DEEP DIVE INTO CRYPTO & AI: THE FUTURE OF DECENTRALIZED DATA WITH DEEP3 LABS

TODAY'S HIGHLIGHTS:

• Deep3 Labs shares how they're using AI to revolutionize crypto trading with a 92.8% accurate token recommendation system

• Bitcoin scarcity is intensifying with potentially one-third of all tokens permanently lost, driving value predictions up to millions per coin

• The intersection of AI and blockchain is creating new paradigms for data monetization and user empowerment

• Grok 4 delivers "PhD-level answers across multiple domains simultaneously" for just $30/month

• The AI Biz Hour infrastructure expands with enterprise-level email solutions

INTRODUCTION:

Welcome to the AI Biz Hour newsletter, where hosts John Allen and Andy Wergedal explore the cutting edge of AI business innovation. This week, we welcomed a special guest from Deep3 Labs, a pioneering company at the intersection of cryptocurrency and AI. The conversation revealed how decentralized technologies are evolving beyond financial applications to reshape how we think about data ownership, AI training, and user experience. From Bitcoin's future to frictionless data monetization, today's episode offered valuable insights into the emerging Web3 landscape and how AI is accelerating its development.

MAIN INSIGHTS:

THE STATE OF CRYPTOCURRENCY: BITCOIN SCARCITY & FUTURE VALUE

Bitcoin continues to reach new all-time highs, recently surpassing $100,000 per coin, with positive legislation supporting industry growth. Our guest from Deep3 Labs shared a startling reality about Bitcoin's fixed supply of 21 million coins:

"There's some estimates of as much as a third of that supply is already permanently lost. So now you're down to the teens in terms of that."

This scarcity is amplified by major holders like Michael Saylor (who owns approximately 2.8% of all Bitcoin) and governments actively accumulating coins. As our guest noted, "If you have your hands on 0.1 Bitcoin, you are in the catbird seat."

The prospect of Bitcoin reaching extraordinary values seems increasingly plausible: "There's no counterargument against it ever hitting 10 million a coin," suggesting that despite the current high price point, the opportunity hasn't been missed.

John Allen recalled when Bitcoin was just $0.11, highlighting the challenges of early adoption: "I remember when it was 11 cents, and I was trying to figure out how to buy it because it wasn't easy." He mentioned that many early adopters have now lost access to their holdings due to misplaced storage devices or forgotten credentials.

DEEP3 LABS: REVOLUTIONIZING DATA MONETIZATION IN WEB3

Deep3 Labs stands out in the crypto space with a team of seasoned professionals from Google, Apple, Fidelity, MIT, and Stanford, bringing decades of experience in data science and machine learning. Their approach to Web3 differs significantly from typical crypto startups led by young entrepreneurs with "lucrative but narrow ideas."

The company's genesis came when their representative was working at Fidelity in 2012 and saw "how much money H&R Block paid Google for one click on their ad during tax season." This revelation highlighted the massive opportunity to disintermediate how user data is monetized online.

Deep3's powerful analogy clarifies the current data economy problem: "It's like if Toyota didn't have to pay for steel and plastic. It's the most wild supply chain that I think has ever been created to date."

Their solution focuses on frictionless data monetization. Unlike previous approaches that expected users to actively manage their data, Deep3's system rewards token holders automatically:

"If you own the Deep3 token and you do what's called staking—which is a one-time action, literally click a few buttons and you're done—you will start earning a share of all the revenue that Deep3 creates over time."

This creates a more equitable digital economy: "We can build all the same technologies that have made Web2 what it is, but we can also decentralize the economy around it so average people can get a share of that increasingly valuable pie."

JanCarlos and the Decision Clarity Framework

A major highlight of the show was the introduction of JanCarlos (@jancarlosbtc), who will be sponsoring the AI Biz Hour for the next four weeks. He introduced his powerful Decision Clarity Framework, a system designed to help individuals and businesses use AI to navigate complexity and make better, faster decisions.

