Only 0.05% of AI Agent Tokens Are Needed, Says CZ in Bold Warning

Key Points

• Only 0.05% of AI Agent Tokens Are Needed, Says CZ in Bold Warning
•  Tokenized agents fall behind as builders shift focus
•  AI token market drops 10% in 24 hours
•  Devs urged to build real products before launching tokens

Binance founder Changpeng Zhao (CZ) is once again turning heads—this time with a bold claim that only 0.05% of AI agents actually need tokens. In a recent post on X (formerly Twitter), CZ criticized the growing trend among developers to prioritize launching tokens over building useful AI products. His message was clear: if your AI agent doesn’t solve a real-world problem, it probably doesn’t need a token.

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 🔶 BNB (@cz_binance) April 2, 2025

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

His comment echoes growing industry frustration over the flood of token launches that promise utility but rarely deliver. It also comes at a time when AI token activity is slowing down. According to Cookie.fun, the market capitalization of AI agent tokens has dropped by 10% in just 24 hours, now sitting at $5.62 billion.

Some experts agree with CZ’s warning. Cato, a well-known crypto analyst, pointed out the funding challenges AI developers face. “R&D costs for AI agents are high,” he said. “But many investors just want a quick return. Without tokens, it’s hard to secure funding—but with them, teams are often pushed to deliver profits over products.”

So how to obtain R&D funds is a big problem, which may bother most R&D teams. At the same time, 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…

— Cato_猫叔 (@Cato_CryptoM) April 2, 2025

It’s not the first time CZ has taken a strong stance on project fundamentals. Earlier this week, he made headlines with his viral April Fools’ burn address joke—check it out here.

Non-Tokenized AI Agents Quietly Winning the Race

While tokenized agents face slowing growth, non-tokenized AI agents are thriving. New data from the AI Agents Directory reveals a 36% monthly growth rate for these types of projects. Unlike tokenized solutions, these agents are being adopted for real-world use—automating tasks in sectors like healthcare, logistics, and customer service.

Despite this momentum, Web3-based AI agents still only represent around 3% of the broader AI ecosystem. But that number is expected to grow as the market shifts its focus from speculative token launches to practical applications.

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

The declining trend in tokenized agents also reflects a bigger issue in the space: financial speculation is outpacing actual innovation. This is something that’s also been seen in other areas of the Binance ecosystem. For instance, the recent BNB Perpetual Futures launch on Coinbase sparked major buzz, but traders are now calling for more clarity and long-term utility.

As CZ puts it, “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.” It’s a warning that applies not just to AI agents, but to the entire blockchain space.

Tokenized AI Agents’ performance. Source: Cookie.fun – Techtoken

Token Hype Hurting Innovation Across Binance Ecosystem

CZ’s remarks on AI agent tokens shine a broader light on an ongoing issue—token hype is hurting innovation, and not just in AI. Binance has faced similar scrutiny across its platform. From the Binance token listings being seen as pump-and-dump catalysts, to security breaches like the Binance and Gemini data leak, the pressure is on for the platform to rebuild trust by backing real value.

Non-tokenized AI agents growth trend. Source: AI Agents Directory – Techtoken

One standout example of building for utility is the Binance Wallet and PancakeSwap collaboration to launch KiloEx. Despite a 2,300% TGE (Token Generation Event) surge, the project has managed to keep the focus on infrastructure and product quality—rather than quick gains.

CZ’s call to “build before you tokenize” applies across the board. Whether it’s AI agents or DeFi tools, the message is the same: Utility drives longevity. Hype may bring in attention, but it rarely builds sustainable value.

His 0.05% figure might seem extreme, but the data suggests he’s on point. Projects that put function over fundraising are gaining traction. And in the long run, real solutions—not tokens—will define the future of AI and Web3.