Token / AI Score

The AI Score system is designed to evaluate the potential of tokens based on a combination of key factors, providing users with a simple yet powerful indicator of whether a token is likely to perform well or poorly in the near future. Here's how it works:

Step 1: Data Collection

The system gathers data from three main categories:

  1. Unusual Buy Data: This includes metrics like the volume of unusual buys, the total value of tokens held, and the number of wallets making these unusual buys.

  2. Smart Traders Data: This focuses on the behavior of top traders, including how many of them are buying the token, their realized profits, the value of tokens they hold, and their net buying or selling activity.

  3. Token Data: This considers broader token metrics, such as the fully diluted valuation (FDV) and recent price changes.

Step 2: Data Normalization

To ensure fairness, the AI system normalizes all the collected data. This means converting each metric into a score between 0 and 100, making it easier to compare different tokens on the same scale.

Step 3: Scoring Individual Criteria

Each metric is then assigned a score based on its performance relative to other tokens. For example, a token with a high volume of unusual buys or many smart traders buying it would score higher. The AI also adjusts scores for metrics like realized profits, where a lower percentage (indicating less profit-taking) would result in a higher score.

Step 4: Weighting and Combining Scores

The AI system assigns different weights to each category based on its importance. For instance, data from Smart Traders might carry more weight because their actions are more likely to indicate a token's potential. The system then combines all these weighted scores to produce a final AI Score for each token.

Step 5: AI-Driven Classification

Finally, the AI system categorizes each token based on its total score into one of five sentiment categories: Strong Bearish, Bearish, Neutral, Bullish, or Strong Bullish. This classification helps users quickly understand the likely performance of the token, guiding their trading decisions.

Why AI?

The use of AI is crucial in this system because it allows for real-time data processing, adjusting scores based on the latest market conditions. AI continuously learns from past data, improving its ability to predict token performance over time. This dynamic approach ensures that users receive the most accurate and timely insights, helping them make informed trading decisions.

In essence, the AI Score system simplifies complex data into a single, easy-to-understand score, empowering traders with actionable insights without needing to delve into the intricate details themselves.

Last updated