Binance News: Changpeng Zhao Advocates for Utility Over Tokens in AI Projects

In a recent statement, Binance CEO Changpeng Zhao has offered his perspective on the proliferation of AI tokens in the cryptocurrency market, urging projects to prioritize utility over the issuance of new tokens.

Changpeng Zhao Urges AI Projects to Focus on Utility Over Tokens

Binance CEO Changpeng Zhao has expressed an "unpopular opinion" stating that not every AI agent needs its own token. He urged AI projects to take payments in existing tokens and only launch their own if they achieve significant scale. This sentiment echoes among analysts as the total market cap of AI & Big data tokens has declined by approximately 22% in the past 30 days, according to CoinMarketCap. Many AI tokens have seen double-digit declines, with Virtuals Protocol (VIRTUALS) down by 42%, Render (RENDER) by 30%, and others also experiencing losses.

Binance CZ’s AI Vision: Ditch the Token Hype, Build Real Utility

CZ, Binance’s former CEO, advocates a pragmatic approach to AI agents and cryptocurrencies. He suggests that AI agents should use existing crypto for fees rather than launching endless new tokens. Developers can integrate tokens based on APY, rewarding agents for usage and engagement. CZ emphasizes focusing on AI utility to avoid diluting existing crypto value.