SingularityDAO, Cogito Finance, and SelfKey announced their merger on Tuesday, forming a new entity called Singularity Finance. The combined company aims to develop a specialized blockchain platform for tokenizing and trading artificial intelligence (AI) assets.
The merger, announced on October 15, 2024, in Gros Islet, Saint Lucia, will result in the creation of a new Ethereum Virtual Machine (EVM) Layer-2 blockchain. This platform is designed to facilitate the tokenization of AI-related Real World Assets (RWA), such as GPUs and other computing resources essential for AI development and operation.
According to the companies involved, the new venture aims to address challenges in the ownership and accessibility of AI-related assets and their associated yields. By leveraging blockchain technology, intends to create decentralized markets where users can participate in AI asset ownership and trading, potentially opening up new funding avenues for AI innovations.
The merger will consolidate the existing tokens of the three companies—SDAO, CGV, and KEY—into a single new token called SFI. This token will serve as the primary currency for the Singularity Finance network. The companies have outlined specific conversion ratios for the token merger, based on a 200-day moving average of each token's value up to August 20, 2024.
Leadership of the new entity will be shared among executives from the merging companies. Dr. Ben Goertzel, CEO of SingularityNET; Cloris Chen, CEO of Cogito Finance; and Mario Casiraghi, CFO of SingularityNET and Co-Founder of SingularityDAO, will form a leadership council to guide the new organization.
The companies project that the mainnet launch of their new Layer-2 blockchain will occur in the first half of 2025. Initially, the SFI token will be available on the Ethereum and BNB Chain networks.
This merger represents a convergence of blockchain technology with the rapidly growing AI sector. As AI continues to expand its influence across various industries, the financial mechanisms supporting its growth are evolving. This development may signal a trend towards more specialized financial instruments and platforms designed to cater to the unique needs of the AI economy.
While the blockchain and cryptocurrency space is known for its volatility and challenges, this merger brings together complementary technologies and expertise that could potentially address key issues in AI asset management and democratization. The combined experience of the leadership team in both AI and blockchain domains positions the new entity to potentially overcome regulatory hurdles and technical challenges.
As Singularity Finance moves forward, it has the opportunity to set new standards for how AI assets are tokenized, traded, and integrated into the broader financial ecosystem. If successful, this venture could pave the way for increased accessibility and liquidity in the AI market, potentially accelerating innovation and adoption in both the AI and blockchain sectors. Industry observers will be keenly watching this space, as the outcomes of this merger could have far-reaching implications for the future intersection of AI and decentralized finance.
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