
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Cryptocurrency is rapidly evolving with different innovations, adoptions and integrations. This evolution has given rise to the integration of Artificial Intelligence (AI) in crypto. Changpeng "CZ" Zhao, the founder and former CEO of Binance, has made strong remarks about AI-related projects.
CZ: Focus on product-market fit, not just tokens
In a post on X, CZ criticized such projects, particularly those prioritizing token launches over developing functional AI agents. He noted that this trend is increasing because some developers only focus on the financial aspects.
CZ suggested that developers shift from tokens and fundraising to ensure that AI agents are useful and valuable and meet the market's needs.
"Only launch a token when there is product-market fit," the Binance founder stated.
He warned against launching a token before attempting to prove that the AI agent has real demand or a working business model.
The former Binance CEO has questioned the need for tokens in most AI projects. In his opinion, most of these AI agent tokens do not have a clearly defined utility, which could lead to poor project outcomes.
Hence, CZ maintained that AI developers must create high-quality, functional AI agents before considering introducing a token.
Debate over AI tokens
The Binance founder's stance and advice to AI developers to focus on solving real problems instead of rushing to launch speculative tokens resonates with many.
Reacting to the post, a user named Satoshi Club opined that 95% of AI agents do not require a token.
CZ replied that "maybe 99.95%" of such projects do not need a token.
For his part, Cato highlighted the challenge of raising Research and Development funds, leading many to the approach that Changpeng Zhao is critiquing. Cato noted that many investment institutions are primarily about making profits.
While CZ acknowledged that raising money using tokens is a "powerful use case for crypto," he insists that developers must build after raising funds, not just selling tokens.