NEAR Protocol is betting big on AI. Really big. But they’re not just testing the waters, they’re going all in with a 1.4 trillion parameter open-source AI model. Investor interest is suggested by the trading volume of NEAR, which has skyrocketed by 39.93% to $184.97 million in the past 24 hours. But here's the question that keeps me up at night: is this a stroke of genius that will catapult Southeast Asia into Web3 stardom, or a potentially devastating gamble that could leave the region playing catch-up?

AI Hype Obscuring Blockchain Fundamentals?

We’ll be honest, the AI hype is everywhere and incredibly loud right now. Every company, non-AI or otherwise, from your local bakery to the multinationals are still slapping “AI-powered” on everything they can. NEAR is no exception. They launched NEAR Intents, which simplifies user interactions in decentralized systems by allowing users to describe desired outcomes, with the protocol handling the optimization. They created the AI Agent Fund to offer capital support for projects using AI and blockchain tech in tandem.

Or are we being distracted by shiny objects? …let’s not forget the fundamental building blocks that make any healthy Web3 ecosystem. So are we giving up decentralization, security, and real community building on the altar of AI?

Think about it. Blockchain’s main promise to the world lies within its trustlessness, transparency and user empowerment. AI systems often operate as black boxes. Because their algorithms are inscrutable, the decisions they make are often questionable and capable of containing bias. Analyst Thomas Reid sees a long-term upward trend as inevitable. He makes a case for a future price target of $6.76, with $3.10 as an important Fibonacci resistance level. He draws attention to a long, slow process of accumulation that lays the groundwork for eventual boom.

Could NEAR's all-in bet on AI unintentionally centralize power within its ecosystem, undermining the very principles Web3 is supposed to uphold? It's a question that demands serious consideration.

Southeast Asia's Tech Sovereignty At Stake?

This program isn’t only beneficial for NEAR, it’s a great step towards fostering Southeast Asia’s technological independence. The region is overflowing with creative mind and technological development. So too are its people, who are ready to build a vibrant Web3 ecosystem that reflects their diverse cultural and economic tapestry.

The uncomfortable truth: the AI space is dominated by Western tech giants. Google, Microsoft, OpenAI – they’ve got the money, the data centers and most importantly the vast brainpower to dominate everything in their path.

  • Google: Massive data sets, unparalleled AI research.
  • Microsoft: Azure cloud infrastructure, deep pockets for investment.
  • OpenAI: Cutting-edge models, first-mover advantage.

To protect its technological sovereignty, Southeast Asia needs to articulate a clearly defined strategy. Otherwise, it runs the danger of being only a consumer of AI solutions controlled by the West. NEAR's AI initiative, led by co-founder Illia Polosukhin, could be a crucial counterweight, a way for the region to develop its own AI capabilities and ensure it doesn't get left behind.

This takes more than creating a fancy AI model. Over and above that, you need a strategic vision to win. Support cross-border, open-source development, including through co-designing with other major stakeholders in the region.

A Race Against Time, Or A Fool's Errand?

NEAR’s resilience appears impressive, currently trading around $2.20. In the last 24 hours, it has increased by 1.35%, and in the last week, it has pumped up by 6.36%. At the time, prominent crypto analyst Ali had identified an inverted head-and-shoulders pattern. That would suggest a 15% upside move to $2.40 if it can successfully break above the neckline resistance. The clock is ticking. NEAR’s AI bet is a time trial. Can they promote a decentralized and open-source AI ecosystem as an alternative vision for Southeast Asia? It has to happen before Western giants entrench their dominance!

Or is this a fool’s errand, a quixotic quest to compete with forces that are just way too strong?

Honestly, I don't know the answer. One thing is clear: the stakes are incredibly high. The future of Southeast Asia’s Web3 now rests in the balance. We need to start asking the tough questions, challenging the conventional wisdom, and demanding a more nuanced conversation about the role of AI in shaping our future. Our future depends on it.

Let's hope NEAR's bet pays off. But let's be prepared for the possibility that it doesn't. For that, in crypto like life, there are no sure things. And blindly clinging to hype is the fastest way to get burned.