Decoding bitsCrunch: Leading the NFT Frontier with AI and Comprehensive Analytics

11 min readOct 12, 2023

In recent years, the non-fungible token (NFT) market has experienced substantial growth, with billions of dollars’ worth of NFTs being exchanged annually. However, this growth has brought about challenges such as wash trading, fraud, a lack of transparency, and so on.

To address these challenges, the bitsCrunch Network has emerged as an AI-enhanced decentralized NFT data network with the aim of directly mitigating these issues. By offering precise and comprehensive NFT analytics, bitsCrunch strives to alleviate these concerns. This article provides an in-depth exploration of bitsCrunch and its role in enhancing transparency and security in the NFT space.

Overview on bitsCrunch

Established in 2021 and headquartered in Germany, bitsCrunch is a decentralised NFT data network that harnesses the power of artificial intelligence (AI). This innovative network offers users top-tier NFT analytics, investigative data, and seamless API integration. By utilising the bitsCrunch NFT data network, individuals can aptly navigate their NFT investments, pinpoint potential risks, and uphold robust security measures.

bitsCrunch employs a fusion of AI, machine learning, and blockchain technology to amass and scrutinise data from various NFT marketplaces, blockchain networks, and social media platforms. Subsequently, this data is transformed into valuable insights that empower users in making well-informed choices regarding their NFT investments.

Main Problems bitsCrunch Is Working to Solve

The recent surge in NFT popularity has brought about significant issues. These include NFT fraud, the absence of clear rules, and the complexity of understanding NFT sales data. NFT fraud is a major concern, as scammers find it easy to create and sell fake digital assets. For example, the NFT space has been grappling with a notable issue known as wash trading. According to bitsCrunch, more than $32 Billion in wash trading for 2022 and about 1 out of 20 secondary market NFT transactions are wash trades.

Without tools to detect such fraud, identifying suspicious deals becomes challenging. This can lead to individuals being deceived into purchasing counterfeit NFTs or falling for scam projects.

Regarding regulations, the NFT space lacks proper oversight, which means there’s no way to ensure the authenticity of NFTs and guarantee the safety of buyers. This absence of regulations makes it difficult to hold scammers accountable. It’s crucial to protect ordinary users and projects from NFT scams. While NFT sales data can contribute to user security, analysing this data poses another challenge. This data is often distributed across multiple blockchains and marketplaces, posing challenges for tracking, analysis, and interpretation. Let’s examine the bitsCrunch approach to addressing these critical challenges.

bitsCrunch’s Approach to Addressing NFT Fraud, Regulation, and Data Analytics

Notably, bitsCrunch operates as a community-powered platform that utilizes advanced computations, encompassing AI algorithms, data from both on-chain and off-chain sources, as well as IPFS metadata to deliver valuable insights through its NFT analytics platform, “UnleashNFTs.” Powered by AI, UnleashNFTs offers comprehensive insights, including marketplace statistics, NFT valuations, fraud detection, and market trends.[FU1] These insights are presented through rich data visualisations, providing users with reliable information to make informed decisions.

To achieve this, bitsCrunch gathers information from blockchain explorers, NFT marketplaces, and social media, including details like prices and ownership history. ML algorithms then process this data to uncover the hidden trends. The platform visually presents these insights using charts and graphs, which are accessible through their API, offering filtering and sorting options.

Designed for the ever-changing NFT market, bitsCrunch encourages community involvement from developers and users. It’s a reliable resource for making informed decisions in the NFT market by offering up-to-date data for trend identification, risk evaluation, and profitable investments.

Main Features of the bitsCrunch Platform

Real-time NFT Market Analysis: bitsCrunch offers users instant access to real-time data concerning, NFT sales, prices, trading volume, and other relevant metrics. Additionally, the platform provides comprehensive evaluations of the performance of specific artists, projects, or collections. This data serves as a resource for investors, collectors, and artists.
Forgery Detection: BitsCrunch employs machine learning to identify NFT forgeries, which are counterfeit NFTs created to mimic authentic ones. Utilising image analysis, blockchain analysis, and artificial intelligence, BitsCrunch effectively detects these forgeries. This proactive approach safeguards users from falling victim to scams involving fraudulent NFTs.
Wash Trade Detection: BitsCrunch employs machine learning to detect wash trades within the NFT market. Wash trades involve transactions between two parties with the intention of inflating prices. Through advanced machine learning algorithms, BitsCrunch identifies these trades, providing users with accurate and reliable information.
Marketcap Analysis: BitsCrunch offers market capitalisation data for NFT projects, allowing users to monitor project performance and identify high-potential growth opportunities. With this market cap data, users can pinpoint undervalued projects and track specific investment strategies.
Community-driven: The platform welcomes contributions from all members of the community, including both developers and users. These contributions play a vital role in the ongoing enhancement and development of the platform. By harnessing these inputs, the platform can continually evolve and incorporate new algorithms, features, and use cases, ensuring that it effectively addresses the diverse needs of its users.
Scalable & Adaptable: The scalability of this platform enables it to effectively manage substantial volumes of data, rendering it well-suited for utilisation by diverse users and organisations, thereby addressing the escalating demands of the expanding NFT market. Regarding adaptability, the platform demonstrates its applicability across various NFT use cases, thus positioning itself as an asset for all individuals engaged in the NFT ecosystem.
Accurate & Comprehensive Data: The platform employs AI algorithms to provide accurate and dependable data. It offers a diverse range of insights, encompassing market data, and so on. The transparency regarding data origins and algorithmic processes instils users with assurance in the accuracy and dependability of the data provided by the platform.

