Weekly Flip Thru: AI gets asked for investment advice and Celsius plans to pay back creditors after bankruptcy
What’s going on, crypto cronies? In case you are yearning for some learning, this week’s edition of the Flip Thru has you covered! Many of the headlines coming from the cryptosphere this week were still sorting out the aftermath from America’s most serious banking crisis in over a decade. The big stories include Celsius hashing out repayment plans since declaring bankruptcy, an AI chatbot trying its (robotic) hand at investing strategy, and last but certainly not least is a privacy-focused method that begins with the letter ‘Z.’
Here are the top crypto news stories we’re watching this week:
Diminished returns? Celsius unveils payback plan for creditors (Blockworks)
Crypto investors feeling burned by the Celsius bankruptcy of 2022 will get an opportunity to claw back some of their crypto holdings from the now-defunct lender.
A filing from Celsius last week revealed that creditors can get more than 72% of their crypto holdings returned. Celsius customers who want to claim their holdings have to agree to the custody settlement by April 24, 2023.
Chatbot or purchase bot? AI tapped for investment advice following banking troubles (Cointelegraph)
Does AI have the edge when it comes to crypto buying and selling? That's what an experiment involving Chat GPT-4 aimed to find out this month.
The investor told the chatbot to read selected articles about recent bank closures in the U.S. and, with that knowledge in mind, take $100 in cash and come up with a strategy to “grow that $100 into as much money as possible in the shortest time.”
The breakout was as follows:
$50 into bitcoin (BTC)
$25 into ether (ETH)
$15 into Cosmos Hub (ATOM)
$10 into NFTs and “Web3 related projects”
Chat GPT-4 is the latest version of OpenAI’s powerful and controversial text generator, which quickly rose to become the most-downloaded consumer app of all time at the end of 2022. Each generation of the AI-powered chatbot is supposed to be many times more powerful than the previous generation. The app works by ingesting all the information contained on the internet, and then rendering a very readable answer based on prompts given by a user. Think of it like Google with an advanced degree.
Zero knowledge thirty, or the latest privacy tech that has crypto in its sights (Forbes)
Zero Knowledge Proofs have been kicking around crypto circles for some time, but now it looks like the discussion is poised to break out of the theoretical phase and into real-world applications. The mathematical concept of Zero Knowledge Proofs, or ZK proofs, seems simple on the surface.
To boil it down to just a few words, ZK proofs can establish whether or not someone knows private information without that person needing to reveal the private information. There’s a lot more to it than that, and we will devote more words to it on the CoinFlip blog, but for now let’s say that this mathematical concept is quickly gaining believers in the world of blockchain, cryptography, and data security.
Why do crypto firms care about ZK proofs? Crypto services firms are always looking for ways to stay ahead of hackers. Crypto crime had its most lucrative year on record in 2022, and a little extra security never hurts. So a mathematically proven method for verifying if someone claiming to be a crypto wallet’s owner isn’t faking their identity could give customers a fair amount of confidence.
Wish you had a proven source for crypto news? Subscribe to the CoinFlip newsletter to get insights like these delivered to your email. We asked an AI if there was such a thing as a reversible crypto transaction, and we’re here to tell you that the answer is no: all crypto transactions are final and irreversible. Keeping your personal information secure when buying, selling, or swapping digital assets is always wise. See you next time, FlipFam!
