Recently, the prestigious UK university Imperial College London and the fintech company FluidAI established a strategic relationship. The partnership uses cutting-edge artificial intelligence (AI) technology to identify and address inefficiencies in the market for digital assets.
The main objective of this collaboration is to address the sporadic liquidity problems that are present in the crypto markets. This fragmentation frequently causes flash crashes, price slippage, extreme volatility, and a vulnerability to market manipulation. Contrast this with conventional markets, like the equity market, which have well-established infrastructures and settlement procedures. The CEO of FluidAI, Ahmed Ismail, highlighted the value of liquidity aggregation in the crypto market.
He said, “Liquidity aggregation in crypto is a global financial challenge and it spurred the founding of FluidAI.” He also emphasised how cryptocurrency lacks the low-latency technologies seen in conventional finance solutions and is decentralised and cloud-based. Ismail asserts that AI can “eliminate the latency through prediction,” resulting in the market’s best bid and ask pricing.
In order to improve the “tokenized market” for a variety of stakeholders, including institutions, trading platforms, and retail investors, the university’s AI lab, I-X, will collaborate with FluidAI.The Centre for Cryptocurrency Research and Engineering is located at Imperial College London and is devoted to research and real-world applications of blockchain and cryptocurrency technologies.
In addition to announcing the cooperation at the same time, the UK government also made a point of demonstrating its dedication to AI by announcing a £100 million investment plan for the creation of AI chips.This action fits with a worldwide trend in which many countries are competing for resources to support and promote AI technologies. Notably, this collaboration is the first-known AI project at a renowned university that uses cryptocurrency as a source of partial funding. The future effects of their collaboration excite both FluidAI and Imperial College London. They think that by pooling their knowledge, they can create a trading environment for digital assets that is more efficient and stable, which will be advantageous to many different parties involved in the cryptocurrency industry.