JanCarlos shared that the framework was born from his personal journey with autism. Faced with challenges in communication and overwhelming sensory input from a young age, he was forced to develop meticulous systems to understand the world and make clear decisions. This personal experience became the foundation for a professional framework that anyone can use.

The Four Pillars of the Framework:

JanCarlos's system is broken down into four key stages, which he will cover in weekly "micro-sessions" leading up to a full workshop:

1. Problem Clarity (Week 1) July 8th: Moving beyond surface-level issues to define the root cause of a problem. If you ask AI the wrong questions, it will only amplify your confusion.

2. Resource Clarity (Week 2) July 15th: Taking stock of the assets, skills, and tools you have at your disposal to solve the defined problem.

3. Pathway Clarity (Week 3) July 22: Analyzing your options to determine the most efficient path forward and setting clear priorities.

4. Decision Clarity (The Final Workshop) July 29th: Integrating the first three pillars to make a confident, well-informed, and decisive choice.

AI-POWERED CRYPTO TRADING: THE RECOMMENDATION ENGINE

Deep3 Labs has created what they describe as the first token recommendation engine for crypto, achieving remarkable accuracy:

"When we make a recommendation to a trader—buy this token—orange is right 92.8% of the time."

This high accuracy stems from a fundamental difference in their approach. While traditional financial markets are notoriously difficult to predict, Deep3's system focuses on predicting human behavior rather than market movements:

"We're not actually predicting markets. We're predicting the underlying behavior of the market participants, and humans are very predictable."

A key advantage of blockchain technology is the transparency and accessibility of transaction data:

"If you're a machine learning engineer in Web2, you have access to what online users do on your platform and only your platform. If you're doing the same thing in Web3, you have access to user data across every platform connected to that blockchain."

This comprehensive data access allows Deep3 to analyze trading patterns across the entire ecosystem, providing insights that would be impossible in traditional financial markets.

GROK 4: THE NEW FRONTIER IN AI CAPABILITIES

Andy shared his excitement about the recently released Grok 4, highlighting its remarkable capabilities:

"With Grok 4, you get a PhD-level answer from a PhD-level source that has PhD-level results on every single topic simultaneously. You could ask it a physics question and then ask it a materials question from chemistry and say, 'If we use this material to do that, would that do better or worse?' And it knows."

The AI's versatility and depth of knowledge across domains represents a significant leap forward, demonstrating what John describes as "just amazing capability that we now have at our fingertips."

This multidisciplinary knowledge allows users to explore complex topics that would typically require consulting multiple experts, all through a single interface for $30/month.

HOW AI IS ACCELERATING WEB3 DEVELOPMENT

The rise of Large Language Models (LLMs) has significantly accelerated development in the Web3 space. Deep3 noted that their engineers are "jamming out code way faster than we ever imagined a couple years ago," creating new challenges in keeping design teams aligned with rapid development.

More importantly, LLMs have transformed their approach to making machine learning accessible:

"Our ultimate vision is that anyone can be building Web3 companies and come to a platform with no machine learning expertise and build the kinds of assets that entire teams of people in Web2 needed to do."

This democratization means "a guy in his basement can, in theory, build a competitor to YouTube," using no-code approaches powered by foundational LLMs.

The timeline impact has been dramatic: "We had a piece of our roadmap called AutoML that went from a two-year estimate to now months because of advancements in foundational LLMs."

THE FUTURE OF BLOCKCHAIN & AI INTEGRATION

When asked about the intersection of AI and crypto, Deep3 Labs identified two primary directions:

1. Using blockchain to improve AI: Many companies are trying to decentralize access to compute resources or make data more accessible for AI training.

2. Using AI to enhance blockchain: Fewer companies are applying AI to improve blockchain experiences, which is where Deep3 sees the biggest opportunity.

Deep3 highlighted a critical insight: "If you take AI out of the modern internet, what do you have? Your grandma doesn't come online, none of these major companies—Google, Facebook—none of them exist." This is because machine learning creates personalized user experiences that attracted mass adoption.

