Artificial Intelligence Developments Have Significant Consequences for Crypto Sector
Artificial intelligence developments have been moving at a rapid pace in recent years, leading to both positive and negative consequences. One of the significant negative consequences of AI development is affecting the crypto sector, where financial damage caused by “AI deep fakes” is increasing rapidly.
According to recent research, the financial damage caused by AI deep fakes in the crypto world is expected to reach $25 billion this year. These deep fakes are fake videos generated by AI, mainly used for fraudulent crypto projects, phishing activities, and Ponzi schemes, often impersonating well-known figures to trick victims into following fraudulent links.
Deep Fakes Used by Crypto Scammers
Deep fakes are fake videos generated by AI. These videos are mainly used for fraudulent crypto projects, phishing activities, and Ponzi schemes, often impersonating well-known figures to trick victims into following fraudulent links. Bitget warns that deep fakes could be involved in 70% of all crypto-related crimes by 2026.
“This trend has been going on since 2022, when the total damage caused by deep fakes worldwide already amounted to $79.1 billion. In 2024, a global increase of 245% in the use of deep fakes is expected, especially in countries such as China, Germany, and the United States,” according to Bitget Research.
The Dangers of AI are Growing
The AI technology behind deep fakes is becoming increasingly sophisticated, making it easier for malicious actors to create convincing fake videos and images. While AI certainly has positive effects, the negative consequences are also significant, especially for the crypto sector.
Michael Saylor, the famous Bitcoin (BTC) bull, complained about the countless fake videos of him that are used to scam the ignorant. “My team removes more than 80 AI-generated videos from YouTube every day. But the scammers keep uploading new ones. Don’t trust it, but verify,” he said.
The big fear now is that AI technology will continue to develop, leading to scenarios where scammers could even impersonate victims’ relatives. “A video impersonating someone close to the victim can be crucial for fraudsters, while a fake video from an influencer can boost investor confidence in a fraudulent project as an additional tool,” Bitget said.