- CZ Binance: 99.95% of AI agents don’t need an ecosystem token currently
- Advises AI devs: Focus on building product first, token maybe needed after PMF
- Context: AI agents see rising adoption, projected 45% CAGR market growth
Binance co-founder Changpeng Zhao (CZ) believes 99.95% of AI agents do not need an ecosystem token.
Zhao thinks many developers in the AI sector pay unnecessary attention to token creation instead of focusing first on building functional agents.
In a recent post on X (formerly Twitter), Zhao recommended AI agent developers concentrate on creating good, efficient agents initially.
The former Binance CEO thinks a token becomes potentially necessary only after achieving product-market fit for a specific AI agent. Zhao’s stance triggered discussion over project funding needs and developer motivations.
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Does AI Agent Development Require Token Funding?
One respondent to Zhao cited Research and Development (R&D) costs as a notable area where new development teams require significant start-up funding.
The respondent highlighted profit-making as a primary goal driving many investment teams funding tech projects. This pressure often pushes AI agent developers to seek ways of generating funds early, sometimes including minting native project tokens before a product is fully developed or validated.
Zhao acknowledged fundraising using tokens as a crucial use case for crypto and blockchain technology. However, he emphasized that agent creators should focus primarily on building useful products after raising capital, not concentrate mainly on token price promotion or secondary market mechanics.
What is Driving Broader Interest in AI Agents?
In the meantime, it is crucial to note that AI agents are gaining traction across several business applications. They represent one of the sectors projected for significant growth in the future, considering their use cases and widespread adoption. According to experts, the market for AI agents will grow at a high 45% Compound Annual Growth Rate (CAGR) over the next five years.
This projected growth reportedly revolves around AI agents’ increasing compatibility with existing business systems. It also involves their potential to work effectively alongside human counterparts in various roles.
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Developers will likely onboard AI agents to learn specific tasks, access relevant company data safely, integrate into existing workflows, and ultimately support or automate aspects of human employees’ responsibilities.
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