Capital One Files For Cryptocurrency Trading AI
Capital One just filed a patent for a cryptocurrency Artificial intelligence platform that will attempt to predict crypto market trends
The United States Patent and Trademark Office recieved a trademark application from Capital One for a “Credibility Analysis Engine” that would analyze cryptocurrency market trends by scouring through Telegram, Twitter, Reddit, Crypto news sources, Youtube Videos, Blog posts, and more.
The patent, which can be viewed here further details how the AI driven platform would aggregate the data compiled into a “market trend prediction” for the cryptocurrencies in an attempt to generate personalized trading decision for cryptocurrencies that show potential to increase in value.
How would the system determine what is and is not a credible source of information?
The cryptocurrency investing space is rife with “pump and dumps” and seemingly endless content from people attempting to gain exposure for projects that they invest in. Most of the “Investment Advice” is less than reputable when it comes to the cryptocurrency markets. Which begs the question how the proposed AI system would sort through all the sources available and determine what is and is not good investment advice. Capital One thinks they have the answer for this. According to the patent:
“The credibility analysis engine will (i) search and collect past predictions made by investor A on Twitter and other social media and (ii) use actual market data in the corresponding time frame to assess how credible A’s prediction is in the past. The credibility analysis engine then analyzes how social media users’ react to this tweet by counting the number of views, likes, shares, parsing the content and sentiments expressed in comments… and checking if the tweet received any support by credible sources…, all of which indicates the level of influence”
What does all this mean for crypto investors? - Why should you care?
Although the patent mentions “a user” several times, Capital One has not officially commented on how they will use this system after it is built. So why is this significant?
Cryptocurrency has been going through a massive expansion throughout 2020. This year alone the cryptocurrency and Blockchain technology has experienced massive leaps towards large scale global adoption. We have seen Governments rush to adopt digital based currencies, several patents and global attempts have been made to implement blockchain based voting systems, companies have lined up to integrate core systems with blockchain technology, Bitcoin has officially been classified as money, and crypto markets have experienced massive exposure and support from several high level and well respected investors. This latest patent from Capital One hints at the future of cryptocurrency based trading.
Whether or not this AI based system will ever come to market is unsure. What is sure is that it is an exciting time to be a Cryptocurrency investor.