AI-Related Crypto Tokens Thrive Despite Nvidia's Stock Decline Amid Executive Sell-Offs
Summary:
Despite Nvidia's 11.08% stock price slump over the past week, Artificial Intelligence (AI) related crypto tokens, notably Fetch.AI (FET) and SingularityNET (AGIX), saw a significant rise of 23.46% and 20.83% respectively. These numbers stand out even more against the recent fall of prominent cryptocurrencies like Bitcoin and Ether. The downturn in Nvidia’s shares followed speculation over its president, Jensen Huang, and other executives, selling off substantial company shares in recent times. The decline coincided with several AI crypto tokens displaying trends similar to Nvidia's. Furthermore, AI-related tokens like OpenAI's Worldcoin (WLD) and Arkham Intelligence's native token, ARKM, also reported considerable increases in their values.
Despite a steep dive in Nvidia's stock value in recent times, crypto tokens associated with artificial intelligence have enjoyed a robust hike. Nvidia, the tech giant manufacturing processors integral to many AI operations, witnessed an 11.08% reduction in its stock price in the last five business days, as per information extracted from Google Finance. Conversely, AI-related crypto coins such as Fetch.AI (FET) and SingularityNET (AGIX) observed a surge of 23.46% and 20.83% respectively in the past week, defying the general downtrend in the larger crypto sphere, as per CoinMarketCap data.
In the meanwhile, Bitcoin (BTC) and Ether (ETH), the two highest market cap cryptocurrencies, have depreciated by 9.17% and 4.23% in the past week. Nvidia's stock has been under strain because of rumored large-scale sell-offs of company shares by President Jensen Huang and other high-ranking executives. The stock value has slid by 11.16% in just five business days.
Official documentation dated June 21 at the United States Securities and Exchange Commission (SEC) reveals that Jensen Huang has sold off over $79.38 million of Nvidia stock since June 13. This has stimulated interest among trading research entities. Global Markets Investor, a trade resource account, tweeted on June 23 that Nvidia executives have been selling off their shares at an unprecedented pace. Further, another research firm indicates that the collective sum of stocks sold by Nvidia executives this year is nearing a billion dollars.
As per Barchart's report, "Nvidia insiders have this year already cashed out more than $796 million.” However, portfolio analysts dispute the significance of this, citing the common practice of executives contracting to sell stocks under predetermined conditions.
According to YChart data, Nvidia's market cap stands at $2.903 trillion as of June 24. This is almost a 13% drop in the previous five business days since its peak at $3.34 trillion. Inline with Nvidia's historic trends, AI crypto tokens have seen synchronized shifts, especially noticeable around Nvidia's Q4 earnings announcement for 2023.
On Feb 21, Nvidia reported Q4 2024 revenue and earnings of $22.1 billion and $12.3 billion respectively. Simultaneously, OpenAI's Worldcoin (WLD) saw it's value surge by 240% over the month while Arkham Intelligence's native token, ARKM, appreciated by 211% during the same timeframe. Other AI tokens too experienced a considerable increase in value last week. At the time of reporting, Worldcoin has risen 9.07% over the past week, trading at a rate of $0.005, while ARKM has increased by 16.34%, trading at $1.96 over the same period. It is critical to note that this article doesn't aim to provide investment advice or make recommendations. Investing and trading inherently carry risks, warranting in-depth research and due diligence on the part of potential investors.
Published At
6/25/2024 5:39:46 AM
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