Artificial intelligence (AI), according to many, will have a major impact on virtually every industry. Crypto trading is no different. Brett Harrison, former CEO of FTX.US, who stepped down months before the parent company collapsed believes that AI can make it easier to code algorithmic trading strategies.

Harrison said in an interview with CoinDesk that his new venture, Architect was officially launched in January 2023. It received a seed round of $5 million from Coinbase Ventures, Anthony Scarmucci and others. The aim is to provide investment tools for individual traders as well as large institutions. Architect’s beta platform is available to select clients since May.

Architect saw a chance to create algorithmic trading codes for crypto around February or May when AI interest was at its peak. He used generative AI tools like ChatGPT, the chatbot developed by Sam Altman’s OpenAI. The hardest part of creating algorithms is often the first step. It requires special skills and knowledge, which not all trading companies have.

Harrison explained that the idea was to combine OpenAI APIs (application programming interfaces) with our own trading APIs, which we built on top of these different protocols. This would allow traders to generate code using natural language probes. Architect’s platform allows traders to set up software, for example, that purchases bitcoin from Coinbase (COIN), when the price falls below what it costs on other crypto exchanges.

Early stages

Architect, however, is in an “early-exploration” phase with AI tools and sees them as a part of Architect’s platform. Harrison explained that another AI-powered tool Architect is considering is using large language model (LLM) for advanced indicators or embedding LLMs into the trading process.

Artificial neural networks such as OpenAI’s ChatGPT or Google’s Bard, which are trained to understand and produce human-like text using large datasets, form LLMs. LLMs are able to explain complex concepts to users using their language skills.

Read more: AI can generate a trading edge in crypto markets

Harrison explained that the main idea was to create software that would help institutions prepare for a future where traditional assets and digital assets are seamlessly mixed. We do believe that AI will be a key component in most businesses moving forward. And we didn’t wish to miss this opportunity to provide AI tools to our users.

The success of trading strategies is ultimately determined by the team that created them, and not the generative AI. Harrison said that the results of OpenAI’s Chat GPT will only be as good at what you tell it.

He said, “You need to make sure that the strategy is working. You can tweak it and test it.”

The FTX Connection

Harrison and Architect have been shadowed by FTX, the company which saw one of crypto’s most publicized collapses.

Harrison left his position as CEO of FTX.US at the end of September 2022. This was just months before ‘s exchange collapsed. Six of the eight Architect employees who are listed on its site worked at FTX.US.

Harrison was asked about his involvement with FTX, and fundraising. He said that while some investors could not shake the connection, others were able.

“I talked publicly about how Sam had real power in the industry before the collapse and that it affected my raising process. People asked me what kind of connection Sam would have with the company prior to the crash. Afterwards, after the collapse, many of these same investors expressed concern about my involvement with FTX. He said that those were only a few of the investors he had spoken to.

Harrison said, “We raised money very successfully in what would have been otherwise some of the hardest times in the industry for raising funds in general. Not just for crypto but for all the VCs [venture capital] in the landscape.”

Nelson Wang and Aoyon Asraf edited the book.