What Are the Key Risks of Investing in AI Agent Tokens?
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Investing in AI agent tokens carries several advanced risks:
Execution Risk: Smart contracts may malfunction or produce unintended outcomes.
Liquidity Risk: Many AI tokens have thin markets, amplifying volatility.
Model Risk: AI agents may rely on faulty datasets or algorithms, causing losses.
Concentration Risk: Whales can manipulate markets, as large holders can move the token price dramatically.
Regulatory Risk: Many jurisdictions are unclear on whether AI agent tokens are securities or utility tokens.
Pro Tip: Risk management requires portfolio diversification, monitoring on-chain metrics, and understanding agent performance analytics.