The U.S. Commodity Futures Trading Commission (CFTC) has warned cryptocurrency investors not to rely on artificial intelligence (AI) trading bots for massive profits in 2024.
In a recent statement, the CFTC advised investors to be wary of exaggerated marketing claims about AI bots delivering astronomical yields. CFTC’s Melanie Devoe said fraudsters are exploiting social media hype and novice investors should research providers before trusting money to trading bots.
This warning comes after several states accused YieldTrust.ai of operating a Ponzi scheme in 2023, alleging its AI bot didn’t exist. Major exchanges explore AI applications, like Bitget’s advisor bot, but the technology’s limitations persist.
ChatGPT told Cointelegraph that AI could aid crypto analysis and strategies but couldn’t predict prices. The CFTC reiterates that despite surging popularity, AI cannot foresee the future and investors should avoid its empty promises this year.
