Crypto traders now have the power to use a new AI tool, called Satoshi, to optimize their strategies and get personalized advice based on their portfolios. The chatbot is powered by ChatGPT, which utilises the same learning model as OpenAI’s GPT-4. The development of the tool has taken almost nine months, but can now provide traders with an edge similar to that held by large trading companies.
Satoshi and ChatGPT are capable of scraping popular social media for valuable data about specific assets for investing, and can answer questions about a portfolio’s performance. With the tool, traders can estimate the costs of particular trades, like short positions, and the cheapest way to acquire a significant amount of cryptocurrency.
OpenAI’s GPT-4 is a large language model (LLM) which helps Satoshi to respond to certain questions, enables it to learn patterns from training data.
FalconX is the prime broker and the main developer of Satoshi. The company is headed by Raghu Yarlagadda, who announced the creation of the AI assistant. Since then, it has been gaining traction in the crypto-sphere and is fast becoming a typical trading buddy.
However, the developers need to be careful that Satoshi can detect false information and not provide traders with misleading predictions. It needs to be able to detect the potential for counterparty risk and prevent investors from risking their hard-earned money based on an over-inflated understanding of their potential to generate profits.
Recently, Tesla CEO Elon Musk and other members of the tech community called for a ban on GPT-4, which is the applications’ foundation. An open letter signed by almost 10,000 people asked for agreement between lawmakers and industry members to make sure AI was properly regulated so that tools like Satoshi could continue to run with the utmost transparency.
The Data Protection Authority of Italy also issued restrictions on OpenAI’s use of customer data soon after the release of Satoshi. In the US, several states halted the activity of another AI trading system, YieldTrust. It had promised investors a whopping 2.2% daily return on their staking rewards, which proved to be too good to be true and the defendant was given just one week to answer the cease-and-desist order.
All in all, the release of new AI tools such as Satoshi will make sure trading is properly done and not based on imaginary profits and losses. If used well, it will provide traders with the much-needed data and advice to make the most out of their portfolios. However, the company must stay wary of how it uses its customer data, as well as how it can prevent incorrect information from convincing people to risk their investment.
