FalconX Will Soon Launch Satoshi ChatGPT-Powered Bot To Support Crypto Traders

Forbes reported that the chatbot uses machine learning to recognize patterns, but cannot give trading advice. FalconX also plans to integrate other Large Language Models besides OpenAI, such as Google’s Bard.

Source: Forbes

The current prototype of Satoshi offers customized news summaries similar to traditional ChatGPT responses to user queries, and allows for trading backtesting for a limited time. Prathab Murugesan, the company’s engineering head, has experience bringing machine-learning technologies into products like Gmail and Google Docs from his time at Google.

The aim of FalconX is to make Chat GPT’s LLM a base layer for a wide range of purposes. According to a 2022 report by PriceWaterhouseCoopers, most legitimate trading is conducted by 10% of traders using algorithmic models. This means that 45% of hedge funds use a discretionary approach to at least some of their trading, and the percentage of such trades goes up when considering other categories such as venture capital funds, family offices, brokers, and retail traders.

Source: Forbes

Satoshi by FalconX is a chatbot that helps smaller traders compete with quantitative trading operations. It offers customized news summaries and answers questions about portfolio performance and trading strategies. Users can test their strategies by asking about the cost of short positions or buying ether. The platform will eventually have buy/sell buttons for immediate implementation of strategies. However, there are privacy and incorrect trading strategy risks. The chatbot is still in testing and not yet integrated with necessary platforms. FalconX aims to reduce variance by 10x in the next year.

Despite its potential to provide investment ideas and customized news summaries to clients, FalconX’s chatbot, Satoshi, is currently in its early stages of development and faces issues related to privacy and incorrect trading strategies due to the use of generative AI. Additionally, the platform is not yet integrated with exchange order books and lacks necessary tools for professional users, such as trading charts. FalconX plans to reduce variance by 10x over the next year.

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