- 99% of AI coins are scams, claims ZachXBT.
- AI tokens are worse than meme coins because the latter accepts that it is just for fun, ZachXBT said.
- Community members clashed over the reasons for AI agents having their own tokens.
The AI tokens debate gained traction when blockchain investigator ZachXBT pointed out that most AI projects do not need their own cryptocurrencies. This led to a lively discussion across social media, questioning the value and necessity of AI needing tokens
Despite a massive rally in 2024, where Virtuals Protocol (VIRTUAL), gained over 8,000%, due to its focus on AI and the Metaverse, critics argue that many AI tokens lack utility. While a few projects may benefit from issuing tokens, most fail to justify their existence.
The Controversy Unfolds
Entrepreneur Justin Taylor questioned the need for AI agents to have their own cryptocurrencies. ZachXBT argued that 99% of AI cryptocurrencies are scams, adding that “AI agent wrapper grifts are probably worse than other past trends.”
The investigator emphasized that while meme coin projects do state that they do not have any inherent value and are just for fun, AI projects market their cryptocurrency as being very useful but eventually, these virtual assets have no inherent value.
Taylor compared the situation to Web3 games that launched with unnecessary tokens and NFTs. An X user “Alex” reasoned with Taylor, adding that while AI agents can work without tokens, they are issued so as to incentivize developers.
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Exploring Potential Solutions
Co-founder of AI firm Shapes Inc., Noorie, stated that the tokens are important so that the participants in the AI project can have a say in the day-to-day governance of the protocol–like holding equity.
However, another X user considered this reasoning as a fallacy because once a big company “comes along with a big bag of cash,” the project bails out on token holders whom they used for free fundraising.
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