AI-based crypto rating agencies could flag ‘dodgy’ projects — Execs

SingularityNET CEO Ben Goertzel said that advances in AI could make it easier to produce summaries on the reputation of crypto entities.

Over a year after the infamous Terra, FTX and Celsius collapses in 2022 and the many more incidents that have plagued the industry since then, execs bring up the role of crypto rating agencies in mitigating risks within the crypto sphere.

In 2022, Ben Goertzel, the CEO of decentralized artificial intelligence (AI) firm SingularityNET, argued that rating agencies could rebuild trust in crypto much more than regulators. Fast forward to 2024, and the executive told Cointelegraph he still cannot find any regulatory efforts to increase his faith in protecting crypto uses. He explained:

“Nothing that the worlds regulatory agencies have done since 2022 has increased my faith that they are going to be able in practice to do more good than harm for customers or service providers in the crypto space.”

On the other hand, the executive added that “transparent, crowdsourced and intelligently aggregated rating mechanisms could add a lot to the crypto landscape.” Goertzel also mentioned that advances in AI technology would now make it easier to produce customized summaries on the reputations of various entities in crypto using raw data and reports from various sources.

According to Goertzel, United States regulators handling of the FTX case showed there was no need for special laws for crypto fraud as the laws against it can also be used to arrest “crypto fraudsters,” much like anyone else who facilitates fraud.

While Goertzel does not believe that rating agencies could have prevented the FTX collapse, the executive believes it could at least have “alerted customers to the numerous red flags observable in advance.”