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Over the past few years, regularly occurring crypto scams have burned countless users in the NFT market. Fraudulent activities such as wash trading, the circulation of counterfeit copies and various other swindles within the NFT sector are still an unfortunate reality. Viewing this mess, many have steered clear of the market, despite having a genuine interest in NFTs.
Some data providers have set up tools for NFT analysis, such as fraud analytics, to help users avoid scams. However, most of these providers operate as centralized entities, lacking complete transparency in their processes. Moreover, typical NFT analytics providers rarely invest deeply in identifying fraud, with most of them focused on NFTs’ price history, rarity rankings and other basic data points.
In order to address these challenges, bitsCrunch (BCUT), a new decentralized platform, aims to offer NFT enthusiasts tools to conduct thorough forensic analytics and mitigate the risk of falling victim to scams. Leveraging AI models, bitsCrunch delivers timely, granular and comprehensive analytics, along with all the latest details on NFTs and collections. Importantly, bitsCrunch’s decentralized setup ensures the transparency of its NFT analytics and operations security.
Key Takeaways:
bitsCrunch is a decentralized data platform that provides AI-powered NFT analytics to help creators and investors access the best quality data on NFTs and collections.
The platform uses a delegated proof of stake (DPoS) chain, with several functional nodes — query processors, data enrichers, indicators and contributors — working to deliver the most up-to-date and accurate NFT insights.
bitsCrunch’s native token, BCUT, has multiple uses across the network, including governance and transaction payment. BCUT is available on Bybit as a Spot pair.
What Is bitsCrunch?
bitsCrunch (BCUT) is a decentralized NFT data network that utilizes its DPoS blockchain to leverage AI algorithms, providing comprehensive NFT analytics such as forensic analysis and fraud identification. Users can submit queries to the bitsCrunch network concerning NFTs and collections, and obtain detailed analytics and fraud estimates in return.
The platform is a welcome player in a sphere awash with scams and fraudulent activities. It’s estimated that nearly half of all NFT trade represents wash sales, while every tenth NFT is an outright counterfeit. Using its decentralized network of operators and contributors, bitsCrunch employs AI models to detect fraudulent or suspicious properties related to queried NFTs.
bitsCrunch was founded in Germany in 2019 by four technology professionals: Vijay Pravin Maharajan (CEO), Ashok Varadharajan (CTO), Saravanan Jaichandaran (Chief Data Scientist) and Ajay Prashanth (CMO). The project’s innovative approach to NFT forensic analysis has attracted significant investor interest, with bitsCrunch boasting a solid $6.75 million raised over three funding rounds. Having launched its testnet in mid-2023, bitsCrunch went live with its mainnet on Feb 20, 2024.
The crucial part of bitsCrunch’s value proposition is its heavy use of AI models for NFT analytics, valuation and fraud detection. The platform’s focus on AI and its truly decentralized status make it a unique project in a field where the majority of analytics providers are Web 2.0 centralized entities that mostly deliver basic NFT stats.
One core product based on bitsCrunch’s platform is Unleash NFTs, a web portal that provides comprehensive analytics on leading NFT collections. Some key stats you can obtain on Unleash NFTs include market overview, wash trading analytics and trade volumes, as well as information on top collections, marketplaces, individual NFTs and crypto wallets.
bitsCrunch Key Features
Key features and services of bitsCrunch include the following:
NFT market analytics: Use the platform to get insights on NFTs, collections, wallet and overall market dynamics.
Market insights for NFT lending protocols: As data platforms require accurate and up-to-date information on market trends, NFT sales and potential risks, bitsCrunch provides near real-time information and lets lending protocols accurately valuate NFTs — a crucial aspect for optimal loan collateralization.
Fraud detection: bitsCrunch features a built-in fraud detection system that effectively identifies potential fraud in the NFT market and provides timely alerts.
Compliance solutions:bitsCrunch facilitates the creation of anti-money laundering (AML) and compliance reports for financial organizations, government agencies and other institutional users. Analytics provided by the platform let users verify the legitimacy of NFT and wallet transactions.
How Does bitsCrunch Work?
The bitsCrunch platform leverages a DPoS blockchain that’s made up of several types of nodes, each with its specific functionality.
Operator Nodes
There are two Operator nodes on the chain — Query Processor Nodes and Data Enricher Nodes. The former directly interacts with consumers of the platform, i.e., users who submit queries for NFTs and collections. These nodes process user requests and provide finalized results.
The second type of Operator nodes, Data Enricher Nodes, are the main entities that source data from external blockchains, process it and enrich it with the necessary analytics per the user's request. Data Enrichers interact with Query Processors to receive details of user requests and provide the necessary data. While Query Processors can be thought of as the front end that interacts with users, Data Enrichers are the back end that does the heavy lifting regarding data sourcing and processing.
Additional Nodes
There are also other types of nodes with important functionality on the network. One of these is Indicator nodes, who monitor the external environment — NFT marketplaces, blockchains and other platforms — and signal network participants as to which sources and metrics to scan.
