Coinbase and Binance Back AI Altcoin Kaito Despite Price Drop

Coinbase and Binance, two leading cryptocurrency exchange platforms, have announced their support for a new artificial intelligence (AI)-focused altcoin, Kaito (KAITO).

Coinbase, in a recent announcement, revealed that it is adding support for Kaito on its own blockchain, Base, with an "Experimental" label. Binance, the world's largest crypto exchange by volume, has also added support for the digital asset.

The "Experimental" tag, introduced by Coinbase, is used to designate certain digital assets as riskier, lower-liquidity tokens. Despite the support from these major exchanges, the price of KAITO has decreased by 20.8% over the last 24 hours, trading at $0.952 at the time of writing.

KAITO aims to address the issue of fragmentation within the crypto space by leveraging AI. Fragmentation occurs when crypto markets become increasingly divided by blockchains, leading to different sets of standards, a lack of interoperability, and stagnation.

According to its official webpage, Kaito is an information finance (InfoFi) protocol designed to answer long-tail questions. By tokenizing hard-to-quantify information, Kaito provides valuable reference points that enable the formation of markets. For instance, it can help determine if Toyota's popularity has increased over time or how sentiment toward Solana NFTs has shifted recently.

As the crypto market continues to evolve, the integration of AI-focused altcoins like Kaito could potentially address some of the challenges faced by the industry. However, investors should remain cautious and conduct thorough research before making any high-risk investments in cryptocurrencies or digital assets.