Do AI Agents Need a Token? CZ Weighs In

In recent months, AI agents have been making waves across the tech and cryptocurrency industries, capturing the attention of developers, investors, and enthusiasts alike. These autonomous, AI-powered systems have gained serious traction, especially within the crypto community. 

MarketsandMarkets reports that the AI agent market hit $5 billion in 2024 and is projected to reach $47 billion by 2030.

As of early December 2024, Solana commanded more than half (56.48%) of the market share for AI agents, with a market cap of $8.44 billion. Driven by projects like Truth Terminal, Virtuals Protocol, and aixbt, the network also captured 64.34% of “crypto Twitter” mindshare. This surge reflects a growing fascination with how AI can automate tasks, manage portfolios, and interact with blockchain ecosystems, marking a transformative moment in both AI and crypto narratives.

Now, Changpeng Zhao (CZ), Binance founder and former CEO—has weighed in on the conversation with a thought-provoking opinion. 

On March 17, CZ tweeted, “On AI agents, I have an unpopular opinion: While crypto is the currency for AI, not every agent needs its own token.”

He believes that Agents should focus on utility and only launch tokens after achieving scale. This statement has sparked a lively debate about the necessity of tokenizing AI agents and the future of their integration with blockchain technology. 

Let’s dive into CZ’s perspective, explore what AI agents are, and consider insights from other experts to unpack this complex issue.

What Are AI Agents?

AI agents are autonomous, intelligent systems designed to perceive their environment, make decisions, and take action to achieve specific goals with minimal human intervention.

Unlike traditional AI chatbots, which often follow rigid scripts or lack memory across sessions, AI agents use advanced machine learning models—such as large language models (LLMs)—to learn, adapt, and improve over time. They’re like tireless digital assistants, capable of handling tasks like automated trading, portfolio management, blockchain interactions, and even content creation on social platforms.

For example, projects like Virtuals Protocol on Coinbase-incubated Base blockchain allow users to create and deploy AI agents that interact directly with decentralized applications (dApps) and smart contracts. These agents can hold cryptocurrencies, execute trades, and analyze market trends in real-time. 

AI agents operate independently, leveraging data and real-world inputs to make smart decisions, making them a powerful tool for businesses and individuals. Their ability to collaborate, adapt, and scale has fueled their rapid rise in popularity, particularly in the crypto space.

CZ’s Perspective: Utility Over Tokenization

CZ’s opinion cuts against the grain of the current trend, where many AI agent projects rush to launch their own tokens to attract investors and build ecosystems. He argues that not every AI agent needs a unique cryptocurrency token. Instead, these agents can simply accept fees in other cryptocurrencies - likely established ones like ETH, BNB, or SOL for their services. This approach, he suggests, keeps the focus on utility—the real-world value and functionality an AI agent provides—rather than speculative token launches that can flood the market and dilute value.

CZ emphasizes launching a token only “if you have scale,” meaning projects should prioritize building a robust, widely adopted system before introducing a new coin. His stance reflects a broader concern about market oversaturation. 

Notably, some AI-related tokens have seen a slight decline in value shortly after CZ’s comment, indicating the market’s sensitivity to influential voices. CZ’s focus on utility aligns with his long-standing philosophy of prioritizing practical, scalable solutions over hype-driven speculation—a principle that helped Binance become a crypto giant.

Expert Insights and Industry Reactions

CZ’s opinion resonates with other industry leaders. Vitalik Buterin, co-founder of Ethereum, and Arthur Hayes, co-founder of BitMEX, have echoed similar sentiments, stressing the importance of building utility before token issuance. Buterin, in particular, has long advocated for blockchain projects to prioritize functionality and adoption over premature token launches, which can lead to speculative bubbles.

On X, CZ’s post triggered a flood of reactions. Kevin Simback, COO of Delphi Labs, emphasized that it was not an unpopular opinion. “Many believe we’ll have billions of agents soon. Imagine the fragmented mess if they all had tokens,” he said. OpenLedger core contributor Kamesh also argued that “utility-first specialized agents will outcompete token-first ones.” He added that “the agent economy should be demand-driven, not speculation-driven.” 

Some projects, such as Virtuals Protocol and SingularityNET, have integrated tokens into their AI agent networks. These tokens enable co-ownership, revenue sharing, and incentivizing developer participation. In certain instances, tokens can encourage innovation and strengthen community participation. On the other hand, token launches without proper scale or utility risk market manipulation, investor losses, and damage to trust in the crypto industry.

Why This Matters for the Future

CZ’s perspective offers a valuable lesson for the AI and crypto industries. While AI agents hold immense potential to revolutionize how we interact with blockchain technology, their success shouldn’t hinge on creating yet another token. Instead, developers should focus on building practical, scalable solutions that deliver real value—whether that’s automating trades, enhancing security, or improving user experiences. Tokens can play a role, but only when they serve a clear, necessary purpose and are backed by a mature, widely adopted project.

While AI agents are transforming the crypto landscape, their need for tokens remains a contentious issue. CZ’s opinion challenges the status quo, urging the industry to prioritize substance over speculation. As the market evolves, the balance between utility and tokenization will shape the future of AI agents—and the broader blockchain ecosystem.