Gradients (SN56) Explained: The Decentralized AI Crypto Coin

Imagine a world where anyone with spare computing power can earn money by helping train AI models. That’s the promise behind Gradients (SN56), a crypto coin built to power a decentralized AI training platform on the Bittensor blockchain.

Key Takeaways

• Gradients (SN56) fuels a marketplace that lets users rent out GPU cycles for AI training.
• It lives on Bittensor, a niche blockchain focused on distributed machine learning.
• Circulating supply is roughly 2.9million SN56 out of a 21million max supply.
• Price volatility is high - the token hit $39.41 in June2023 and fell to $6.21 in October2023.
• Liquidity is limited; MEXC is the primary exchange where you can trade SN56.

What is Gradients (SN56)?

Gradients (SN56) is a crypto coin that acts as the native utility token for a decentralized AI training platform. Launched in 2023, the project aims to democratize AI development by turning idle GPU resources into a sellable commodity. Participants stake SN56 to access training jobs, and they earn more SN56 when their contributed compute helps improve a model.

Where does it live? The Bittensor ecosystem

The token’s blockchain home is Bittensor, a purpose‑built network for distributed machine‑learning workloads. Bittensor provides the consensus layer, a reputation system, and a token‑curated registry that matches model owners with compute providers. By nesting inside Bittensor, Gradients inherits a set of smart‑contract tools designed for AI‑specific use cases rather than generic DeFi functions.

Tokenomics at a glance

All major data aggregators agree that the maximum supply caps at 21million SN56. However, circulating numbers vary:

• CoinGecko: 2.9million (≈13.8% of max)
• CoinMarketCap: 1.26million (≈6.0% of max)
• Holder.io: 2.86million (≈13.6% of max)

Market cap sits between $17million and $41million depending on the source, reflecting price discrepancies across exchanges. The token’s inflation schedule is tied to the amount of AI work performed on the network - more training jobs generate fresh SN56, which is meant to incentivize continued participation.

How to acquire and trade SN56

Because the token is still niche, it isn’t listed on major exchanges like Binance or Coinbase. The most reliable venue as of October2025 is MEXC Exchange. You’ll typically need to:

1. Create a MEXC account and complete KYC (if required for your jurisdiction).
2. Deposit a major cryptocurrency such as USDT or BTC.
3. Navigate to the SN56/USDT market and place a market or limit order.
4. Transfer the tokens to a self‑custodial wallet that supports the Bittensor network (e.g., Polkadot.js with custom RPC endpoint).

Always double‑check the contract address (provided on gradients.io) before sending funds, as phantom tokens with similar symbols occasionally appear on smaller exchanges.

Comparing Gradients to other AI‑focused crypto projects

Gradients stands out for its ultra‑specific focus on GPU compute, whereas the others provide broader AI services or data marketplaces. The trade‑off is less liquidity and a smaller user base.

Risks and criticisms

Even enthusiastic supporters acknowledge several red flags:

• Liquidity constraints: Limited exchange listings mean price slippage can be severe on small orders.
• Documentation gaps: Developers often report broken UI and missing API references, pushing the learning curve to 2‑3 weeks for newcomers.
• Supply concentration: Roughly 86% of the max supply is held by early investors and the development fund, which could pressure price if large holders sell.
• Regulatory uncertainty: The EU AI Act may impose compliance burdens on decentralized training platforms, potentially limiting European participation.
• Dependency on Bittensor: If the underlying network stalls, Gradients loses its primary utility.

These factors contribute to a wide range of analyst forecasts - some see 200‑300% upside if Bittensor hits its roadmap, while others warn of possible extinction if the broader crypto market corrects.

Future outlook

The development roadmap, last updated in October2023, targets three milestones for Q42023:

1. Full mainnet integration with Bittensor’s reputation system.
2. Overhaul of developer documentation and release of step‑by‑step guides.
3. Listing on at least three Tier‑2 exchanges beyond MEXC.

If these goals are met, the token could see a modest liquidity boost and a larger developer community. However, long‑term relevance still hinges on the broader adoption of decentralized AI training - a market that, according to Messari, grew 327% in Q32023 but remains fragmented across dozens of niche projects.

How to evaluate Gradients for your portfolio

Use this quick checklist before allocating capital:

• Do you understand Bittensor’s consensus and reputation mechanics?
• Can you comfortably store SN56 in a non‑custodial wallet?
• Are you prepared for high price volatility and limited order depth?
• Do you believe decentralized AI compute will become mainstream within the next 3‑5 years?

If you answered “yes” to most questions, Gradients may suit a high‑risk, high‑potential slice of a crypto portfolio.