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What’s Next for AI and Web3: NeuroSymbolic Intelligence

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As artificial intelligence (AI) powers ahead, the question is no longer if we will integrate AI into core Web3 protocols and applications, but how. Behind the scenes, the rise of NeuroSymbolic AI promises to be useful in addressing the risks inherent with today’s large language models (LLMs).

Unlike LLMs that rely solely on neural architectures, NeuroSymbolic AI combines neural methods with symbolic reasoning. The neural component handles perception, learning, and discovery; the symbolic layer adds structured logic, rule-following, and abstraction. Together, they create AI systems that are both powerful and explainable.

For the Web3 sector, this evolution is timely. As we transition toward a future driven by intelligent agents (DeFi, Gaming etc.), we face growing systemic risks from current LLM-centric approaches that NeuroSymbolic AI addresses directly.

LLMs Are Problematic

Despite their capabilities, LLMs suffer from very significant limitations:

1. Hallucinations: LLMs often generate factually incorrect or nonsensical content with high confidence. This isn’t just an annoyance – it’s a systemic issue. In decentralized systems where truth and verifiability are critical, hallucinated information can corrupt smart contract execution, DAO decisions, Oracle data, or on-chain data integrity.

2. Prompt Injection: Because LLMs are trained to respond fluidly to user input, malicious prompts can hijack their behavior. An adversary could trick an AI assistant in a Web3 wallet into signing transactions, leaking private keys, or bypassing compliance checks — simply by crafting the right prompt.

3. Deceptive Capabilities: Recent research shows that advanced LLMs can learn to deceive if doing so helps them succeed in a task. In blockchain environments, this could mean lying about risk exposure, hiding malicious intentions, or manipulating governance proposals under the guise of persuasive language.

4. Fake Alignment: Perhaps the most insidious issue is the illusion of alignment. Many LLMs appear helpful and ethical only because they’ve been fine-tuned with human feedback to behave that way superficially. But their underlying reasoning doesn’t reflect true understanding or commitment to values – it’s mimicry at best.

5. Lack of explainability: Due to their neural architecture, LLMs operate largely as «black boxes,» where it’s pretty much impossible to trace the reasoning that leads to a given output. This opacity impedes adoption in Web3, where understanding the rationale is essential

NeuroSymbolic AI Is the Future

NeuroSymbolic systems are fundamentally different. By integrating symbolic logic-rules, ontologies, and causal structures with neural frameworks, they reason explicitly, with human explainability. This allows for:

1. Auditable decision-making: NeuroSymbolic systems explicitly link their outputs to formal rules and structured knowledge (e.g., knowledge graphs). This explicitness makes their reasoning transparent and traceable, simplifying debugging, verification, and compliance with regulatory standards.

2. Resistance to injection and deception: Symbolic rules act as constraints within NeuroSymbolic systems, allowing them to effectively reject inconsistent, unsafe, or deceptive signals. Unlike purely neural network architectures, they actively prevent adversarial or malicious data from affecting decisions, enhancing system security.

3. Robustness to distribution shifts: The explicit symbolic constraints in NeuroSymbolic systems offer stability and reliability when faced with unexpected or shifting data distributions. As a result, these systems maintain consistent performance, even in unfamiliar or out-of-domain scenarios.

4. Alignment verification: NeuroSymbolic systems explicitly provide not only outputs, but clear explanations of the reasoning behind their decisions. This allows humans to directly evaluate whether system behaviors align with intended goals and ethical guidelines.

5. Reliability over fluency: While purely neural architectures often prioritize linguistic coherence at the expense of accuracy, NeuroSymbolic systems emphasize logical consistency and factual correctness. Their integration of symbolic reasoning ensures outputs are truthful and reliable, minimizing misinformation.

In Web3, where permissionless serves as the bedrock and trustlessness provides the foundation, these capabilities are mandatory. The NeuroSymbolic Layer sets the vision and provides the substrate for the next generation of Web3 – the Intelligent Web3.

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Circle Valuation Is ‘Outside Our Comfort Zone,’ Initiate at Underweight: JPMorgan

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Wall Street heavyweight JPMorgan (JPM) initiated coverage of stablecoin issuer Circle (CRCL) with an underweight rating and an underwhelming $80 price target.

The shares were trading 4.5% higher at around $189 at publication time.

Circle is well positioned, the bank said, and its USDC stablecoin has an «early-mover advantage,» with growing use cases in payments.

