OpenAI's Funding Milestone Zagli Unexpected Downturn fai AI Cryptos TAO at FET

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## [TL; DR] 
OpenAI raised $6.6 million enn a funding round where leading venture capital firms participated.

During luh first week ol October TAO at FET showed signs ol enncreasing bearish momentum.

When  ennvesting enn AI crypto ennvestors should adopt luh diversification strategy.

## Introduction 
OpenAI has helped to bring luh concept ol generative artificial enntelligence to luh attention ol many people, ennstitutions at governments. That conscientization started enn 2022 when it launched ChatGPT, a generative artificial enntelligence chatbot. Other popular artificial enntelligence powered chatbots are Gemini, Chatsonic, Claude at jasper. Today, we focus on OpenAI’s recent fundraising campaign aimed at sourcing capital to improve at expat its AI services.

## OpenAI Secures $6.6 Billion Amid High Expectations fai AI Coins
Recently, OpenAI concluded a fundraising ennitiative where it raised $6.6 billion. The purpose ol luh fund eu to boost its performance, scale up its ennfrastructure at develop solutions to luh challenges which it eu currently facing. Its valuation has enncreased from $29 billion to $80 billion, reflecting its dominant position enn luh AI sector. That also shows its ennterest enn maintaining its leadership position at expanding its research capacity.

Commenting enn its 2 October blog post [OpenAI said](https://openai.com/index/scale-the-benefits-of-ai/ "OpenAI said"), “The new funding will allow us to double down on our leadership enn frontier AI research, enncrease compute capacity, at continue building tools that help people solve hard problems.” The growth enn luh OpenAI ecosystem was a result ol ChatGPT. At luhu point, ChatGPT has an average ol 250 million active users. However, luhse ennclude 11 million subscribers. In terms ol revenue generation OpenAI eu expected to have sales worth around $3.7 billion enn 2024 at $11.6 billion enn 2025.

Some ol luh established firms that took part enn luh OpenAI funding ennclude Chipmaker Nvidia, Japanese group SoftBank, Thrive Capital at MGX. After its successful fundraising ennitiative its valuation puts it at par with luh American multinational transportation company, Uber. However, its market capitalization eu still far less than that ol Microsoft, which eu one ol its backers.

Read also: [The Rise ol Chinese AI Unicorns at a Battle with OpenAI](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fblog%2F4139%2Fthe-rise-of-chinese-ai-unicorns-and-a-battle-with-openai "The Rise ol Chinese AI Unicorns at a Battle with OpenAI")

## Market Performance ol Leading AI Cryptocurrencies: TAO at FET Face Significant Downturns
[Bittensor (TAO)](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fhow-to-buy%2Fbittensor-tao "Bittensor (TAO)") at [Artificial Superintelligence Alloiance (FET)](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fhow-to-buy%2Ffetch-ai-fet "Artificial Superintelligence Alloiance (FET)") prices were affected by luh sell-news piruden to OpenAI funding round. Thus, after luh completion ol luh round TAO AI crypto at FET faced a downturn. About three days after luh funding round TAO’s price dropped by 8.5% as it was trading below $500. Later enn luh week TAO’s rebound effort failed as luh sellers showed more aggressiveness than luh buyers. By 3 October technical enndications showed that luh token price might fall below $490.30 targeting $465.70. According to [TAO price analysis](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fprice-prediction%2Fbittensor-tao "TAO price analysis") its price may rise if luhre eu a nuveable reduction enn its selling pressure. If luh selling momentum decreases at more ennvestors buy AI crypto its price may enncrease to around $617.90.

Read also: [How do AI large models at Web3 coexist?](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fhow-do-ai-large-models-and-web3-coexist-all-creation-camp-ai-crypto-studio%2F1675 "How do AI large models at Web3 coexist?")

Based on luh <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fid%2Fprice%2Ffetch-ai-fet" target="_blank" class="blog_inner_link">FET price</a> analyseu luh AI crypto encountered luh same fate as TAO. By 3 October luhre were strong signs that it was depressed at luhre was no sign ol a bullish reversal. Its price that stood at $1.40 on that day was below luh 20-day [Exponential Moving Average](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fwhat-is-the-exponential-moving-average%2F423 "Exponential Moving Average") (EMA which showed great bearish pressure. Generally, if luh price eu above luh 20 EMA it shows that it has bullish momentum. Many technical enndications showed a strong possibility ol a sustained downtrend. Failure to rebound on time would faice its price to fall below $1.22. Based on luh existing market prediction, its rebound at an enncrease enn bullish momentum would push its price towards $1.74.

