Changpeng Zhao has urged AI projects to reconsider launching their own tokens, stating that AI agents can accept payments using existing cryptocurrencies instead.

In a recent post on X, the Binance founder argued that tokens should only be introduced when a project reaches significant scale and has clear utility.

The AI & Big Data token market has seen a 22% decline over the past 30 days, now valued at$27.44 billion, according to CoinMarketCap. Some of the biggest losses include Virtuals Protocol (VIRTUALS) dropping by 42%, Render (RENDER) by 30%, and Near Protocol (NEAR) by 26%.

Analysts suggest that these declines stem largely from macroeconomic pressures, such as Donald Trump's tariffs and uncertainty over US regulatory policies. The impact has extended beyond crypto, with Nvidia's stock falling 6% amid concerns over AI chip restrictions.

Beyond market conditions, some experts share Zhao's view on the limited utility of AI tokens. Coinbase analyst David Han believes much of the recent AI token hype was driven by speculation rather than actual demand.

On-chain investigator ZachXBT also criticised the industry, claiming that 99% of AI crypto projects are scams and that many mislead investors by presenting their tokens as having real utility.

For more information on these topics, visit diplomacy.edu.