Binance founder Changpeng Zhao (CZ) has once again addressed a persistent issue within the cryptocurrency space. He argues that while countless crypto projects now carry the "AI" label, the vast majority offer little to no real utility. CZ advocates for a shift towards practical, functional applications at the intersection of artificial intelligence and blockchain, moving away from pure token price speculation.
Speaking at the recent Token2049 conference in Dubai, CZ highlighted the current market saturation. "There are too many AI Agents in the market now, each with its own token, but most of them are essentially useless," he stated. "What I want to see are AI Agents with real utility that can genuinely help people through the use of a token."
He expressed particular concern over the ease with which new AI tokens can be created, noting that some platforms allow for the one-click generation of an AI project bearing your name. However, he estimates that 99.99% of these tokens serve no practical purpose.
The Transformative Potential of AI on Blockchain
Beyond the current hype, CZ believes AI represents a foundational shift that will completely reshape the cryptocurrency user experience. He envisions AI revolutionizing how people interact with blockchain technology, from application interfaces to customer service workflows and sophisticated risk monitoring systems.
He reflected that it's somewhat unfortunate the crypto industry developed before the AI boom, as it now must undergo a significant transformation to properly integrate and embrace powerful new AI technologies. CZ revealed that his own educational platform, Giggle Academy, is already deeply integrated with AI, particularly for overcoming language translation barriers.
Why Crypto is the Native Currency for AI
CZ proposed that the synergy between AI and cryptocurrency is more natural than many people realize. "The currency for AI is crypto assets," he asserted.
He explained that traditional payment systems are ill-suited for AI-driven agents. An AI cannot use a credit card or receive an SMS verification code. "These mechanisms simply don't work for AI. What they need to use is cryptocurrency," CZ said, pointing to digital assets as the native financial layer for autonomous AI operations.
A New Data Economy Powered by Blockchain
CZ also identified a critical, yet often overlooked, challenge facing the AI industry: the potential scarcity of high-quality training data. He suggested that blockchain technology offers a compelling solution for the future of data collection.
By leveraging blockchain, new data could be gathered in a way that prioritizes and verifies individual privacy. This approach would not only protect user data but also create a framework where individuals could be compensated for the value their data provides, allowing them to explore more strategies for participating in the new data economy.
Frequently Asked Questions
What is an AI cryptocurrency token?
An AI cryptocurrency token is a digital asset associated with a project that integrates artificial intelligence technology. Ideally, the token is used to access, power, or pay for services within an AI-driven platform or ecosystem.
Why does CZ believe most AI tokens are useless?
CZ argues that many projects simply use the "AI" label as a marketing tactic to generate hype and attract investment, without developing any substantive technology or providing real utility that justifies the existence of their token.
How can blockchain and AI work together effectively?
Effective integration can include using crypto for AI agent transactions, employing blockchain for secure and transparent AI training data marketplaces, and deploying AI to enhance blockchain security, user experience, and analytics.
What is the problem with AI training data?
The vast amount of publicly available data used to train current AI models is being depleted. There is a growing need for new, high-quality data sources while simultaneously addressing serious user privacy concerns.
What would a 'useful' AI token look like according to CZ?
A useful AI token would be integral to a functioning AI agent or service. It would provide clear value, such as granting access to a powerful AI tool, compensating users for their data, or facilitating machine-to-machine payments in a way that traditional finance cannot.
How can users identify serious AI crypto projects?
Look for projects with a working product or a detailed technical whitepaper, a clear use case for the token that is essential to the platform's function, and a team with credible experience in both AI and blockchain development. Always get advanced methods for conducting thorough research before making any investment.