In a world where every AI agent seems to be launching its own token, Changpeng Zhao, the man who’s probably seen more crypto than anyone else, has dared to utter an “unpopular opinion”.
In his recent post on X, he suggested that not every AI agent needs its own token. Instead, they can collect payments in existing tokens for their services. “Launch a coin only if you have scale. Focus on utility, not tokens,” he said.
Now, you might be thinking, “But what about the glorious future of AI and its tokens?” Well, according to CoinMarketCap, the total market cap of AI & Big data tokens has declined by approximately 22% in the past 30 days, currently at $27.44 billion.
Many AI agents are down by double digits in the last month, with Virtuals Protocol (VIRTUALS) declining by 42%, Render (RENDER) by 30%, and Near Protocol (NEAR) by 26%. But don’t worry, these declines are likely driven by the broader crypto market downturn rather than a lack of utility.
Macroeconomic factors, like Trump’s tariffs, have played a key role in this. The uncertainty over potential U.S. expansions of existing restrictions recently sent stocks of AI chipmaker companies tumbling, with Nvidia’s stock taking a significant 6% decline, adding further pressure on AI-related crypto tokens.
Although the decline in AI tokens’ market cap is driven primarily by macro factors, other experts echoed Zhao’s sentiment about the lack of utility of AI tokens. Coinbase research analyst David Han noted that the recent price rallies in AI coins were driven mainly by hype rather than actual utility.
On-chain sleuth ZachXBT also claimed that 99% of AI cryptos are scams, saying that while memecoins acknowledge their lack of inherent value, AI projects often market their tokens as if they had utility.
“Do you want to be right or do you want to make money”
99% of it is a scam and the AI agent wrapper grifts are probably worse than other past trends tbh.
bc at least meme coins promise nothing whereas AI coins try to larp as much as possible to appear legit to unsuspecting…
— ZachXBT (@zachxbt) January 6, 2025
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2025-03-17 20:39