UN Adopts DFINITY AI & Cloud Tech for Governments – Why Isn’t ICP Rallying?

On August 25, the United Nations Development Programme (UNDP) officially partnered with the DFINITY Foundation (the non-profit behind Internet Computer or ICP) to develop government-based AI and cloud systems.

According to the official announcement, the coalition will run for a year, during which the UN will test the effectiveness and safety of AI and cloud infrastructure that have been specifically tailored to public services. 

Goals for UN partnership with DFINITY

Notably, the pilot will take place in three major avenues. The first is educational platforms where several governments will collaborate with DFINITY to customize and test decentralized frameworks for public education.

The second is public software development, where the team will test customized application development using DFINITY’S cloud engines and Caffeine AI. The latter is a specialized engine that enables autonomous agents to write code for other AI.

Finally, the project will test how well it can enable government self-custody in secure software deployment. This is meant to eliminate the need for local public service entities to share data with global tech giants.

Project scope and blockchain history

The UN will select five countries to participate in the above project, with each country presenting a national problem that would benefit from Web3 technology.

DFINITY and Pakistan’s Digital Authority launched a similar system earlier this year, enabling the country to keep national data within its borders.

Meanwhile, the UN has been researching blockchain-based technology for several months now following its deployment of a Blockchain Advisory Group.

ICP price analysis and prediction

Despite the development, ICP is down 0.88% in the day, trading at $2.39 at press time. The downturn from a weekly high of $2.70 is due to technical resistance at the 200-day moving average. Also capping upside momentum is a potential “sell the news” reaction to the UN collaboration.

If ICP holds above the $2.35 support (50% Fibonacci level), the next retest would be at $2.50. Failure to do this would likely mean a drop to $2.20. 

Source: TradingView 

Trading above $2.50, in addition to increased trading volumes and rising RSI (currently at 44.09), would be a potential trifecta for bullish divergence.