Exploring the Versatile Use Cases of bitsCrunch Technology

BitsCrunch offers a diverse range of applications tailored for NFT projects, artists, creators, investors, and regulatory bodies. Among the pivotal use cases are:

Fraud Detection and Alerting: Detecting fraud involving NFTs is crucial in the digital art space. bitsCrunch’s built-in fraud detection and alerting system can help projects identify and prevent deceptive actions, such as counterfeit NFTs, fraudulent schemes, and deceptive metadata. By leveraging NFT data insights from bitsCrunch, projects can develop strategies like user education, rigorous verification procedures, and transparent marketplaces to reduce the risks of NFT fraud and safeguard users.
Centralised/Decentralised NFT DeFi: BitsCrunch is a valuable resource for DeFi projects. With its provision of reliable NFT data, DeFi projects can gain access to real-time market insights for enhanced trading strategies, and accurate information to safeguard user funds from malicious contracts. BitsCrunch also benefits centralised and decentralised NFT marketplaces by offering ownership history, authenticity, and market value data for informed trading.
NFT Analytics Platform: NFT analytics platforms are confronted with the challenge of keeping up with the continuous evolution of blockchains and intricate transactions. This challenge will become even more worse as the blockchain and NFT industries continue to evolve. Through community contributions, the bitsCrunch network is enhanced, and its dynamic data can aid analytics projects in overcoming this challenge by offering current insights and staying competitive.
Compliance and AML (Anti-Money Laundering): The bitsCrunch network offers valuable data to benefit projects, users, financial institutions, and regulators in establishing a secure NFT ecosystem. This data can be used to create thorough AML reports, validate NFT transactions, and provide market oversight. This oversight is essential for a fair NFT market, fostering participant confidence and transparency.
NFT Lending Protocol: NFT lending protocols find it challenging to keep up with the ever-changing NFT landscape and accurately evaluate NFTs for use as collateral. Given the rapid growth and wide variety of assets in the NFT market, it is difficult to consistently stay up to date on the latest understanding of NFT values, trends, and potential risks. The bitsCrunch network addresses this issue by providing accurate, current data on NFT values, trends, and risks. This bitsCrunch solution can significantly help lending protocols address these challenges.
Gaming Sector: Game developers can use the bitsCrunch network to analyse market trends, understand how players interact on-chain, Identify insights in the game mechanics, in-game economy, and the impact of economic factors on player behaviour.
Artists and creators: Artists and creators can use bitsCrunch data to make informed decisions about the value of their creations. This data can help them refine their marketing strategies by providing accurate pricing information and market trends. It can also help them identify potential buyers and sellers for their NFTs, improving their strategic decision-making.

bitsCrunch to Launch Native Token BCUT with Utility-Driven Value

bitsCrunch is preparing for the launch of its native token, called the BCUT token. The company emphasizes that the token’s value will primarily be derived from its utility, as opposed to speculative or investment factors. The purpose behind introducing this token is to establish a sustainable and effective ecosystem. This will be achieved by promoting the use and adoption of the token through strategies such as distribution, maintaining supply-demand balance, and implementing effective governance measures.

The total supply of BCUT tokens will amount to 1 billion. These tokens will be distributed as follows: 10.0% for staking, 10.0% for the seed sale, 20.0% for the ecosystem, 10.0% reserved for private sale, 7.5% set aside for the public sale, 2.5% allocated for strategic staking, 23.0% designated for reserve, and 15.0% allotted for the team, with an additional 2.0% earmarked for advisors.

In September 2021, bitsCrunch raised $750,000 in its Seed funding round, garnering investments from notable backers such as Covalent, Double Peak, GenBlock Capital, Ledger Prime, MEXC Global, and Synaps. The funds were allocated towards product development and infrastructure enhancement, enabling expansion to multiple blockchains. The primary aim was to provide advanced analytics to NFT collectors and traders.

Meanwhile, in early 2022, the Private token sale managed to secure a sum of $3.6 million during its private round. The initiative was spearheaded by Animoca Brands, attracting prominent investors such as Coinbase Ventures, Polygon Studios, Crypto.com Capital, Borderless Capital, Morning Star Ventures, Mapleblock, GravityX, and Shima Capital. Moving into January 2023, Tykhe Block Ventures entered the scene with a strategic investment in bitsCrunch. This investment aims to pave the way for a future where Digital Assets are both secure and transparent.

