Interview with bitsCrunch: AI-enhanced decentralized NFT data platform

Author: Coinlist

Compiled by: Felix, PANews (content redacted)

Coinlist announced last week that it will open the BitsCrunch (BCUT) token sale at 1:00 a.m. Beijing time on December 15. The token supply for this sale is 60 million BCUT tokens at $0.055 per token. At the same time, 5 million BCUT tokens are reserved for rewards. In addition, an additional 10,000,000 BCUT tokens (1% of the total supply) may be available for purchase during the BitsCrunch Community Sale, at BitsCrunch’s sole discretion.

Coinlist sat down with the BitsCrunch team to learn more about the real-world problems the project solves, how it differs from other Web3 analytics platforms (e.g., Glassnode, Nansen, Chainalysis, Messari, etc.), how users can protect themselves from NFT fraud, BCUT token adoption and growth strategies, and upcoming community sales on CoinList.

What is bitsCrunch and what problems does it solve? **

The crypto market is currently home to thousands of cryptocurrencies, hundreds of blockchain platforms, millions of smart contracts, millions of NFTs, and more, but the accelerated growth of the crypto industry also means that there are plenty of scammers and predators lurking in the industry who want to manipulate the system and squeeze profits. Use your knowledge of blockchain technology to maliciously increase the trading volume or price of NFTs and cryptocurrencies to lure users into falling for it.

While all malicious behavior is recorded on the blockchain, it is difficult for users to gain insight and identify all scams. BitsCrunch’s goal is to analyze all NFT transactions, use AI/ML to automatically detect malicious behavior and make it accessible to users. BitsCrunch initially focused on NFTs, but will eventually expand its monitoring to cryptocurrencies.

bitsCrunch is an AI-powered decentralized NFT data platform that provides analytics and forensic data for NFTs, wallets, and other crypto assets on public chains. bitsCrunch is accessible through a user-friendly API that enables developers to build NFT applications (dApps). BitsCrunch is committed to building a community-driven ecosystem that allows individuals to contribute code or content to continuously enhance and expand the network’s capabilities.

bitsCrunch provides rich NFT data visualization that enables users to:

• Buy, sell, or hold NFTs
• Learn about NFT market capitalization, collections, and more
• Distinguish between real trading volume and fake wash trading volume
• Look for fair prices and originality for NFTs

Reference: bitsCrunch official website

What are the use cases for the BCUT token?

BitsCrunch Token (BCUT) is the native utility token of the bitsCrunch network, and its main function is to facilitate the smooth operation of the network. The safe and efficient operation of the bitsCrunch ecosystem relies on the convergence of cryptographic technology and economic incentives to promote the adoption and maintenance of cybersecurity. The core functions and utilities of the token include:

Incentive: Tokens serve as an incentive tool that motivates operators, delegators, and contributors to stake their tokens. Cybersecurity: Through mechanisms such as staking, BCUT tokens can protect the integrity of the network by enhancing security measures and making malicious activity costly. Independence: The presence of tokens ensures that the network operates autonomously, reducing dependence on external entities or tokens. This segregation protects the ecosystem from the volatility of external tokens, directly aligns rewards with sustainable action, and tightly ties the token’s value and functionality to the network’s goals and performance. Economic Design: The introduction of the BCUT token gives the network the flexibility to shape an economic framework that aligns with the unique needs and ethos of the ecosystem. For example, managing the issuance of BCUT allows the DAO to adjust its usability to ensure that it is aligned with growth goals. DAOs can initially incentivize early adopters with more generous distributions, then gradually adjust the issuance rate to manage inflation, or introduce deflationary tactics (such as token burns) to increase the value of the token as the network grows. All of these decisions will be handled through the governance process. Decentralized Governance: Tokens facilitate decentralized governance, enabling token holders to propose and vote on network protocol changes and proposals. Discount mechanism: Data consumers can earn discounts by staking tokens, which incentivizes interaction with the network.

How does bitsCrunch ensure the authenticity of NFT listings and prevent fraud?

bitcrunch employs several advanced AI/ML technologies to ensure the authenticity of NFT listings and prevent fraudulent activity:

The AI-powered NFT Authenticity Detector (Closed Beta) helps confirm the authenticity and uniqueness of NFTs, helping users distinguish between original works and potential replicas or fakes. In the NFT marketplace, the tool is essential for maintaining the integrity and value of NFTs.

In addition, by partnering with NFT marketplaces, bitsCrunch can provide real-time analysis and verification, ensuring that only authentic and compliant NFTs are listed.

What is Wash Trading? What insights does bitsCrunch’s wash trading index provide?

Wash trading (similar to pump-and-dump) is a form of market manipulation in which investors buy and sell the same financial instrument at the same time. This creates an artificial illusion in the market that there has been an increase in trading volume, but there has been no actual change in ownership. In the crypto space, wash trading often involves false hype or inflating the value of an asset.

BitsCrunch’s Wash Trading Index provides the overall level of wash trading in the NFT market:

• For market analysts and participants, the Wash Trading Index provides valuable data for understanding market trends and making decisions.
• For investors, the index is a tool to assess the compliance of trading activities, allowing them to make decisions based on real market behavior.

How can artists and creators benefit from the data provided by bitsCrunch?

In the digital art market, the success of artists and creators depends not only on creativity, but also on the ability to adapt to the complexities of the NFT space, so the role of data is crucial. bitCrunch provides a range of data-driven insights and tools to empower artists and creators in the blockchain ecosystem.

