Binance's Founder Stresses Importance of Functionality Over Token Generation for Artificial Intelligence Entities
In a recent development, Binance founder Changpeng Zhao (CZ) has expressed his views on AI agents and their relation to tokens in the cryptocurrency market. In a series of statements, CZ expressed skepticism towards the proliferation of AI tokens without real utility, emphasizing the importance of tokens that facilitate autonomous operations and interactions within decentralized Web3 environments.
"Launch a coin only if you have scale. Focus on utility, not tokens," CZ advised, effectively discouraging the creation of AI tokens that lack practical application. CZ's stance underscores the importance of integrating AI agents with specific tokens to provide real-world value and foster a synergy between AI and blockchain.
CZ also highlighted the need for crypto projects to concentrate on utility and sustainable value rather than launching tokens without a clear purpose. He emphasized the potential drawbacks of fragmented and localized crypto infrastructure, warning that country-specific exchanges could lead to reduced liquidity and increased market volatility. CZ encouraged an integrated, global approach to cryptocurrency infrastructure to maintain efficiency.
In terms of the broader market direction, CZ sees promising growth sectors in altcoins, especially those integrating blockchain with AI, decentralized science (DeSci), and tokenized real-world assets as leading candidates for the next altcoin boom. CZ believes the current cryptocurrency cycle is largely driven by Bitcoin ETFs and institutional adoption, which will eventually benefit other cryptocurrencies as well.
Overall, CZ's outlook calls for crypto projects to prioritize real-world utility, robust infrastructure, and the strategic integration of AI technologies rather than chasing trends without substance. CZ envisions a future where cryptocurrency will serve as the primary currency for AI transactions, gradually replacing traditional financial instruments like credit cards.
The decline in the overall crypto market, which has seen the capitalization of AI-related crypto assets drop 61%, from $70.4 billion in December 2024 to $27 billion in March, according to CoinMarketCap, underscores the importance of CZ's comments. Analysts at Sygnum Bank previously noted that AI-driven cryptocurrencies could become a major trend in 2025. However, for now, they remain largely speculative assets.
"Striving for real-world utility, CZ advocates for the collaboration of AI agents with specific tokens to enhance their value and application in the cryptocurrency market,"
"In the future, as envisioned by CZ, AI transactions could increasingly utilize cryptocurrencies as a primary method of exchange, potentially replacing traditional financial instruments like credit cards."