Another type, Contributor nodes, participate on the platform by contributing AI and machine learning (ML) algorithms, programming code and suggestions for network improvement.
Finally, there are Delegator nodes. These consist of users who delegate their funds to the Operator nodes to support network operations.
The platform's data architecture is divided into four layers, per the image below.
The Data Query layer is where users and Data Query nodes interact. Within the Data Processing layer, Data Enrichers carry out their data enrichment operations and pass the results to Query nodes. Data Enrichers also source external data at the Data Acquisition layer. Finally, the fundamental Data Storage layer encompasses all the other layers, and is designed for overall data management and storage.
bitsCrunch Use Cases
While there’s a wide array of use cases enabled by bitsCrunch in the NFT market, some of the major applications include the following.
Market analytics for NFT creators to help them valuate their own NFTs and collections.
Help for blockchain-based game developers and operators in identifying market trends and accurately pricing in-game assets represented by NFTs.
Due diligence/risk assessment for individual and institutional NFT investors and traders.
What Is the bitsCrunch Token (BCUT)?
bitsCrunch’s native token is BCUT, launched on Feb 20, 2024. The token has several important functionalities on the network:
Staking: Functional nodes need to stake BCUT to participate in the platform and earn rewards from their activity. Delegator nodes also use BCUT to back their preferred functional node operators and earn their share of rewards.
Access to services: End users pay in BCUT to submit their NFT queries.
Rewards to functional nodes: Contributor nodes who provide AI and ML models and code to the network are rewarded in BCUT. Likewise, other functional nodes earn BCUT rewards for their own activities.
Governance: BCUT holders can stake funds on the bitsCrunch DAO, which enables them to participate in on-chain governance processes. By staking and becoming a member of the DAO, you can submit platform improvement proposals and vote on them.
BCUT is a supply-capped token, with a maximum and total supply of 1 billion. The token’s supply distribution shares are illustrated in the chart below.
bitsCrunch Price Prediction
As of Feb 26, 2024, the BCUT token has been on the market for just six days and is trading at $0.328. In the token's minimal price history, its all-time low (ATL) and all-time high (ATH) were recorded on Feb 22, 2024, at $0.2847 and Feb 20, 2024, at $0.4906, respectively. The current trading price of BCUT is 33.1% lower than its ATH and 15.3% higher than its ATL. Realistically speaking, BCUT needs a bit more time on the market to let us gauge its price dynamics.
As for long-term forecasts for BCUT, they’re all quite bullish. PricePrediction expects the token to trade at a high of $0.7657 in 2025 and $4.96 in 2030, while DigitalCoinPrice predicts maximum prices of $0.85 in 2025 and $2.48 in 2030.
Is bitsCrunch (BCUT) a Good Investment?
Despite being so new on the market, BCUT might represent a good investment opportunity due to the following factors:
1) bitsCrunch is a unique, truly decentralized NFT analytics solution that leverages AI. Algorithms used by the platform help improve the accuracy of NFT analytics, while decentralization contributes to data transparency and security. Although there are many NFT analytics platforms around, virtually none replicate the precise operational model used by bitsCrunch.
Among the project’s most formidable competitors are players such as the Nansen blockchain analytics firm, Rarity.Tools, Rarity Sniper, DappRadar and Dune. All of these are centralized organizations, and the majority, with Nansen being an exception, make limited or no use of AI in their NFT analytics.
2) The BCUT token has debuted in the highly promising AI category of cryptocurrencies, which crypto investors and venture capitalists continue to target eagerly. The AI crypto niche has experienced tremendous growth over the past couple of years, typically well above average market growth rates. BCUT might benefit over the coming months and years from this category-wide bonanza.
3) In addition to providing various NFT data points and insights, bitsCrunch heavily specializes in fraud detection and the analysis of scams. This pioneering service is likely to attract more NFT creators seeking to safeguard their assets and ensure the integrity of their transactions.
Where to Buy the bitsCrunch Token (BCUT)
The BCUT token is available on Bybit via Spot pair with USDT (BCUT/USDT). Moreover, by buying BCUT on Bybit's Spot market, you get a chance to win a share of the 1,750,000 BCUT + 50,000 USDT prize pool allocated to three campaign events that run until Mar 5, 2024.
Closing Thoughts
bitsCrunch is the first major undertaking in the NFT analytics niche that combines AI technology and blockchain-based decentralization. No longer will you have to rely on centralized analytics tools, whose self-serving interests and corporate goals might compromise the security and transparency of your NFTs and NFT transactions.
The platform will undoubtedly have a significant impact on the NFT field, thanks to its high degree of data transparency. This should help many NFT creators and traders — who often keep their activity to a minimum, or stay away from the market due to scams and fraud — to participate more confidently in NFT trading. bitsCrunch might not be able to do away with all the wash trading, counterfeit trade and other NFT scams, but it truly looks like a platform that will help minimize all of that pernicious activity.
In conclusion, 2024 could herald a big cleanup in the NFT market — thanks to bitsCrunch's AI-powered platform!
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