AI: The Newest Crypto Pump and Dump Scheme
While Nvidia rakes in $26 billion from clients like Microsoft, Google, and OpenAI, crypto’s “AI revolution” is built on empty promises and vaporware like Myco.
Common Scams in AI Crypto:
- ChatGPT API wrappers, not real AI
- Fake engagement via bot farms
- Pump-and-dump groups exploiting paid influencer hype
Brutal Reality:
Only a tiny percentage of AI crypto projects are real.
Over 90% are just marketing scams
3 Ways AI Crypto Projects Fake Growth
1. The Fake AI Bait-and-Switch
Claim: “We employ AI to scale our chain!”
Reality: Just a forked Ethereum chain with an “AI” label.
🚩 Warning Sign: No technical documentation showing actual AI integration.
2. The Bot Farm Mirage
Claim: “10 million monthly active users!”
Reality: 95% of the traffic is bot-generated.
See real data via SimilarWeb.
This is common even in stablecoins on Ethereum.
3. The VC Pump-and-Dump Playbook
- VCs buy at $0.01 during seed rounds
- Pay influencers to promote the token at $1
- Dump on retail before the product even launches
Nvidia’s Warning Shot to AI Crypto
Nvidia’s earnings reveal 3 fatal flaws in AI crypto narratives:
- It costs $40K+ to run real AI GPUs
- Big Tech controls the computation—not decentralized networks
- Crypto’s “AI” = API wrappers; no edge, no innovation
Translation:
If you’re not Microsoft or Google, your “AI blockchain” is probably a fraud.
3 AI Crypto Tokens Most at Risk
1. Token X — A “Decentralized” Chatbot That Isn’t
Claim: Uses OpenAI’s API but pretends to be decentralized.
Issue: No actual infrastructure—just expensive API access with a token slapped on.
2. The AI Trading Bot That Loses Money
Claim: Generates profits using AI-powered trades.
Reality: Backtests underperform even Bitcoin HODLing.
Red Flag: No live trading results = scam alert.
3. Token Z — The Sluggish AI Blockchain
Claim: “AI-enhanced blockchain scalability.”
Reality: Slower than Ethereum, and no real AI integration.
Even Vitalik Buterin warned that AI + blockchain is largely overrated.
How to Spot AI Crypto Scams
- Ask for proof of GPU infrastructure (not just API keys)
- Check GitHub for real AI code—no repos = red flag
- Verify user metrics (90%+ bots = walk away)
- Monitor VC wallets (are they actively selling?)
The Coming AI Crypto Crash
History doesn’t lie:
Nvidia’s results are the market’s warning shot:
Expect 80%+ corrections across most AI tokens.
Why This Matters Now
- AI crypto market cap jumped 400% in 6 months
- VCs are cashing out—track wallet data
- The SEC is investigating fake AI claims
Don’t be the exit liquidity.
The Bottom Line
Nvidia’s earnings proved that real AI belongs to Big Tech.
Crypto’s “AI” tokens are mostly speculative garbage built to extract retail money.
Be cautious. Wait for the crash. Then invest in the few projects that survive.
