Exclusive Interview with bitsCrunch: AI-Enhanced Decentralized NFT Data Platform

Compiled by: Felix, PANews (with some modifications)

Coinlist announced last week that it will start the token sale of BitsCrunch (BCUT) at 1:00 AM Beijing time on December 15th. The token sale will offer 60 million BCUT tokens at a price of $0.055 per token, with an additional 5 million BCUT tokens reserved for rewards. Furthermore, an additional 10 million BCUT tokens (1% of the total supply) may be made available for purchase during the community sale period at the discretion of BitsCrunch.

Coinlist conducted an interview with the BitsCrunch team to gain detailed insights into the real-world problems the project aims to solve, its differences from other Web3 analytics platforms (such as Glassnode, Nansen, Chainalysis, and Messari), how users can protect themselves from NFT fraud, the applications and growth strategies of BCUT tokens, and the upcoming community sale on CoinList.

What is bitsCrunch and what problems does it solve?

The crypto market currently has thousands of cryptocurrencies, hundreds of blockchain platforms, millions of smart contracts, and millions of NFTs. However, the rapid growth of the crypto industry also means that it harbors a large number of scammers and exploiters who seek to manipulate the system and extract profits. Leveraging an understanding of blockchain technology, they maliciously inflate the trading volume or price of NFTs and cryptocurrencies to lure users into scams.

While all malicious activities are recorded on the blockchain, it is difficult for users to discern and identify all fraudulent practices. BitsCrunch aims to analyze all NFT transactions, automatically detect malicious behavior using AI/ML, and make it accessible to users. While the initial focus of BitsCrunch is on NFTs, it will eventually expand its monitoring to cryptocurrencies.

bitsCrunch is an AI-driven decentralized NFT data platform that provides analysis and forensic data for NFTs, wallets, and other crypto assets on public chains. bitsCrunch is accessible through a user-friendly API, enabling developers to build NFT applications (dApps). BitsCrunch is committed to building a community-driven ecosystem that allows individuals to contribute code or content to continuously enhance and expand the network's capabilities.

bitsCrunch provides rich NFT data visualization, enabling users to:

Buy, sell, or hold NFTs
Understand NFT market value, collectibility, and more
Differentiate between genuine trading volume and fake wash trading volume
Find fair prices and originality of NFTs

Reference: bitsCrunch official website

What are the use cases of BCUT tokens?

BitsCrunch token (BCUT) is the native utility token of the bitsCrunch network, primarily designed to facilitate the smooth operation of the network. The security and efficient operation of the bitsCrunch ecosystem depend on the fusion of cryptographic technology and economic incentives, aimed at promoting the adoption and maintenance of network security. The core functions and utilities of the token include:

Incentivization: The token serves as an incentive tool to encourage operators, delegates, and contributors to stake their tokens.
Network security: Through mechanisms such as staking, BCUT tokens can enhance security measures, making malicious activities costly and protecting the integrity of the network.
Independence: The existence of the token ensures the autonomous operation of the network, reducing reliance on external entities or tokens. This isolation protects the ecosystem from the volatility of external tokens, directly aligns rewards with sustainable actions, and tightly links the value and functionality of the token with the network's goals and performance.
Economic design: The introduction of BCUT tokens enables the network to flexibly shape an economic framework that meets the unique needs and spirit of the ecosystem. For example, managing the issuance of BCUT allows the DAO to adjust its availability, ensuring alignment with growth objectives. Initially, the DAO can incentivize early adopters through more generous allocations, then gradually adjust the issuance rate to manage inflation, or introduce deflationary strategies (such as token burning) to increase the token's value as the network develops. All these decisions will be handled through governance processes.
Decentralized governance: The token promotes decentralized governance, empowering token holders to propose and vote on changes and proposals to the network protocol.
Discount mechanism: Data consumers can receive discounts by staking tokens, incentivizing interaction with the network.

How does bitsCrunch ensure the authenticity of NFT listings and prevent fraud?

bitsCrunch employs several advanced AI/ML technologies to ensure the authenticity of NFT listings and prevent fraudulent activities:

The AI-driven NFT authenticity detector (beta version) helps confirm the authenticity and uniqueness of NFTs, assisting users in distinguishing original works from potential duplicates or forgeries. This tool is crucial for maintaining the integrity and value of NFTs in the NFT market.

Additionally, through partnerships with NFT markets, bitsCrunch can provide real-time analysis and verification to ensure that only genuine and compliant NFTs are listed.

What are wash trading and what insights can bitsCrunch's wash trading index provide?

Wash trading (similar to pump and dump) is a form of market manipulation where investors simultaneously buy and sell the same financial instrument. This creates an artificial impression in the market that trading volume has increased, but there has been no actual change in ownership. In the crypto space, wash trading often involves false hype or exaggeration of asset value.

BitsCrunch's wash trading index provides an overall level of wash trading in the NFT market:

For market analysts and participants, the wash trading index provides valuable data for understanding market trends and making decisions.
For investors, the index is a tool to assess the compliance of trading activities, enabling them to make decisions based on genuine market behavior.

How can artists and creators benefit from the data provided by bitsCrunch?

In the digital art market, the success of artists and creators depends not only on creativity but also on their ability to adapt to the complexity of the NFT space, making data crucial. bitsCrunch offers a range of data-driven insights and tools that can enhance the capabilities of artists and creators in the blockchain ecosystem.

