AI tokens market tanks 14.6% as Nvidia faces anti-trust probe in China

Artificial Intelligence-related cryptocurrencies have seen significant declines; The market value of AI coins dropped 14.6% in one day following reports of China’s anti-trust investigation into AI chip-making giant Nvidia.

Near Protocol (NEAR), the largest AI coin by market cap, is down over 8.6% in the past day and is trading at $6.65 per coin at press time. Render (RENDER), Akash Network (AKT), FET and The Graph (GRT) lost 9.7%, 9.6%, 8.6% and 8% respectively during the same period.

Meanwhile, other AI tokens such as Bittensor (TAO), Arkham (ARKM), Livepeer (LPT), and Flux (FLUX) suffered much higher losses of 12-16% respectively. Losses in AI-related cryptocurrencies led to a 14.6% decline in the market value of AI coins, falling to $40.56 billion at the time of writing.

The AI ​​industry plummeted after China launched an investigation into Nvidia, which is suspected of violating the country’s anti-monopoly law. The State Administration for Market Regulation also accused the US chipmaker of violating commitments tied to its 2020 acquisition of Israeli chip designer Mellanox Technologies.

The report had a significant impact on Nvidia, which derives about 15% of its revenue from customers in China, according to its latest financial report. Nvidia’s shares closed down 2.55% at $138.81 on New York markets on Tuesday.

Nvidia share price | Source: Google Finance

AI-related cryptocurrencies often respond to Nvidia-related news. As previously reported by Crypto.news, many of these tokens suffered double-digit losses after Nvidia suffered its largest one-day market cap drop on September 4 following an antitrust subpoena by the US Department of Justice.

This time, AI-related cryptocurrencies also faced setbacks; Leading crypto asset Bitcoin (BTC) suffered a sudden crash on December 10, briefly falling below $95,000 from an intraday high of $100,200 recorded the previous day.

The crash triggered a ripple effect in the broader crypto market; This dropped by 6.8% in the past day, leading to a massive liquidation of $1.7 billion.