Do You Know A high-profile investor recently realized a staggering $20 million loss on AI-related crypto tokens. While the Artificial Intelligence narrative is one of the strongest in the current cycle, this event serves as a stark reminder of the risks involved.
The Hype Trap: Many AI tokens experience "parabolic" growth based on speculation rather than underlying utility. When the hype cools or a "whale" exits, the price can collapse rapidly.
Professional Take: Successful investing in niche sectors like AI requires rigorous due diligence. Diversification and avoiding "FOMO" (Fear Of Missing Out) at local tops are essential to surviving the high volatility of emerging tech tokens.
