Binance CEO Changpeng Zhao expressed that AI crypto projects focus too much on token launches at the expense of real utility, which he sees as a significant mistake.
Decline of AI Crypto Market
Over the past month, cryptocurrencies related to AI have dropped by more than 21%, bringing their collective value to about $27 billion. This is a 61% decline from the December 2023 peaks, resulting in huge market cap losses.
Changpeng Zhao's Quote
In a March 17 post on X, Zhao stated, "While crypto is the currency for AI, not every agent needs its own token. Agents can take fees in an existing crypto for providing a service. Launch a coin only if you have scale. Focus on utility, not tokens."
Investor Concerns and Prospects
Despite current struggles, major venture capital firms like Pantera Capital and Dragonfly see potential in AI agents, though they invest cautiously, given most AI crypto projects are in early development stages with unproven business models. At Consensus 2025 in Hong Kong, industry experts agreed that AI agents could succeed by taking payments in existing digital currencies.
While AI cryptocurrencies face challenges, there remains potential in the industry for AI agents if they focus on real utility and leverage existing cryptocurrency infrastructure.
