Crypto Storms: Unmasking Risk with AI-Driven Investigations

Cryptocurrencies are all the rage these days, both for investors and academics. To make smart investment decisions, you need to understand what affects cryptocurrency prices and which ones are risky. This study dives into historical data and uses AI to figure out what factors influence a cryptocurrency's price and to spot the risky ones. Researchers took a look at the past data of various cryptocurrencies and found links between their price and other factors. They also grouped cryptocurrencies based on their unique features to give investors a better picture.

Here's what they found: quite a few cryptocurrencies (39%) vanished from the market, while only a handful (10%) lasted more than 1, 000 days. Prices were strongly tied to the total and maximum supply, showing a negative impact, and weakly tied to the 24-hour trading volume, showing a positive impact. By using machine learning, they could predict if a cryptocurrency was risky with a success rate of 76%.

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