ZachXBT Warns of Rampant Scams

Prominent on-chain sleuth ZachXBT has raised the alarm over the proliferation of AI agent tokens, calling most of them “scams.”

AI agents remain a mainstream topic, a popular crypto industry narrative that caught steam in late 2024 and continues to play as a dominant sector in the space.  

ZachXBT Calls Out AI Agent Tokens

In a recent post on X (formerly Twitter), ZachXBT slammed AI agents, saying that most of the projects in this narrative are scams.

“99% of it [AI agent tokens] are a scam, and the AI agent wrapper grifts are probably worse than other past trends, to be honest. Because at least meme coins promise nothing, whereas AI coins try to larp as much as possible to appear legit to unsuspecting buyers,” he said.

This critique came in response to a query from Justin Taylor, another cryptocurrency commentator, who questioned the necessity of tokens for AI agents. Taylor’s post highlighted the similarity between current AI agent hype and past trends like over-tokenized Web3 games. Taylor added that previous projects used tokens as marketing tools, often to the detriment of investors.

ZachXBT’s remarks align with findings from a recent survey of Solana ecosystem founders, which revealed widespread skepticism about the utility of AI agents. As BeInCrypto reported, most Solana developers see AI agents as overhyped.

“The focus on AI agents distracts from core blockchain innovation. They’re more of a gimmick than a necessity in the space,” one respondent noted.

This outlook aligns with ZachXBT’s concerns about the inflated promises of AI agent tokens. Despite the criticism, however, not everyone in the crypto space shares the negative stance. Haseeb Qureshi, the founder of Dragonfly Capital, has predicted a surge in AI agents’ adoption by 2025. He believes these agents will streamline tasks like trading, data aggregation, and governance voting, making them indispensable in decentralized ecosystems.

Furthermore, a recent BeInCrypto analysis of top crypto trends for 2024 highlighted AI agents as a key driver of innovation. Experts predict that by next year, AI agents could handle over 80% of blockchain transactions, transforming industries like DeFi, NFTs, and supply chain management. These optimistic forecasts suggest that while scams exist, the underlying technology holds transformative potential.

Meanwhile, the hype surrounding AI agents has already had market implications. Tokens like VIRTUAL have rallied significantly, fueled by their association with AI agent projects.

As BeInCrypto reported, VIRTUAL’s price surged over 30% in recent weeks, despite a lack of clear utility for its token beyond speculative interest. This mirrors previous speculative bubbles, where the market frenzy overshadowed practical use cases.