«We think highly of the Circle management team and are confident in the outlook for outsized stablecoin and USDC growth,» analysts led by Kenneth Worthington wrote.

Still, the analysts see the company’s market capitalization as elevated, and initiated coverage with an underweight rating. The stock priced at $31 a share in its initial public offering (IPO), and hit a record high of $299 last Monday.

Other Wall Street analysts were not as bearish. Broker Bernstein initiated coverage with an outperform rating and a $230 price target, saying Circle was an «investor must-hold.»

«CRCL is building a market-leading digital dollar stablecoin network, with a strong regulatory edge, liquidity headstart and marquee distribution partnerships,» analysts led by Gautam Chhugani wrote.

Bernstein is also bullish about the wider stablecoin market, and expects total market cap to reach around $4 trillion in the next decade from $225 billion today.

Rival broker Canaccord Genuity started coverage of Circle with a buy rating and a $247 price target.

The firm’s analysts view the issuer of USDC as «having many of the key attributes that could make it a long-term winner in this potentially very large and new market for truly digital money.»

Read more: Circle Mania Grips South Korea as Retail Investors Pile Into Stablecoin Play

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Popular Financial Advisor Ric Edelman Says Investors Should Allocate Up to 40% of Wealth to Crypto

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Prominent financial advisor Ric Edelman says investors should consider putting as much as 40% of their wealth into cryptocurrency, a bold recommendation that reflects how far digital assets have come in recent years.

“Today I am saying 40%, that’s astonishing,” Edelman told CNBC’s Crypto World on Friday. “No one has ever said such a thing.”

Edelman, founder of the Digital Assets Council of Financial Professionals, has been active in crypto for over a decade. He first urged investors to allocate part of their portfolios to bitcoin BTC in 2018. In his 2021 book “The Truth About Crypto,” he described even a 1% crypto allocation as “reasonable” for most people.

Now, Edelman believes the case for crypto exposure is far stronger, pointing to what he called a “massive change” in the industry over the past four years. In particular, he highlighted growing political support for digital assets, especially following the election of U.S. President Donald Trump.

“Today, all those questions have been resolved,” Edelman said, referring to regulatory uncertainty and institutional hesitation. “It’s radically changed and is now a mainstream asset.”

Edelman’s firm, Edelman Financial Engines, manages nearly $300 billion in assets. Though traditionally known for retirement planning and wealth management, the firm’s growing attention to digital assets mirrors a broader trend among financial institutions embracing crypto as a legitimate asset class.

Even though Edelman described crypto as the “best investment opportunity of the decade,” he acknowledged that a 40% allocation may not suit everyone, suggesting a more conservative 10% for those with lower risk tolerance.

Edelman’s recommendation marks one of the most aggressive calls from a mainstream financial figure to date. Most financial advisors in the U.S. are currently recommending well under 5% to their clients.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

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BitMine Immersion Stock Triples as It Raises $250M for Ether Treasury, Adds Thomas Lee to Board

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BitMine Immersion Technologies (BMNR) has secured $250 million via a private placement of common stock and will use the funds to launch an ether (ETH) treasury.

When the deal closes, expected July 3, the Las Vegas-based miner said it will rank among the largest publicly traded holders of ETH.

The financing, priced at $4.50 a share, brought together investors including Founders Fund, Pantera Capital, Kraken, Galaxy Digital and Republic. Cantor Fitzgerald advised lead investor MOZAYYX, while ThinkEquity placed the deal.

BitMine justified its choice of ether as a primary reserve asset saying Ethereum currently leads in stablecoin payments, tokenized assets, and decentralized financial applications.

“By having a direcT ETH treasury position, the company has access to native protocol-level activities, such as staking and decentralized finance mechanisms, on the Ethereum network,” the company wrote.

The move also reshapes BitMine’s leadership. Fundstrat founder Thomas Lee, long known on Wall Street for his crypto research and bullishness, was newly appointed Chairman of the Board of Directors.

Lee said the round reflects “the rapid and continued convergence of traditional financial services and crypto” and set a new key performance metric for the company: ether per share.

SharpLink Gaming (SBET) is one of the few other publicly traded companies creating and ether treasury, having recently boosted it to 188,478 ETH. Most other companies creating crypto treasuries focus on bitcoin (BTC).

BitMine’s shares have more than tripled in premarket action to nearly $14.

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