IMPACT OF THE LAUNCH OF CHATGPT ON AI TOKEN RETURNS AND INVESTOR PREFERENCES

This study examines the impact of the launch of ChatGPT on November 30, 2022, on returns from cryptocurrency tokens based on artificial intelligence (AI) and investor behavior dynamics. The study employs Granger causality analysis to examine Bitcoin (BTC), Ethereum (ETH), and four significant AI tokens (FET, GRT, INJ, and NEAR). The empirical analysis encompasses three distinct periods: the full sample, the pre-ChatGPT launch, and the post-ChatGPT launch. Results from the pre-launch period reveal limited causal linkages, predominantly characterized by BTC\\\'s unidirectional influence on FET and internal AI token interactions. Post-launch results demonstrate intensified BTC dominance over AI tokens, including bidirectional causality between BTC and GRT and unidirectional causality from BTC to FET and NEAR. Additionally, stronger interconnectedness emerged among AI tokens, particularly bidirectional causality between FET and GRT. The study concludes that the launch of ChatGPT significantly changed the structure of the cryptocurrency market, enhancing BTC’s impact on AI tokens and fostering a greater interdependence among them.