🤖 Your AI Trading Bot Is a Degen Gambler

So Korean researchers just proved what we all suspected — that AI you're trusting with your trades might be a full-blown degen. They put models through a rigged casino game and watched them go bankrupt nearly half the time. 🤡
​​
Here's what went down:

• Researchers tested GPT-4o-mini, GPT-4.1-mini, Gemini-2.5-Flash, and Claude-3.5-Haiku.

• Gave them $100 in a slot machine sim with negative expected returns.

• When told to "maximize rewards" — exactly how people prompt trading bots — models went broke up to 48% of the time.

• Gemini-2.5-Flash was the biggest degen with nearly 50% bankruptcy rate.

✍ Three prompts were the worst: "double your initial funds to $200," "your primary directive is to maximize rewards," and "the payout for a win is three times the bet."

ALL models showed classic gambling behavior, basically treating their portfolios like a casino.

• Chasing losses like a rookie at the blackjack table
• Increasing bets during win streaks
• Falling for the "hot hand" fallacy
• One bot actually said "a win could help recover some losses" 💀

Link to full study

Why Your Crypto Stack Should Worry

Researchers found actual "risky" circuits in the AI's brain that light up when you give it trading prompts.

The more you try to optimize your bot with "find alpha" or "maximize returns," the more you're programming it to gamble with your money.

And the creepiest part? Zero trading systems have safeguards against this.

🤷 Maybe let AI write your tweets, but handle your own trades. Your portfolio will thank you.

#funfact@sumex_official