AI Crypto Projects Must Deliver Results

The era of 'AI crypto' projects getting funded based on their whitepaper claims is over. According to Alice Liu, Head of Research at CoinMarketCap, 'The AI tag is free; the market is finally charging for it.'

This shift marks a significant change in how investors approach these types of projects. For two years, writing 'AI' ($0.27 · Live) in your whitepaper was enough to raise capital. But now, real products and actual traction are required.

The market has learned from its mistakes and is no longer willing to fund projects that rely solely on AI narratives. Projects with actual users, transaction volume, and revenue are capturing the majority of new investment. The long tail of AI-labeled projects is being starved of attention and capital simultaneously.

Investors are now asking basic product questions like 'How many users?' and 'What's the retention?' before investing. This marks a significant shift from the previous era where vague claims about machine learning optimization were enough to secure funding.