With great returns come great risks. The promise of big payoffs in the crypto world has attracted many criminals. The recently launched Web3 Ai token ($WAI) is a perfect illustration. Though the project has a lot of potential upside, a deeper dive uncovers a number of glaring warning signs that any prospective investor ought to consider very seriously. Friend of Token is looking to provide a thoughtful and balanced assessment of $WAI. We’ll explore its likely benefits and foreseeable downsides, equipping readers with the knowledge to take smart steps forward.

What is $WAI and Why is it Generating Buzz?

Web3 Ai, a new project that intends to operate at the intersection of web3 technology and artificial intelligence, It provides tools for traders to make better investments, enhance their portfolios, and identify emerging scams. The project has the ambition to use AI to make the user’s trading experience in the decentralized finance (DeFi) ecosystem smarter and faster.

At the time of writing, Web3 Ai is holding the presale on the first stage, with $WAI selling for just $0.0003. With a confirmed listing price of $0.005242, that’s upside of 1,747% potential return on their launch. This ability to achieve exceedingly high potential return is no doubt an important factor driving the buzz around the potential of this token. In addition, Unstaked (related to Web3 AI token) is in Stage 2 of its presale, offering UNSD coins at $0.006695.

How to Buy $WAI

If, after doing their own diligence and deciding it’s the right move, an investor wants to join the $WAI presale, here’s how. Above all, it’s important to focus on security and due diligence every step of the way.

  1. Use a self-custody wallet: Presale participants need a self-custody wallet to buy $WAI tokens. This gives users complete control over their private keys and digital assets.
  2. Choose a recognized wallet: Several recognized self-custody wallets are available, each tied to a specific blockchain project with real-world AI applications.
  3. Verify the official website: Ensure that you are on the official website of Web3 Ai and not a phishing site. Double-check the URL and look for security certificates.

Red Flags and Concerns

Several red flags associated with $WAI warrant serious attention:

  • Promise of high guaranteed returns: The project promises a 1,747% ROI, which is a clear sign of a potentially misleading and unsafe project. Sustainable projects typically avoid guaranteeing such high returns, as market conditions are unpredictable.
  • Unrealistic claims: The project's claims, such as "more than just upside" and "real protection," may be exaggerated or unsubstantiated. Investors should be wary of overly optimistic promises.
  • Lack of transparency: The project's team may be anonymous, which can be a red flag for potential scams or unregulated projects. Knowing who is behind a project is crucial for accountability.
  • Unaudited Contracts: The lack of audited contracts further increases the risk of investing in $WAI. Audits are essential for verifying the security and functionality of the smart contracts that govern the token.

Critical Price Prediction Analysis

Predicting the price of any cryptocurrency is a speculative exercise. If it is $WAI, then the volatility risk is much greater because the project itself is much more volatile. Several factors could influence the price, both positively and negatively:

Potential Positive Influences:

  • Integration with AI infrastructure: The development of essential physical infrastructure, such as GPU clusters, dedicated to training, fine-tuning, and enabling the usage of generative models, could positively impact $WAI's price.
  • Market adoption and demand: The demand for $WAI tokens, driven by the adoption of Web3 Ai's platform for traders to make smarter decisions, optimize portfolios, and detect potential scams, could influence its price.
  • Partnerships and strategic backers: The involvement of ecosystem partners and strategic backers could increase confidence in the project and positively impact $WAI's price.

Potential Negative Influences:

  • Be cautious of unsustainable returns: The presale offers a highly unsustainable upside of over 1,600%, which may lead to an immediate crash.
  • Competition from other AI-related projects: The performance of similar projects, such as Akash, io.net, Bittensor, and Together, which are also applying AI and ZK technologies, could impact $WAI's price.
  • Crypto market trends and sentiment: The overall crypto market trends, sentiment, and regulatory environment could affect $WAI's price.
  • Lack of transparency: Anonymous crypto projects often lack transparency, making it difficult to verify the project's legitimacy, team, and goals.
  • Risk of scams: Anonymous projects are often associated with scams, and investors may lose their funds if the project is not legitimate.
  • Unclear regulatory compliance: Anonymous crypto projects may not comply with regulatory requirements, which can lead to legal issues and penalties.
  • Security risks: Anonymous projects may have security vulnerabilities, which can lead to hacking and theft of funds.

Because of all of this, any realistic price projection for $WAI needs to acknowledge the extremely high likelihood of project failure. If they don’t, the developers could see the price crash. If the project turns out to be a scam, it will plummet to close to zero.

Conclusion

Investing in $WAI is a high-risk endeavor. The opportunity for serious upside is real, but the warning signs about the project should not be overlooked. Before investing, you should do your own research. Alongside this, they need to be aware of the risks attached and only invest money which they can afford to lose. Disclaimer Friend of Token advises you to use caution and make informed decisions with all your crypto investments.