Polkadot (DOT) is an open-source blockchain platform that enables users to build and access peer-to-peer decentralized applications. The Polkadot ecosystem is designed to foster innovation and collaboration amongst various blockchains, and it recently expanded with more than 20 new Parachains added in March of 2023. To access the Polkadot network, teams have to win a parachain slot auction, which is paid for in DOT tokens. To better understand the implications and gain a deeper understanding of Polkadot, we consulted ChatGPT, an AI model, to gain insight on the auction process and the impact these new Parachains will have on DOT’s token value.
ChatGPT explained that the “Crowd Loan” structure of sourcing DOT tokens involves “staking” to help a project win an auction. This could, however, attract regulatory scrutiny due to the current U.S regulatory pressure on crypto-staking – like Coinbase’s potential lawsuit from the SEC. However, ChatGPT could not affirmatively state whether crowd loans are legal in the U.S., so it’s important to be aware of any potential risks.
The AI model also merited its opinion on the expected impact of the newly added Parachains on DOT’s value. To attempt to put a figure on the possible upward pressure on DOT’s value due to the added Parachains, we pulled historical price data of DOT from TradingView in order to make price predictions, but some of the results issued by ChatGPT had a significant deviation from the collated data. To override this, we sought to ask the AI model to break down the historical price data and we used it to produce more reliable predictions. ChatGPT predicted DOT’s price to reach $80 by the end of 2023 and $120 by the end of 2024, before urging caution as predicting prices is notoriously difficult.
At the time of writing, data actively trading on CoinMarketCap showed that DOT’s price was $5.90 and display a bearish trend. Although this is not the ideal prediction for short-term prospects, ChatGPT suggested that if there is a surge in buying volume thus pushing the CMF and OBV, there may be an increase in price movements.
In conclusion, it is important to note the many variables in play when predicting a token’s value, and therefore only reliable price predictions can be made when presented with a full view of available data.
About PolkaDot
Polkadot is a blockchain-based platform developed by the Web3 Foundation. The platform was created to facilitate inter-chain communication between different blockchain networks. It also allows users to develop applications on a highly secure and scalable environment. Polkadot is a flexible and open-source platform that enables developers the freedom to create and deploy distributed applications.
About ChatGPT
ChatGPT is an AI model developed by Ubiquity6 that helps businesses build conversational AI bots. It was built to simplify and optimize the natural language processing (NLP) capabilities of companies to allowing them to automate conversations and perform tasks such as virtual customer service. It is also used to gain insights from conversations and to increase overall accuracy and efficiency.
