Apologies for any confusion. Here’s the revised response without the suspected phrase:
The United States Commodities and Futures Trading Commission (CFTC) has issued a cautionary advisory against relying on artificial intelligence (AI) trading bots in the search for substantial cryptocurrency gains. Despite the growing popularity of these bots, the CFTC emphasizes that AI cannot predict the future.
In their recent statement titled Customer Advisory Cautions the Public to Beware of Artificial Intelligence Scams, the CFTC warns crypto investors to be cautious of exaggerated promises made by AI. The risks associated with bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-assisted technologies are highlighted.
One of the challenges amplified by social media platforms and influencers is the dissemination of false information by fraudsters. Melanie Devoe, director of the CFTC’s office of customer education and outreach, stresses the need for investors to be wary, as AI has become a tool for malicious actors targeting inexperienced investors.
The advisory further advises investors to conduct thorough research on the background of companies or traders before entrusting their funds to trading bots or trade-signal providers.
Last year, there was a notable focus on AI-driven crypto trading bots. In April 2023, state watchdogs in the United States took action against an AI trading bot that claimed extraordinary returns, alleging it operated a Ponzi scheme. Suspicions arose due to the lack of evidence supporting the bot’s capabilities.
In June 2023, blockchain analysis firm Arkham Intelligence highlighted a case where a crypto trading bot utilized a $200 million flash loan but only managed to secure a minimal profit of $3.24.
Despite these concerns, some major crypto exchanges, including Bitget, have explored the integration of AI bots on their platforms. Bitget’s CEO Gracy Chen explains that their Commodities Trading Advisor (CTA) AI bot continuously analyzes historical strategy data, enabling self-learning and intuitive strategy creation for users.
The CFTC’s warning aims to protect investors from falling victim to potential scams and unrealistic promises made by AI trading bots. It urges caution, thorough research, and careful consideration before trusting AI technologies with investments in the cryptocurrency market.
