A new artificial intelligence (AI) assistant called Satoshi has been unveiled that integrates the popular ChatGPT tool to give crypto traders an insight into their financial portfolios. The technology-driven tool is based off a language model (LLM) developed by OpenAI, which will give clever advice to users on making trades or gaining rewards.
Raghu Yarlagadda, Chief Executive Officer (CEO) of prime broker and Satoshi developer FalconX, noted that the tool has been in the works for nine months, and the OpenAI generated generative AI technology was essential for development. It builds on the GPT-4 model which utilizes both images and text to provide an in-depth analysis of user portfolios.
Satoshi is similar to the tools employed by algorithmic trading firms as it will help users develop personal strategies for unique market conditions and track the performance of their holdings. As such, it can offer tips on the costs involved with portfolio trades, such as short positions and cost savings, as well as insights on digital asset investment through the use of social media scraping.
Developers have been careful to ensure that Satoshi can recognize potential counterparty risk, which stops users from investing their money in trades with a high risk of going awry. Moreover, they’ve also addressed the potential of AI hallucinations with the tool, which entails the spread of false information as truth.
The emergence of Satoshi occurs only a few weeks after Elon Musk and other figures in the tech industry petitioned for a ban against the use of Generative Pretrained Transformer 4 (GPT-4) technology. The letter advocated for cooperation between businesses and policymakers to formulate sound AI governance, gaining more than 10,000 signatures in the process.
On the other hand, US securities regulators recently took action against YieldTrust, an AI trading platform that purported users of 25% increased profits over human traders without supplying any evidence. A cease-and-desist order was issued and it must be responded to within a week or risk being permanently barred from offering the service.
The company behind Satoshi, FalconX, is a cryptocurrency prime broker that provides trading tools and liquidity solutions to professional and institutional investors. Founded in 2018, the firm has offices in San Francisco and Mumbai and is funded by world-renowned venture capital firms such as Lightspeed Ventures, Matrix Partners, and SoftBank Ventures.
Raghu Yarlagadda, CEO of FalconX, is an experienced entrepreneur who has developed multiple startups and held notable roles at Microsoft, Oracle and McKinsey. He also serves as an advisor for the Global Entrepreneurship Network India and a Venture Partner for Lightspeed Ventures.
