Last Thursday, Nasdaq-listed company TAO Synergies purchased $10 million worth of TAO tokens to build up its cash reserves. We take a closer look at this surprising change of direction.
TAO Synergies buys nearly 30,000 TAO tokens
In the series of dubious crypto cash reserves, a new competitor officially entered the race at the end of last week. Synaptogenix announced its rebranding as TAO Synergies at the end of June, and this change of direction towards a strategy of acquiring TAO from the Bittensor project was formalized with the purchase of $10 million worth of TAO, or 29,899 tokens.
Joshua Silverman, the company’s executive chairman, explains that further purchases are planned and that this strategy is motivated by a belief in decentralized artificial intelligence:
Our belief in TAO is driven by the expected continued growth and expansion of decentralized AI, which is gaining importance in terms of total market share in AI. We believe that decentralized AI has the potential to eventually surpass centralized AI.”
For James Altucher, head of digital asset cash strategy at TAO Synergies, this is a promising concept that is still in its infancy:
Decentralized AI and TAO remind me of the internet in 1996 or Bitcoin in 2013/2014. Decentralized AI is still in its infancy, but accelerated growth is expected as users seek significant short- and long-term benefits.
While AI and artificial intelligence technologies are certainly promising and herald major technological revolutions, many players are capitalizing on the sector’s buzz for their marketing.
With crypto cash registers also in vogue and some potential pitfalls already highlighted, it seems that we are dealing with a company that has failed to convince investors and is looking to give itself a boost on the stock market.
Since the rebranding, TAO Synergies’ share price has indeed risen by 165%, although it is still down 97% from its all-time high of $362 in October 2021. At the time of writing, TAOX shares are trading at $10.11 each, with a market capitalization of $23.54 million:
It should be noted that TAO Synergies originally specialized in research into treatments for neurodegenerative diseases, including Alzheimer’s disease, a sector that seems far removed from this new activity.
For its part, Bittensor’s TAO is trading at $428, up 1.43% over 24 hours. With a market capitalization of $4 billion, the asset ranks 30th in the cryptocurrency rankings.
