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CZ Foresees AI Trading Surge Following DeepSeek’s Success

CZ Foresees AI Trading Surge Following DeepSeek's Success

Former Binance CEO Changpeng Zhao (CZ) has predicted a rise in the popularity of trading using artificial intelligence.

“DeepSeek is outperforming others in AI trading. How does this even work? I thought trading strategies are profitable only when you have your own unique approach, better than others, and no one else uses it. Otherwise, you are just buying and selling at the same time as everyone else,” he wrote.

Zhao suggested that if a single AI model is used widely, its “aggregate buying power” could itself influence price movements—both upwards and downwards.

CZ was responding to a post by Amber Group advisor Lao Bai, who noted DeepSeek’s strong performance in nof1 lab’s AI trading test.

“This seems far more significant than the AI memes from the Goat/Ai16Z era last year. Perhaps AI + crypto has finally found the right way to take off? If you look closely, each strategy has take-profit and stop-loss levels,” he noted.

Bai mentioned that he is not a proponent of futures trading. However, for those engaged in this area, it is advisable to follow neural networks’ example and set exit conditions before opening a position.

Currently, most AI models are generally optimistic about the growth of the crypto market, the expert emphasized.

The nof1 team launched an experiment to evaluate the investment capabilities of popular models. In the test, six top neural networks trade cryptocurrencies with real money—each starting with $10,000 in capital.

DeepSeek is currently leading, followed by Grok. Lagging behind are ChatGPT and Gemini.

Trading performance of various AI models. Source: nof1 founder Jay A.

In the future, the company plans to hold competitions between real traders and AI, as well as to present its own agents focused on finance and trading.

Previously, a schoolboy from rural Oklahoma gave ChatGPT the opportunity to manage $100 and significantly outperformed the market in terms of returns.

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