Binance Founder Issues Crucial Note to AI Agent Developers

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 thatAI 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 speculativetokens 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.

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.

— CZ 🔶 BNB (@cz_binance) April 2, 2025

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.