AI crypto trading platform sells out initial tokens in three hours

A platform for trading cryptocurrency that uses artificial intelligence (AI) to assist trades has seen its first public Initial Token Offering (ITO) sell out in just three hours.

The AI crypto trading platform Spiking sold 24 million SPIKE tokens, equivalent to $240,000, which are similar to traditional shares but created using blockchain technology.

This kind of ITO is becoming an increasingly popular way to raise capital for blockchain-based companies, although many take considerably longer to sell out.

For Spiking, it involved would-be token owners purchasing tokens using the cryptocurrency Etherium. It follows the platform raising $30m in October through a private sale.

These SPIKE tokens will be used as a trading pool for users, with Spiking taking an 8% commission of the profit generated.

Spiking aims to improve cryptocurrency trading by integrating artificial intelligence into the process.

This allows users to identify and follow so-called ‘Whales’, which are key people in the cryptocurrency space who either have large pools of cryptocurrency, are mining in significant quantities or are responsible for the sale of cryptocurrency tokens.

Users can then monitor and mimic the behaviour of Whales in real-time, allowing them to quickly respond to market conditions and changes. This can be performed automatically using Spiking’s AI, allowing a user to take a somewhat hands-off approach to their portfolio.

This is especially important for cryptocurrency traders, as the vast majority of cryptocurrencies remain extremely volatile, meaning that although there is significant potential for financial gain, those unfamiliar with the chaotic market can lose significant amounts.

The system also rewards Whales, by giving them a 21% commission fee from profits generated from their followers. For the followers themselves, this means they take 71% of the profit from their tokens, in addition to their initial capital.

Having completed phase I of its ITO, Spiking will commence phase II on 19 December, and phase III on 26 December.