The influence of ChatGPT on artificial intelligence related crypto assets: Evidence from a synthetic control analysis

Abstract

The introduction of OpenAI's large language model, ChatGPT, catalyzed investor attention towards artificial intelligence (AI) technologies, including AI-related crypto assets not directly related to ChatGPT. Utilizing the synthetic difference-in-difference methodology, we identify significant "ChatGPT effects,” with AI-related crypto assets experiencing average returns ranging between 10.7% and 15.6% (35.5% to 41.3%) in the one-month (two-month) period after the ChatGPT launch. Furthermore, Google search volumes, a proxy for attention to AI, emerged as critical pricing indicators for AI-related crypto assets post-launch. We conclude that investors perceived AI-related crypto assets as possessing heightened potential or value after the launch, resulting in higher market valuations.