• Market Insights: bitsCrunch provides data on market trends to help artists and creators understand what types of NFTs are popular or in demand.
• Pricing Strategy: Insights into pricing trends can help artists price their work appropriately.
• Fraud detection: Tools to identify counterfeit and plagiarized NFTs protect the originality and value of the creator’s work
• Audience engagement: Data on buyer preferences and behaviors can inform marketing and community engagement strategies.

By leveraging the insights and tools provided by bitsCrunch, artists and creators in the NFT space can make more informed decisions, protect their intellectual property, and effectively engage with their audiences.

What advice are there for retail investors who are new to the NFT space to protect themselves from potential fraud?

1. Research: Understanding NFT and Blockchain Technology

Before trading NFTs, it’s crucial to understand how NFTs work and the blockchain technology that underpins them. Take the time to learn about the different types of NFTs, the minting process, and their various use cases. Take advantage of reliable sources like educational blogs, online courses, and tutorials. Mastering the technology and potential applications of NFTs and blockchain not only boosts connoisseurship, but also allows you to identify compliant projects from potential scams.

2. Use a reputable platform: Participate in a trusted marketplace

When it comes to buying, selling, or trading NFTs, choosing the right platform is essential. Choose well-known and reputable NFT marketplaces that have a safe and secure track record of transactions and often offer better security measures to keep your assets safe. It is advisable to read reviews and gather feedback from the community on these platforms, noting any red flags or recurring issues reported by other users. A market’s reputation in the crypto community can often serve as a strong indicator of its credibility and reliability.

**3. Verify authenticity: Ensure the compliance of the NFT

One of the key steps in trading NFTs is verifying their authenticity and originality before purchasing. This involves researching the history of the NFT, including examining the creation date, transaction history, and the background of the creator. Many platforms offer tools or services to verify the authenticity of NFTs, helping to identify the real thing and avoid counterfeiting. This requires taking time to do due diligence.

**4. Be wary of hype: **** not affected by ** market sentiment **

NFT markets can be highly speculative and often driven by hype and excitement. While there are opportunities for gains, there are also risks, especially for those who are new to the field. Be wary of projects that are hyped or promise unrealistic returns, as these can be red flags of potential scams. Avoid making impulsive investment decisions due to FOMO, calm down, and critically evaluate the long-term value and compliance of NFTs. In the mixed NFT space, making informed and rational decisions, rather than reacting to market hype, is key to ensuring sound investments.

What are your thoughts on the current state of the blockchain analytics space, especially NFT analytics, and how do you see the industry evolving?

Currently, there are several major players in the field of blockchain analytics, each with its own unique strengths. Companies such as Chainalysis and Elliptic have well-established mechanisms in place to monitor transactions and anti-money laundering (AML) compliance. In contrast, platforms such as Glassnode, Nansen, and Messari excel at providing in-depth market analysis and blockchain data insights.

There are very few entities focused on the NFT analysis space. That’s where bitsCrunch comes in. While established players already have a certain foundation in blockchain analysis, they tend to focus on broader market trends and token analysis, leaving a gap in the NFT space. This also provides an opportunity for bitsCrunch to become a leader, particularly by providing targeted services such as verifying NFT authenticity, detecting fake transactions, and providing NFT-specific valuation reports.

The future of this field, including blockchain and NFT analytics, may depend on the ability to combine AI and machine learning with integrated data analytics to provide deeper insights and predictive analytics. For example, as regulations around NFTs and crypto assets tighten, there will be a growing demand for analytics platforms that can adapt to the regulatory environment while providing valuable market insights. In addition, as the NFT market matures, investors and creators will seek more detailed and in-depth analytical data than just superficial transaction data.

What is the best way to get involved in the bitsCrunch community?

The best way to become an active participant in the bitsCrunch community is to get to know bitsCrunch first. You can visit the official website, read the whitepaper, and learn about any resources that shed light on the project’s goals and the problems it seeks to solve in the blockchain and NFT space.

Get involved and contribute: Participating in the bitsCrunch community can take many forms, such as sharing insights, providing feedback, and participating in projects that align with your expertise.

Leverage skills: If you have skills and expertise (such as technical knowledge, marketing sensitivity, or community leadership) that align with bitsCrunch’s goals, consider contributing more directly. This may involve volunteering on various initiatives, creating educational content, or enlivening community discussions.

How do you plan to build a community around the bitsCrunch ecosystem and attract members?

In order to further build a community around the bitsCrunch ecosystem and the bitsCrunch token and engage members, strategies include:

Hackathon: A hackathon is planned, where participants develop innovative solutions using the bitsCrunch platform. Hackathons are not only a great way to foster innovation in your community, but also a great strategy to discover talent and potential future collaborators. These events can focus on various aspects of blockchain and NFT analysis, encouraging the community to explore creative uses of bitsCrunch tools and services.

Funding Scheme: The implementation of the Funding Scheme is another key strategy. These grants can be funded for developers, creators, and researchers of projects that add value to the bitsCrunch ecosystem. By providing financial support for these projects, it helps to promote the growth and innovation potential of the community. Funders can contribute to the development of the ecosystem through new tool integrations, research papers, or other creative projects.

Governance and DAOs: Implementing DAO governance is a major move to democratize the ecosystem. DAO governance allows token holders to have a say in key decisions from the direction of project development to the allocation of funds. Token holders are able to vote on proposals and participate in governance, fostering a sense of ownership and active participation in the community.

Related Reading: Coinlist’s New Project BitsCrunch: An AI-Enhanced NFT Data Analytics Platform