Wed. Oct 9th, 2024

TLDR:

  • The United States Commodities and Futures Trading Commission (CFTC) has warned investors against relying on artificial intelligence (AI) trading bots to make cryptocurrency investments. The CFTC emphasizes that AI cannot predict the future and warns against exaggerated promises made by bots and other AI-assisted technology.
  • The CFTC advises investors to research the background of a company or trader before entrusting their money to AI bots or trade-signal providers.
  • Last year, several U.S. state watchdogs took action against an AI trading bot claiming to generate high returns, alleging it operated a Ponzi scheme.
  • In contrast, some crypto exchanges have explored the use of AI bots on their platforms. Bitget, for example, offers AI bots that analyze historical strategy data to help users make more informed investment decisions.
  • Overall, investors are cautioned to be wary of the hype surrounding AI trading bots and to exercise caution in their cryptocurrency investments.

The United States Commodities and Futures Trading Commission (CFTC) has cautioned investors against relying on artificial intelligence (AI) trading bots to make cryptocurrency investments. In a recent statement, the CFTC emphasized that AI cannot predict the future and warned against exaggerated promises made by bots and other AI-assisted technology.

The agency advised investors to be skeptical of claims of impressive returns made by AI trading bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-assisted tools. It also highlighted the prevalence of false information spread by fraudsters through social media platforms and influencers.

The CFTC further emphasized the importance of researching the background of a company or trader before entrusting funds with trading bots or trade-signal providers. It warned that AI has become another tool for malicious actors seeking to take advantage of novice investors.

Last year, AI-driven crypto trading bots came under scrutiny after several US state watchdogs took action against an AI trading bot claiming to generate high returns. The watchdogs alleged that the bot was operating a Ponzi scheme and lacked proof of its capabilities.

Despite these warnings, some crypto exchanges have explored the use of AI bots on their platforms. Bitget, for example, offers an AI bot that analyzes historical strategy data to help users make more informed investment decisions. According to the CEO, the AI bot operates through continuous self-learning, simplifying investment decisions for users.

In conclusion, the CFTC advises investors to exercise caution and skepticism when it comes to AI trading bots and to thoroughly research the background of companies or traders before investing their funds.

Related Post