Currently, Web3 lacks this personalization: "Every person on this call connecting to the same app gets the exact same experience." Deep3 sees this as a major deterrent to mainstream Web3 adoption and is focused on "taking all the ways that we know machine learning created value and led to the boom of Web2, and bringing those over to Web3."

ONBOARDING TO WEB3: SAFETY AND ACCESSIBILITY

The conversation touched on the challenges of entering the crypto space, particularly for newcomers. Deep3 acknowledged the industry's shortcomings:

"We as an industry have done a pretty spectacularly bad job of making understanding what we do transparent, making first steps in the industry clear, and most importantly, making them positive."

Security concerns remain significant, with the primary advice being to protect one's seed phrase at all costs:

"That is your life uber-password. It is the key to the kingdom. If anyone gets their hands on that, they can drain all the contents of your wallet."

For those looking to enter the space, Deep3 offered two practical approaches:

1. Find trusted in-person connections: "Someone in your network, maybe 2-3 times removed, is probably a crypto nerd to some degree. The biggest advantage to having that be an IRL relationship is you know who that person is."

2. Commit to learning: "Get on YouTube. Spend an hour a day watching, listening, just trying to understand how things work in the industry."

The goal is to eventually make blockchain technology invisible to users: "At some point in the near future, you will be on what is a blockchain website, a Web3 website, and you won't even know it. And that's when I know we've made it."

PRACTICAL CONSIDERATIONS FOR BUSINESSES EXPLORING WEB3

For businesses considering Web3 integration, the discussion highlighted several important perspectives:

1. Data as predictive value: "The best answer to why data has value is because it's our way of understanding how systems around us work. The more we can predict how future systems will operate, the more successful any given person will be."

2. Disintermediation beyond finance: "We have to be careful not to limit [blockchain] to financial contexts. There are so many more elements of commerce and society where disintermediation is really valuable and can fundamentally change how economies work."

3. Model verification challenges: As AI models become more integral to business decisions, trustworthiness becomes critical: "How do you trust that the math inside of all these trillions of calculations is actually working in the way you're told?"

BUSINESS INFRASTRUCTURE INSIGHTS: FIRST-CLASS EMAIL PRESENCE

Michael, an IT expert, shared valuable insights about setting up professional email infrastructure for businesses:

"For the low entry level of like $7 a month, you can actually get an Office 365 account that gives you access to Exchange, and through that, you can become a 'first-class citizen' with your email."

He emphasized the importance of maintaining a clean domain reputation: "You never want to burn your top-level domain. If you're going to do any mass marketing, use a subdomain like mail.yourdomainname.com, so if you get blacklisted, you've burned that and not your main domain."

This approach allows businesses to present a professional image while protecting their primary digital asset—their domain name.

FEATURED TOOLS & TECHNOLOGIES:

• Deep3 Labs Token Recommendation Engine: AI-powered system for crypto trading with 92.8% accuracy rate

• Grok 4: xAI's latest large language model offering PhD-level responses across multiple domains

• Microsoft Exchange/Office 365: Enterprise-level email services starting at $7/month

• LM Studio with MCP (Model-Calling/Connecting Protocol): For running local LLMs and creating agentic workflows

QUICK HITS:

• If you own 0.1 Bitcoin, you're "in the catbird seat" with significant future upside potential

• A significant portion (potentially one-third) of all Bitcoin may be permanently lost

• Data monetization works best when it's frictionless and doesn't require active user participation

• Web3 sites currently lack the personalization that drove mass adoption of Web2

• Using subdomain emails for marketing protects your main domain reputation

LOOKING AHEAD:

Deep3 Labs is currently in beta testing with approximately 100-200 users and 5,000 on the waitlist. Their platform will allow users to stake tokens and earn revenue as the company grows, creating a more equitable distribution of value from data monetization.

The broader vision is to use machine learning to drive a billion new users to Web3, making the technology accessible to mainstream audiences through improved user experiences.

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• Andy Wergedal: @andywergedal

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