The union of artificial intelligence (AI) with crypto trading packs potential to draw a transformative roadmap for the financial sector. The belief aligns with the vision of former FTX.US CEO, Brett Harrison, who now heads an AI-focused venture named Architect. With the collapse of FTX.US as his backdrop, Harrison holds faith in AI for easing the complexities in formulating algorithmic trading tactics.
Architect kicked off in early 2023 with $5 million seed funding from Coinbase Ventures and Anthony Scarmucci among others. The mission sits clear- to extend sophisticated investment tools to retail traders and mammoth financial institutions. Architect’s platform enables writing algorithmic trading code for crypto using generative AI tools, a feature that primarily remains locked to specific trading firms, owning particular skill sets and expertise.
In practise, say on Coinbase (COIN), the platform allows the setup of software that purchases Bitcoin whenever its price dips lower than the rates on other crypto exchanges. However, the utilization of AI remains in its budding phase, with broader implementation planned as a potential extension of platform features. In customer-feedback driven developments, another AI-aided tool under consideration employs large language models for advanced market indicators or inherently integrating them into the trading process.
Large language models, like Google’s Bard and OpenAI’s ChatGPT, as AI-driven neural networks trained on massive language datasets, can comprehend and replicate human-level texts. Combining their understanding of intricate concepts with user-friendly explanations, they significantly elevate software’s capability and user-experience.
Harrison, while acknowledging the potential of AI, doesn’t undermine the importance of human oversight. The success of trading strategies, he elucidates, depends on the team behind it as much as on the generative AI used to build it. The teams need to diligently review the operation of AI-prompting strategies and keep them in sync with their performance expectations.
Parallel to his new initiative, Harrison continues to confront the repercussions of his former company FTX’s infamous collapse. Departing as CEO months before the mishap, his involvement with FTX didn’t escape the speculation from potential investors for Architect. While some remained apprehensive about his association, others extended support, culminating in a successful fundraising endeavor despite the gloomy industry scenario.
The journey of AI integrating into the trading process, although fascinating, would certainly not be free from challenges. Striking the right balance between leveraging advanced technology and ensuring adequate human discretion in strategies would shape the successful adoption of AI in crypto trading landscape.
Source: Coindesk