Market insights: bitsCrunch provides data on market trends to help artists and creators understand which types of NFTs are popular or in demand.
Pricing strategies: Insights into pricing trends can help artists appropriately price their works.
Fraud detection: Tools to identify counterfeit and plagiarized NFTs can protect the originality and value of creators' works.
Audience engagement: Data on buyer preferences and behavior can provide information for marketing and community engagement strategies.

By leveraging the insights and tools provided by bitsCrunch, artists and creators in the NFT space can make wiser decisions, protect their intellectual property, and effectively engage with their audience.

What advice do you have for retail investors who are new to the NFT space to protect themselves from potential fraud?

1. Research: Understand NFTs and blockchain technology

Before trading NFTs, it is crucial to understand how NFTs work and the blockchain technology that supports them. Take the time to learn about different types of NFTs, the minting process, and their various use cases. Utilize reliable sources such as educational blogs, online courses, and tutorials. Mastering the technology and potential applications of NFTs and blockchain can not only enhance discernment but also help identify compliant projects and avoid potential scams.

2. Use reputable platforms: Engage in trusted markets

When buying, selling, or trading NFTs, choosing the right platform is essential. Opt for well-known and reputable NFT markets, which typically have secure and reliable transaction records and can provide better security measures to safeguard assets. It is advisable to read reviews and gather community feedback on these platforms, paying attention to any danger signals or recurring issues reported by other users. The reputation of a market in the crypto community often serves as a strong indicator of its credibility and reliability.

3. Verify Authenticity: Ensure Compliance of NFTs

One of the key steps in trading NFTs is to verify their authenticity and originality before making a purchase. This involves researching the history of the NFT, including checking the creation date, transaction history, and the background of the creator. Many platforms provide tools or services to verify the authenticity of NFTs, helping to identify genuine items and avoid counterfeits. This requires taking the time to conduct due diligence.

4. Beware of Hype: Don't Be Influenced by Market Sentiment

The NFT market may be highly speculative and often driven by hype and excitement. While there are profit opportunities, there are also risks, especially for those new to the field. Be cautious of projects that are heavily promoted or promise unrealistic returns, as these may be potential signs of scams. Avoid making impulsive investment decisions due to FOMO; take a step back, critically evaluate the long-term value and compliance of NFTs. Making wise and rational decisions in the crowded NFT space, rather than reacting to market hype, is key to ensuring sound investments.

What are your thoughts on the current state of the blockchain analytics field, especially NFT analytics? How do you view the industry's development?

Currently, the blockchain analytics field has several major players, each with its unique strengths. Companies like Chainalysis and Elliptic have robust mechanisms for monitoring transactions and anti-money laundering (AML) compliance. In contrast, platforms like Glassnode, Nansen, and Messari excel in providing in-depth market analysis and blockchain data insights.

There are few entities focusing specifically on NFT analytics, which is where bitsCrunch has a unique advantage. While established players have a foundation in blockchain analytics, they often focus on broader market trends and token analysis, leaving a gap in the NFT space. This also presents an opportunity for bitsCrunch to become a leader, especially by offering targeted services such as verifying NFT authenticity, detecting fraudulent trades, and providing valuation reports tailored to NFTs.

The future of this field (including blockchain and NFT analytics) may depend on the ability to provide comprehensive data analysis combining AI and machine learning, offering deeper insights and predictive analysis. As regulations around NFTs and crypto assets tighten, there will be an increasing demand for analytics platforms that can adapt to regulatory environments while providing valuable market insights. Additionally, as the NFT market matures, investors and creators will seek more detailed and in-depth analytical data, not just surface-level trading data.

What is the best way to engage with the bitsCrunch community?

The best way to become an active participant in the bitsCrunch community is to first understand bitsCrunch. Visit the official website, read the whitepaper, and explore resources that clarify the project's objectives and the problems it seeks to address in the blockchain and NFT space.

Engage and contribute: There are various ways to participate in the bitsCrunch community, such as sharing insights, providing feedback, and participating in project initiatives that align with your expertise.

Utilize skills: If you have skills and expertise that align with bitsCrunch's goals (such as technical knowledge, marketing acumen, or community leadership), consider making a more direct contribution. This may involve volunteering for various initiatives, creating educational content, or fostering community discussions.

How do you plan to build a community around the bitsCrunch ecosystem and attract members?

Strategies to further build a community around the bitsCrunch ecosystem and attract members include:

Hackathons: Planning hackathons where participants use the bitsCrunch platform to develop innovative solutions. Hackathons are not only a great way to foster community innovation but also a strategy to discover talent and potential future collaborators. These activities can focus on various aspects of blockchain and NFT analytics, encouraging the community to explore creative uses of bitsCrunch tools and services.

Grant Programs: Implementing grant programs is another key strategy. These grants can fund developers, creators, and researchers working on projects that add value to the bitsCrunch ecosystem. By providing financial support for these projects, it helps promote community growth and innovation potential. Grants can contribute to the ecosystem's development through new tool integrations, research papers, or other creative projects.

Governance and DAO: Implementing DAO governance is a significant step towards democratizing the ecosystem. DAO governance allows token holders to have a voice in key decisions ranging from project development direction to fund allocation. Token holders can vote on proposals and participate in governance, fostering a sense of ownership and active community participation.

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