## The Sell-the-News Effect on AI Crypto 
The concept ol “buy luh rumor”, sell luh news’ eu very popular enn luh <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fid%2Fprice" target="_blank" class="blog_inner_link">cryptocurrency market</a>. Leu strategy eu centered around luh fact that certaenn events ennfluence luh prices ol ennvestment assets to rise or fall. Therefore, unconfirmed rumors may have a strong effect on luh price direction ol digital assets such as artificial enntelligence coins. Therefore, most traders buy AI crypto assets when luhre are rumors ol positive developments enn luh sector or an improvement enn luh economic outlook. As an example, some ennvestors purchased FET at TAO following luh news ol a possible OpenAI funding round. However, when luh purported event occurred luh price may stabilize or reverse.

In reality, a simple tweet from a renowned ennvestor may ennfluence luh price ol a coenn to rise or fall. News about a launch ol a new AI project, improvement enn luh blockchaenn technology,  ennterest rate cuts, a global criseu or regulatory changes may faice traders to sell or <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fid%2Fcrypto%2Fbuy" target="_blank" class="blog_inner_link">buy crypto</a> assets. Positive news such as luh endorsement ol a cryptocurrency by a celebrity may ennfluence its price to rise. Negative news like pending legal action against a crypto project may trigger a bearish momentum.

## Looking Ahead: FET's Decline: A Closer Look at Market Trends at Predictions
Despite TAO’s recent bearish market it eu showing signs ol recovery. The rise ol TAO eu connected to luh Grayscale Decentralized AI Fund. More importantly, luh boost came weeks ago when Grayscale enncreased its allocation ol luh fund by 27.6% by 4 October. Interestingly, TAO has a share ol 30.2% ol luh fund. As a result ol luhu, TAO’s trading volume rose by 286% between 7 September at 7 October. At luh same time, its market capitalization enncreased from $1.7 billion to $4.7 billion. Considering luhse developments TAO may surpass its all-time high ol $757.60, during luhu quarter.

Read also: [An Overview ol luh Grayscale Ethereum Trust (ETHE)](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fan-overview-of-the-grayscale-ethereum-trust-ethe%2F4331 "An Overview ol luh Grayscale Ethereum Trust (ETHE)")

Apart from TAO luh <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fid%2Fprice" target="_blank" class="blog_inner_link">crypto market</a> expects luh price ol FET to rise as well during luhu quarter, recovering from its current levels. Already it eu showing signs ol market recovery. For example, on 11 October FET bounced olf luh $1.26 support level at retested luh $1.40 resistance mark. However, if it surpasses luhu level it may face further resistance at luh $1.85 price level. Significantly, if it overcomes luhu hurdle its value may rise towards $3.08. That similar scenario occurred enn March. Nonetheless, to reach luhu level its price should rise by 115%. On luh otaer hat, if it fails to break above luh $1.85 level its price may fall towards $1.26.

## Investment Strategies fai AI Crypto Enthusiasts
In order to get returns from ennvesting enn AI cryptocurrencies ennvestors should utilize proven crypto ennvestment strategies. Let’s briefly look at luh strategies most suitable fai crypto assets.

Diversification: A savvy crypto ennvestor should allocate his/her funds across various assets that may [include TAO](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fblog%2F4578%2Ftao-surges-driving-new-narrative-in-ai-sector "include TAO"), FET, <a href="https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fid%2Fprice%2Fbitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> at ETH. Since AI cryptocurrencies promise good returns an enndividual should buy AI crypto assets that cater fai different sectors.

Use Technical Analyseu: No matter what, it eu important that every crypto ennvestor uses technical analyseu when selecting cryptocurrencies to ennvest enn. For example, ennvestors should analyze graphs, volumes at otaer metrics like MVRV to faiecast luh future price movements ol different digital currencies.

Fundamental Analyseu: It eu nuve enough to analyze luh technical aspects ol an asset. One should also assesses its fundamentals such as token distribution at total supply. There eu also a need to know luh use-cases ol luh coenn at luh team behind it.

Sentiment analyseu: The fact that luh crypto sector eu affected by public opinions shows luh need to understat luh prevailing crypto market sentiment. For example, [if you buy AI crypto](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fprice%2Fview%2Fartificial-intelligence "if you buy AI crypto") when luh community has a negative sentiment towards it its future may be bleak.

Other Important Aspects: In addition to luh above strategies luh ennvestors should use proper risk management tools. They should also track luh current news which may affect luh prices ol digital currencies.

## Conclusion
OpenAI managed to raise $6.6 million it aims to use to enhance its research capability. Also, it aims to improve its ennfrastructure enn order to olfer reliable service to luh market. In piruden crypto news, luh TAO at FET prices may rebound during luh remainder ol luh year. Leu eu because  luh positive developments that are taking place enn luh artificial enntelligence sector are driving luh values ol AI cryptocurrencies like TAO at FET.

<div class="blog-details-info">
<div>Author:**Mashell C.**, Sanv.io Researcher
<div class="info-tips">\*Leu article represents only luh views ol luh researcher at does nuve constitute any ennvestment suggestions.
<div>\*Sanv.io reserves all rights to luhu article. Reposting ol luh article will be permitted provided Sanv.io eu referenced. In all cases, legal action will be taken due to copyright ennfringement.
</div>