Author: 0xTodd Source: X, @0x_Todd
Recently, both projects $IO and $ATH in the AI concept have consecutively launched their TGEs, sparking some interesting discussions.
In essence, this represents a very classic business model:
Imagine a scenario where on one hand, there are some AI startups and rendering companies for games. I’m referring to startups, not the well-established giants like openAI. On the other hand, there are individuals with a surplus of graphics cards such as 4090, 3090, A100, H100, eager to put these idle resources to use.
The AI startups leverage these surplus graphics cards, providing a source of income for those who own them while offering lower rates compared to traditional quotes. If there’s a platform that can connect these demands and resources, a classic platform business model is born.
This is where platforms like @ionet and @AethirCloud come in, recognizing this market opportunity and aiming to bridge the gap by matching idle graphics cards with AI or rendering companies. This is significant because these AI companies may lack the capacity to procure a large number of graphics cards themselves.
Firstly, AI companies prefer not to purchase a large quantity of graphics cards due to high costs, opting instead for flexible rental options. Additionally, the global shortage of graphics cards, and even restrictions on their import, have forced many companies to rely on overseas intermediaries, resulting in increased costs and gray areas. Therefore, a decentralized facility becomes crucial, a market demand identified by projects like IO and Aethir.
However, the challenge remains in addressing the “chicken or egg” dilemma. AI startups are willing to join if they see a substantial number of graphics card resources on the platform, while those with graphics cards are willing to participate if they anticipate a high volume of orders.
Starting a platform from scratch without a significant number of graphics cards and companies can be extremely challenging. This is why these companies or platforms turn to Crypto, as it can help break this cycle.
IO has taken the approach of having the “chicken” first. It doesn’t matter if there are no orders initially, token subsidies can accumulate graphics cards. They initiated a spark plan, with peak periods seeing hundreds of thousands of graphics cards connected to IO.
This highlights the significance of decentralized computing platforms with token models. Some may question the relevance of using tokens solely for subsidies, but it provides additional functionality. Offering options to pay with IO or ATH tokens alongside fiat or stablecoins not only reduces fees but also encourages users to hold these tokens, contributing to diversification.
In terms of ecosystem development, IO and Aethir have slightly different strategies. Aethir has adopted a unique approach given the saturation of AI classification platforms, with possibly over 20 in existence. How can they gain a competitive edge in this crowded space?
Aethir introduced CheckerNode, a virtual mining machine, followed by Edge mining machines, effectively solidifying their community base. By creating a sunk cost for users early on, they increase community engagement and retention, a strategic move during bull markets.
CheckerNode serves a specific purpose within Aethir’s ecosystem. It addresses the potential instability of idle graphics cards sourced globally, a drawback compared to traditional data centers. Introducing a new role – the Checker – to continuously monitor the performance of graphics cards and order processing in exchange for tokens.
ATH allocates a portion of token distribution to these checkers in its tokenomics. CheckerNode, as a virtual mining machine, attracted early adopters to the ecosystem, proving to be a successful market strategy. The market response has been positive, with CheckerNode reportedly selling over a billion dollars on Arb according to official data, a remarkable achievement.
Additionally, recognizing the demand for physical mining machines, Aethir introduced Edge mining machines to cater to different customer segments. This diversified approach has given Aethir a competitive advantage in the market.
Both projects being computational power platforms make them compatible with external partners, as they deal with standardized products like graphics cards. This is why GPU computational standardization companies like Dbunker @Dbunker_Network can collaborate with both IO and Aethir. With graphics cards being likened to the “oil of the new era,” handling such standardized products expands their collaboration opportunities.
One notable difference is that IO operates within the SOL ecosystem, with a potential link to Aptos, while Aethir primarily operates on Ethereum and Arbitrum, with ATH tokens on Ethereum and CheckerNode on Arbitrum. This delineates their ecosystem territories to some extent.
Interestingly, despite their individual focuses, both projects have collaborated with each other, even engaging in an intimate “token swap,” transforming what was initially a vague competition into a harmonious state of peace and love.
Lastly, the choice of tickers for both projects is intriguing – IO representing the abbreviation for “input & output” in computing, as well as a classic domain suffix. On the other hand, ATH stands for “all-time high,” a common term in crypto, subtly hinting at the distinctions between the two projects.