Author: 0xTodd Source: X, @0x_Todd
Recently, both the projects of $IO and $ATH in the AI concept have consecutively launched their TGE, sparking some interesting discussions.
In essence, this is a very classic business model:
Imagine a scenario where on the left hand side, there are some AI startups along with some rendering companies for gaming. These are not the well-established giants like openAI, but rather startups. On the right hand side, there are individuals with a surplus of graphics cards like the 4090, 3090, A100, and H100, looking to utilize these idle resources.
The AI startups utilize these surplus graphics cards, providing individuals with graphics cards an opportunity for profit at a lower cost than traditional quotes. Therefore, if there is a platform that connects these demands and resources, a classic platform business model is born.
This is where @ionet and @AethirCloud come in, recognizing this market opportunity and preparing to create a platform that links idle graphics cards to AI or rendering companies. This initiative holds significance as these AI companies may not have the capability to procure a large number of graphics cards themselves.
These AI companies prefer not to purchase a large number of graphics cards due to the high costs involved. They prefer the flexibility of being able to rent graphics cards as needed. Additionally, graphics cards are in high demand internationally, with some even facing restrictions. Consequently, many companies are forced to rely on third-party intermediaries abroad, incurring significant costs and entering a gray area. Therefore, a decentralized facility becomes crucial, addressing the market demand identified by the IO and Aethir projects.
However, the challenge of the “chicken or egg” situation must be resolved. AI startups are willing to join if they believe there are ample graphics card resources on the platform, while individuals with graphics cards are willing to list them on the platform if they anticipate a high volume of orders.
If the platform starts from scratch without many graphics cards or companies, the launch will be extremely challenging. This is why these companies or platforms require Crypto, as it can help break this cycle.
IO has chosen the path of having the “chicken” first. Even without orders initially, token subsidies can help accumulate graphics cards. They initiated a ignition plan, with peak periods seeing tens of thousands of graphics cards listed on IO.
This highlights the significance of a decentralized computing power platform with a token model. Some may question whether these tokens are useful beyond subsidies. IO and Aethir have both independently opted for a conventional and effective approach. While their platforms will support fiat or stablecoin payments in the future, they also provide the option to pay with IO tokens or ATH tokens, reducing some fees.
This is a strategic decision, allowing users the choice to use their tokens while adding functionality to their own tokens. Even a 2%, 3%, or 5% discount can incentivize users to hold onto these tokens, regardless of their future monetization potential, which is beneficial for diversifying tokens.
In terms of ecosystem development, IO and Aethir have slightly differing approaches. Aethir has adopted a unique strategy as there are numerous AI computing platforms in the market, possibly exceeding 20. How do they gain a competitive edge in this crowded space?
Aethir previously sold a virtual mining machine called CheckerNode, followed by the Edge mining machine. This approach has been highly effective in maintaining a strong community base. When users have sunk costs in your platform, they are more likely to focus on the community and less likely to leave.
Whether purchasing the virtual mining machine CheckerNode or the physical Edge mining machine, once sold, users are less likely to migrate to other platforms. Thus, in a bullish market, timing is everything, and Aethir has adopted a strategy akin to enclosure, bringing everyone into the community first, which has proven to be an effective tactic.
What is CheckerNode used for? Aethir envisions a scenario where idle graphics cards, possibly from various locations worldwide, may have stability issues compared to data centers, a common concern for those familiar with network architecture.
To address this, a new role was introduced. In addition to demand and supply, a third party inspector continually monitors the status of the graphics cards and order processing to earn tokens.
Within the tokenomics framework, ATH allocates a portion of tokens for the inspectors. CheckerNode, a virtual mining machine, attracted many early adopters to the ecosystem, proving to be an effective market strategy. Market response has been positive, with CheckerNode reportedly selling over a billion dollars on Arb according to official data, representing a significant achievement.
Furthermore, many users prefer physical mining machines, leading Aethir to introduce the Edge mining machine. These physical mining machines can be purchased and placed at home, catering to different customer needs. By offering these products, Aethir has gained a competitive advantage in the market.
Both projects are computing power platform projects, making collaboration with external partners easier as they aim to standardize products like graphics cards in the future. This is why companies like GPU computing standardization firm Dbunker @Dbunker_Network can collaborate with both companies. Dealing with standardized products like graphics cards, often referred to as the new oil of the modern era, allows for a broad scope of collaboration.
One key difference is that IO is part of the SOL ecosystem, with Aptos also investing in it, making integration with Aptos highly likely. On the other hand, Aethir primarily operates on Ethereum and Arbitrum, with ATH tokens on Ethereum and CheckerNode on Arbitrum. Thus, in terms of ecosystem, these projects subtly delineate their territories.
Interestingly, both projects have also collaborated with each other, even engaging in an intimate “token swap,” turning the initially ambiguous competition into a state of peace and harmony.
Lastly, the ticker symbols chosen by both projects are intriguing. IO stands for Input & Output, a classic acronym used in computing and domain suffixes. On the other hand, ATH stands for All Time High, a common term in crypto, subtly hinting at the differences between the two projects.
