Changpeng Zhao Urges AI Agents to Prioritize Utility Over Token Launches

Changpeng Zhao (CZ), the founder and CEO of Binance, recently shared his views on the role of tokens in the rapidly growing AI sector. In a post on X, Zhao expressed an “unpopular opinion,” advising that AI projects should prioritize utility over launching new tokens. He emphasized that AI agents can collect payments in existing cryptocurrencies rather than issuing their own token. “Launch a coin only if you have scale. Focus on utility, not tokens,” he said.

This sentiment echoes a growing concern among analysts about the practical value of many AI-related tokens. Despite the buzz around AI and blockchain, many AI projects in the crypto space are seeing declines in value. According to CoinMarketCap, the AI & Big Data tokens market cap has dropped by approximately 22% in the past 30 days, bringing the total market cap down to $27.44 billion. Tokens of several AI platforms, including Virtuals Protocol (VIRTUALS), Render (RENDER), and Near Protocol (NEAR), have faced significant declines—some as high as 42%.

However, these declines are largely attributed to macroeconomic factors rather than a lack of utility. Specifically, Trump’s tariffs and other regulatory uncertainties have weighed heavily on the market. The AI chipmakers, including Nvidia, have also faced setbacks, with Nvidia’s stock falling by 6%, contributing to broader market pressure on AI-related crypto assets.

Zhao’s comments align with concerns from other industry experts. For instance, David Han, a research analyst at Coinbase, observed that recent price rallies in AI coins were driven more by hype than real-world utility. Han suggested that much of the enthusiasm for these tokens was linked to broader excitement surrounding the AI industry rather than tangible use cases for the tokens themselves.

Similarly, ZachXBT, an on-chain investigator, criticized many AI-related tokens, claiming that 99% of them were scams. He highlighted that while memecoins often openly acknowledge their lack of inherent value, many AI projects market their tokens as having functional utility, which he believes is misleading.

Overall, Zhao’s call for utility-first in AI tokens echoes broader concerns in the crypto space that many projects may be overhyped or speculative without providing tangible, real-world use cases. As the AI and blockchain space continues to grow, the focus may shift towards projects that demonstrate true value and functionality rather than simply launching tokens for the sake of it.