Market Metrics

Total Crypto Market Cap: up 0.7% to $2.4T
Total AI Sector Market Cap: down 2.3% to $20B

Top Movers (24hrs):

📈 OpenFabric AI (OFN): up 52.5% to $0.5313
📈 Forta (FORT): up 15.8% to $0.2226
📈 Humans.AI (HEART): up 20.4% to $0.03059

Highlights of the Weekend

🛡️ The Future of Smart Contract Security
TestMachine's Predator, an AI-powered auditing tool, recently demonstrated its capabilities by replicating the complex attack on Euler Finance, which resulted in a $197 million loss back in March 2023. By forking the original Euler contracts into a local testnet simulation environment and deploying Predator, the tool learned and exploited the vulnerability within 40 hours. This was without any prior knowledge of the attack. Predator works by using AI agents to simulate millions of transactions and those that find unique states get rewarded.

The emergence of AI-powered auditing tools like Predator highlights the potential for these solutions to significantly improve smart contract security. This is particularly important given the lack of widely adopted standards for smart contract verification and the shortage of qualified smart contract security audit professionals. Even when protocols are audited by top firms, it is no guarantee that they are safe from a hack. Recent incidents such as the $63 million stolen from Munchables on Blast network and the $11 million hack of Prisma indicate that the issue with smart contract security is not going away.

While AI-auditing tools are a positive development, it is important to remember that this technology is a double edged sword. The arms race between AI-powered auditing tools and AI-assisted hackers is expected to intensify, as hackers are also likely to leverage AI technology to develop new techniques for exploiting weaknesses in smart contracts.

➡️ The need for effective smart contract security solutions is becoming increasingly critical given the level of institutional adoption and total capital that is flowing into smart contracts. AI-driven auditing tools have the potential to efficiently identify vulnerabilities and help prevent costly hacks on a scale beyond what is possible with current auditing solutions. With the smart contract security sector already valued in the billions annually, a well-executed AI auditing solution could likely capture a meaningful share of this market. We will be keeping an eye out for a project in this space, especially if it were to leverage the IMO model to tokenize, enabling investors to share in the revenue generated by the AI. Given the potential for immediate revenue, the growing importance of robust smart contract security, and the limitations of traditional auditing methods, this is an area that warrants attention in the coming months.

In Other News

🟠 The Fetch.ai, SingularityNET, and Ocean Protocol communities voted to approve the Artificial Superintelligence Alliance. The official token merger is expected to arrive within the coming weeks.

🟠 SingularityNET announced a partnership with Minswap Labs, a DEX on Cardano. Is AI coming to Cardano

🟠 OriginTrail released the roadmap for its Decentralized Knowledge Graph V8.

🟠 The Sharpe AI IDO goes live today at 2:00 pm UTC.

Gen AI of the Day

💐 April showers bring May flowers.

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