“What’s in your digital wallet?”
Mega-bank Capital One, known for its inquisitiveness on the contents of Joe Six-pack’s pockets, is now looking into creating its own artificial intelligence-based crypto recommendation platform, as reported by Himadri Saha at Cryptopotato today.
“Initially, the program would find a trending discussion or topic from crypto Twitter, Reddit, news, etc,” Saha writes. “It will then feed it to the credibility analysis engine, which in turn would determine the genuineness of the information and how the market has reacted to such updates in the past. Based, on that it would churn out insights for traders to call their shots. Capital One said in the patent that the system could become potent enough to detect fake cryptocurrency trading volumes. It could also determine the rate at which news of an exchange hack goes viral on social media platforms and news sites.”
Saha reports Capital One is likely to rely on platforms like Telegram, Twitter, YouTube and even Reddit to aggregate its cryptocurrency data before putting it through a “credibility analysis engine” that the company contends will fact-check reams of information to get key insights.
Company representatives even claim that Capital One’s new tool will be able to detect fraudulent trade volumes, which has been a major issue on platforms as analysts try to sort out what kind of growth are real and which are driven by faulty signals.
The timing may be great, actually: analysts looking at where we are right now, in tech and in broader markets, are noting that while oil and gas dinosaurs and others are cratering, tech firms and companies with tech-facing products and services are, for the most part, doing very well.
“The COVID pandemic has taken existing trends – greater dependency on tech, online shopping, remote working, etc. – and supercharged them,” said Benjamin Jones, a senior multi-asset strategist at State Street Global Markets, in a statement as reported by Reuters today, as journalists note a glorious picture of financial activity in the tech sector.
If that’s true, and it holds for markets across the board, Capital One is getting further into crypto as a secondary player at just the right time. Elsewhere, we have hodlers waiting with baited breath as Berkeshire Hathaway makes a big gold play, wondering when those same types of curb appeal will boost Bitcoin as a “safe haven” for money flowing out of battered equities markets.
