Changpeng Zhao has voiced a sentiment that resonates with many analysts, advocating for AI projects to utilize existing tokens for payments and to consider launching their own only after achieving substantial scale.
In a recent update on X, he put forward an “unpopular opinion,” suggesting that it’s unnecessary for every AI agent to have its own token since payments for services can be made with established tokens. “Only introduce a coin if you have scale. Prioritize utility over tokens,” he remarked.
As reported by CoinMarketCap, the overall market capitalization of AI & Big Data tokens has seen a decline of around 22% in the last month, now sitting at $27.44 billion. Several AI agents have fallen by double-digit percentages recently; for instance, Virtuals Protocol (VIRTUALS) dropped by 42%, Render (RENDER) by 30%, and Near Protocol (NEAR) by 26%.
Still, these downturns appear primarily driven by a broader crypto market slump instead of a shortage of utility, as macroeconomic elements—most notably tariffs introduced during Trump’s administration—play a significant role. Recent uncertainties regarding possible extensions of existing restrictions in the U.S. have caused AI chipmaker stocks to plummet, with Nvidia seeing a notable 6% hit, which has exerted additional downward pressure on crypto tokens associated with AI.
Even though the dip in AI tokens’ market capitalization is largely influenced by macroeconomic factors, other analysts have echoed Zhao’s concerns regarding the utility of AI tokens.
For instance, a Coinbase research analyst highlighted that the recent surges in AI token prices were propelled chiefly by market hype rather than genuine usefulness. He suggested that this hype is largely due to a broader emphasis on the AI sector.
Additionally, on-chain investigator ZachXBT remarked that a staggering 99% of AI-related cryptocurrencies are scams, pointing out that while meme coins openly acknowledge their lack of intrinsic value, AI projects frequently promote their tokens as though they offer real utility.