Risks of AI agents in crypto trading
AI agents in crypto trading pose risks such as algorithmic bias, security vulnerabilities, regulatory gaps and potential market manipulation, necessitating caution from investors.
One notable example is Truth Terminal, an AI bot that promotes memecoins like Goatseus Maximus (GOAT). While it can create buzz and drive prices up, this hype often lacks any fundamental support, making investments highly speculative.
Another risk is the potential for algorithmic bias, where the AI might favor certain narratives or projects, creating echo chambers that mislead investors about a token’s value. This can lead to irrational exuberance and unsustainable price spikes.