The public token sale is still pending, but bitsCrunch intends to conduct it in the future. It’s important to highlight that all tokens will be fully unlocked within 49 months from the TGE (Token Generation Event). Despite the fact that all 1 billion tokens will be unlocked by the 49th month, it’s unlikely that the entire token supply will find its way into the market.

bitsCrunch Unveils Exciting Incentivized Testnet Programme

In April 2023, bitsCrunch started an Incentivized Testnet initiative. This multi-year programme consists of several rounds designed to reward participants. For this purpose, the bitsCrunch network dedicated 1% of its token supply. Each task will receive a designated portion of this 1% token supply as its respective reward allocation.

Participants in the United States and Canada may be affected by regulatory considerations regarding token-based rewards. As an alternative, bitsCrunch is actively exploring non-token rewards for successful participants from these regions to ensure fair and compliant participation.

The testnet aims to achieve two main objectives. Firstly, it focuses on bootstrapping and securing the network, which involves conducting comprehensive tests related to security, performance, and scalability of the network. Secondly, it aims to test the functionalities and gather product feedback. This involves testing the network’s APIs, smart contracts, and other features. Additionally, the testnet offers participants an opportunity to provide feedback on network usability and performance.

The testnet currently has one round which began in May 2023 and is set to conclude in September 2023 alongside the mainnet launch. Notably, no additional rounds of the incentivized testnet have been announced by bitsCrunch. This ongoing round includes 7 tasks intended to assess various aspects of the bitsCrunch network, including performance, security, and scalability. The incentivized testnet has garnered significant support from the Web3 community and is currently in its third task, boasting over 18,000 participants.

To participate, users need to create a CoinList account on CoinList, a crypto exchange platform, pass KYC verification, and then join the testnet to complete tasks. Rewards are distributed based on users’ contributions to the testing process, with more completed tasks leading to higher rewards.

bitsCrunch Competitors

NFTGo: This platform serves as a multifunctional entity, functioning as both an NFT marketplace and analytics platform. It facilitates diverse transactions involving NFTs in categories such as art, collectibles, gaming, and sports. The platform includes various features, including price history tracking, rarity indexing, and a social media feed. Meanwhile, bitsCrunch has a distinct focus on NFT data analytics, offering tools like fraud detection, valuation, and marketing insights.
Cryptoslam: This platform aggregates data on millions of NFTs from different blockchains, including sales, prices, and other metrics. CryptoSlam and bitsCrunch are NFT analytics platforms offering data on sales, prices, and volumes. Importantly, CryptoSlam functions as an NFT aggregator, whereas bitsCrunch offers additional features tailored to NFT projects.
NFTNerds: This is a specialised platform for NFT data and analytics, it offers a range of features, including NFT discovery, analytics, search filters, collections, and featured NFTs, enabling users to explore, analyse, and quickly acquire NFTs from the market. The platform’s objective is to provide a tool within the NFT space, making NFT discovery and purchases seamless for users.

bitsCrunch Network Demonstrates Remarkable Progress in Web3 Ecosystem with Initiatives and Partnerships

From its inception, bitsCrunch Network has demonstrated remarkable progress within the Web3 ecosystem. Particularly, in early 2023, the network introduced the bitsCrunch StartUP program, specifically designed for developers and startups. This initiative utilises bitsCrunch’s analytics and risk-management tools with the goal of enhancing accessibility to NFT data for individuals creating projects that add value to the space. The program also actively encourages adoption.

In addition, bitsCrunch has established partnerships with prominent companies, including xHashTag, ArchiDAO, Cros, WizBuds, and Sinso. Among these, the latest alliance is with NowNodes. Through this strategic partnership, bitsCrunch is set to deliver essential NFT forensics and analytics services to both new and existing projects.

bitsCrunch Amplifies Its Network with a Series of Node Operator Partnerships

During July and August 2023, bitsCrunch intensified its commitment to robust network expansion by aligning with several esteemed node operators. Among these partnerships, a notable collaboration was with Impossible Finance, a decentralized incubator, launchpad, and swap platform. This union is aimed to bolster the security facet of the bitsCrunch network.

In August, a strategic partnership was announced with Bware Labs, revered in the blockchain sector for their expertise in node hosting, staking, and development. This partnership exemplifies bitsCrunch’s aspirations for enhancing decentralization, thereby optimizing security and reliability.

The momentum didn’t wane, with further alliances being cemented with Lithium Digital, a recognized Node Operator and validator, and 01node, a standout in blockchain validation infrastructure.

Continuing its stride, bitsCrunch proudly collaborated with Node Guru, Pops One, and several other paramount figures in the node operation sector, each alliance amplifying the strength and reach of their network.

Each of these deliberate partnerships accentuates the bitsCrunch Network’s strategic vision in the evolving Web3 landscape. With such alliances, the network is unmistakably charting a path towards sustained innovation and unparalleled success.

Conclusion

BitsCrunch presents itself as an invaluable resource for investors, developers, and enthusiasts within the NFT ecosystem. It offers transparent data through its community-driven platform and accessible API, facilitating informed decision-making and innovation. BitsCrunch is a dynamic tool that contributes to NFT market understanding, investment choices, and fraud prevention. Although still in development, it has the potential to significantly impact the NFT landscape. With rapid growth and promising prospects, BitsCrunch is emerging as a pivotal player in shaping the future of NFTs.

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