CoinMarketCap research director warns: AI tokens lacking practical use may go to zero

CoinMarketCap research director warns: AI tokens lacking practical utility may be zeroed

CoinMarketCap research director Alice Liu warned in an interview with Cointelegraph that many artificial intelligence (AI)-themed cryptocurrencies launched in the previous market cycle face a serious risk of zeroing in value. According to Liu, these tokens were initially marketed with the AI concept, but over time, they have essentially evolved into "meme coins", meaning that there is no real utility or substantial technical support behind them. She pointed out that the risk of such tokens is that their value will gradually approach zero over time.

At the same time, Liu made it clear that this warning does not apply to all AI-related encryption projects. She admitted that there are indeed truly solid projects in this field, with sound infrastructure and practical effectiveness. However, she pointed out that even these fundamentally strong AI tokens may face discounts in the market because they are often classified as low-quality, meme-like AI tokens, undermining trust in the entire category.

Liu also noted that it is generally easier for investors to invest money in AI-related stocks rather than AI-themed crypto tokens. This suggests that compared to traditional crypto markets, traditional financial markets are currently viewed as a more direct and trustworthy way to participate in AI trends.

Does Alice Liu have credibility in this matter? Does she make her own transactions?

It is reasonable to ask this question before taking any market opinion seriously. Based on her public background, Liu is not known as a trader. Her career path focuses on research and investment analysis rather than proactive trading. She joined JPMorgan in 2015 as an analyst, then worked in digital asset research at WisdomTree, and then served as a senior investment assistant at Coutts, responsible for reviewing and selecting exchange-traded funds (ETFs) in different asset classes for clients 'portfolios. She joined CoinMarketCap in 2022 to build its research department from scratch and has led the team to this day.

Therefore, her credibility stems from her background in research and institutional investment rather than from a public trading log. There is currently no public information showing that she has specific personal trading records or personal returns on earnings in the market. Her public reputation is based on regular research reports, market reviews and industry analysis, rather than verified personal trading results.

Do they really understand the cycles of the crypto market? Have you experienced a full cycle?

She has been involved in the crypto and digital assets space since around 2019 and will take up her current position at CoinMarketCap in 2022, which means she has publicly commented through at least one full market cycle, including previous downturns and recovery phases. Her research reports published on CoinMarketCap typically cover market sentiment indicators, data trends on the chain, and narrative shifts in different sectors of the crypto industry, suggesting that she closely tracks cyclical behavior from a data and research standpoint, although this may not come from direct personal trading experience.

Why do people care about her opinion?

The simplest explanation lies in her position, not the results of her personal transaction. As the research director of CoinMarketCap, one of the most visited encrypted data platforms in the world, her comments were able to reach a large audience mainly due to the platform's data aggregation capabilities and reputation. Her opinion carries weight not because it proves any individual's trading skills, but because she has direct access to CoinMarketCap's internal data and observes broad market trends for thousands of tokens that ordinary individual investors cannot see independently.

Did she make a profit from trading? Are there any relevant records?

There are currently no public records confirming Liu's personal trading profits and losses. This is quite common in research and analyst roles in traditional finance and crypto: their public value comes from analysis and commentary rather than from disclosed individual portfolio performance. Therefore, based on publicly available information, this specific claim cannot be verified from any aspect.

Since CoinMarketCap is owned by Binance, does this mean that Binance indirectly takes a negative stance on AI tokens?

This is a really important detail that needs clarification. Yes, CoinMarketCap was acquired by Binance in 2020, with a reported transaction value of between US$300 million and US$400 million, paid as a combination of equity and Binance's own token, BNB. However, at the time of the acquisition, Binance publicly stated that CoinMarketCap will continue to operate as an independent business entity. Binance does not directly interfere with CoinMarketCap's ranking, and CoinMarketCap will not affect Binance's own operations. This is the official position announced by the two companies in 2020.

Having said that, ownership is still ownership after all. Even though CoinMarketCap remains independent in day-to-day operations, it remains a company owned by Binance. When the deal was first announced, industry commentators raised concerns about such conflicts of interest, questioning whether Binance's ownership would ultimately influence what content is highlighted, ranked or commented on through CoinMarketCap's platform.

Will this affect whether AI tokens are listed on Binance?

Judging from the information currently available, there is no direct evidence linking Liu's comments to Binance's own token listing decision. Binance's listing process for new tokens is typically handled by an internal independent team focusing on compliance, liquidity and project due diligence, a process that is completely different from CoinMarketCap's research and editorial commentary. Research opinions published through CoinMarketCap will not automatically translate into Binance's listing policy. However, given that the two companies share ownership of the same parent company, it is reasonable for readers to question whether such public research reviews will ultimately shape the way of thinking within Binance, although the confirmed direct link is not shown here.

A global perspective worth remembering

Whether Liu has a personal recorded transaction log, the core point she makes does not necessarily require such a record to be worth considering. She describes a fairly documented pattern in the history of encryption: Tokens built around popular narratives but lacking the true underlying product or utility tend to depreciate in value once the initial hype fades. This model has resurfaced repeatedly in different narratives over the past few years and is not limited to AI tokens. The ownership link to Binance is an important background to note, but it does not in itself prove that this particular research view is shaped by other factors, other than common and previously observed patterns about how narrate-driven crypto tokens behave after the excitement cools.