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The Alpha Frontier: AI for Early Signal Discovery

Unlocking faint Web3 x AI signals for investment alpha

– Eugene Tsai, Venture Data Analyst at Decasonic

In the Web3 x AI venture landscape, the most compelling opportunities often emerge before a narrative reaches broad agreement or obvious market attention. The firms that consistently generate outsized outcomes are those that act on subtle, faint indicators in usage, building activity, and community engagement months before the crowd arrives. When deployed with intentional workflows, AI has enabled this capability at scale by integrating on-chain activity, developer ecosystems, community dynamics, and emerging research into predictive intelligence.

The purpose of this blog post is threefold. First, I explain why non-consensus signals define the new alpha frontier. Second, I present a practical three-step framework that shows how to use AI to systematically spot these signals. Finally, I describe how a feedback loop grounded in human-AI alignment strengthens their accuracy and introduces Decasonic’s AI operating system as the signal engine for this workflow, along with the upcoming AI category screener that I am building to connect themes, categories, and assets.

Using the intersection of Web3 x AI as the core context, I outline how investors can turn faint, early patterns into conviction and, ultimately, differentiated investment alpha.

Top of Mind

• Paul shared his insights on OpenRouter’s biggest AI usage report of 2025 in a recent LinkedIn post here

• Abdul shared his insights on AI competition between to model providers in a recent X post here

• Justin shared his insights on Gen AI Website Traffic Market Share in a recent X post here

• Eugene shared his experience at the UIC blockchain presentation in a recent LinkedIn post here

Where to Find Us

• Paul will be at the Economic Club of Chicago, December 10

• Justin will be at the mHUB Industry Disruptors, December 11

• Justin will be at the Harnessing AI: The Next Frontier in Manufacturing Innovation, December 16

Thanks for reading!

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