Binance Founder Changpeng Zhao Says Only 0.05% of AI Agents Need Tokens

Binance executive Changpeng Zhao (CZ) said that only 0.05% of AI agents need a token, sparking debate in the crypto and AI communities.

His comments highlight concerns that developers are prioritizing token launches over building useful AI products.

Changpeng Zhao’s Take on AI Agent Tokens

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The crypto executive shared his thoughts on X (Twitter), cautioning AI developers about focusing too much on launching tokens instead of creating functional AI agents.

“Too many AI agent developers focus too much on their token and not enough on the agent’s usefulness. I recommend making a really good agent first. Only launch a token when there is product-market fit,” CZ shared.

According to Changpeng Zhao, 99.95% of AI agents do not need a token. The Satoshi Club almost shares this sentiment, indicating a narrowly different estimate of 95%.

Amidst these discussions, a popular crypto analyst, Cato, highlighted AI developers’ difficulties in securing funding. He noted that research and development (R&D) costs for AI agents can be substantial. Meanwhile, many investment firms primarily focus on financial returns.

“…for many investment institutions, making money is their primary goal. After they invest in products, they will force the products to be improved as soon as possible and then make profits,” Cato stated.

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This raises concerns about whether investors would be willing to bear the “silent cost” of AI agent development without the incentive of a token.

While Changpeng (CZ) Zhao acknowledged the power of crypto fundraising, he emphasized that raising money via tokens should not be the end goal.

“Raising money using tokens is a powerful use case for crypto, but they should still focus on building after they raise, not just sell the tokens,” he added.

Tokenized AI Agents Losing Ground

Meanwhile, CZ’s comments come when tokenized AI agents struggle to keep pace with non-tokenized competitors. Data from Cookie.fun indicates a slowdown in the launch of new AI agent tokens.

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Moreover, the market capitalization of AI agent tokens has dropped by nearly 10% to $5.62 billion in the last 24 hours.

These data reflect waning investor enthusiasm and suggest that excitement around AI-driven crypto solutions is cooling.

The slowdown in new token launches hints that the sector’s focus is shifting from innovation to financial gains, potentially limiting fresh ideas and real-world use cases.

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On the other hand, non-tokenized AI agents continue to thrive, gaining more attention due to their focus on real-world applications rather than speculative trading. Specifically, data from the AI Agents Directory indicates an average monthly increase of 36% in AI agents.

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However, despite the growing interest, Web3-based artificial intelligence solutions still account for a minimal fraction (3%) of the overall AI agent ecosystem.

Therefore, CZ’s comments are a wake-up call for AI developers and investors. While tokenization can be a valuable fundraising tool, prioritizing genuine product-market fit is essential for long-term success.

Projects focusing on building practical, non-tokenized solutions may outlast those driven primarily by financial speculation.