AI-Related Crypto Tokens Plunge Amid Nvidia Antitrust Probe

AI-focused cryptocurrencies faced significant losses following news of China’s antitrust investigation into Nvidia, a leader in AI chip production. The market capitalization for AI-related tokens dropped 14.6% in 24 hours, reaching $40.56 billion as of press time.

Major Tokens Take a Hit

Several prominent AI coins experienced steep declines:

• NEAR Protocol, the largest AI token by market cap, dropped 8.6%, trading at $6.65 per coin.
• Render, Akash Network, The Graph, and Fetch.ai saw losses of 9.7%, 9.6%, 8.6%, and 8%, respectively.
• Other tokens, including Bittensor, Arkham, Livepeer, and Flux, faced declines ranging from 12% to 16%.

Nvidia Probe Sparks Market Concern

The downturn followed reports that China’s State Administration for Market Regulation is investigating Nvidia for potential violations of anti-monopoly laws. Regulators have accused Nvidia of breaching commitments related to its 2020 acquisition of Mellanox Technologies, an Israeli chip design company.

The investigation could have significant implications for Nvidia, which derives about 15% of its revenue from Chinese customers. On Tuesday, Nvidia’s shares fell 2.55%, closing at $138.81 in New York markets.

Historical Sensitivity to Nvidia News