Author: 0xJeff , Crypto KOL
Compiled by: Felix, PANews
Driven by the global AI wave, crypto AI Agent has set off a craze, and many AI Agent projects have sprung up. How to successfully build an Agent project? What are the common misunderstandings? Crypto KOL 0xJeff published an article summarizing common pitfalls.
Over the past few months, I’ve spoken with hundreds of AI agent teams. Many of them fall into the same common pitfalls. Here are seven of the biggest mistakes I’ve seen in those conversations, along with tips on how to avoid them.
1. Imitate the pioneers
Virtuals Protocol pioneered the tokenized narrative of AI agents. By working with top teams, we continue to build innovative agents. Virtuals Protocol has captured over 50% of the AI agent market share with superb storytelling and narrative building.
Many teams believe they can replicate the success of Virtuals Protocol by tokenizing the proxy, pairing it with their own token, and launching on a new L1/L2 (expecting immediate PMF). (Note: PMF refers to the best product-market fit)
In practice, this does not work for two main reasons:
There are already too many proxy tokens in the market, and simply launching another proxy token is not enough.
VIRTUAL/Agent LP pair structures are tricky, especially for early-stage projects with low liquidity. Altcoins: LP pairs for altcoins are inherently fragile, leading to higher volatility and impermanent loss. Liquidity providers (LPs) will shy away from them, leading to lower liquidity and extreme slippage.
What to do:
Find a unique niche that solves a real problem in a specific field.
Choose LP pairs of altcoin: mainstream coin or altcoin: stablecoin. They are more robust in structure, especially in volatile markets.
2. The founder/co-founder doesn’t know how to sell
Many teams are built by developers who don’t understand sales. If the founder, as the top salesperson, is not interested in his own product, why should he expect others to be interested?
Marketing efforts over and over again, driven by the founders and the team (when the team is actively participating in CT and constantly talking about their product) is organic marketing. People see it, get curious, try it, and give feedback. No need to burn money or tokens to acquire users.
3. Create products that fit the narrative
Forking Compound, AAVE, OHM or Solidly at that time - just because it was popular at the time.
Launching AI agents—just because it’s popular.
Building without understanding the problem you’re solving or who you’re serving is one of the quickest ways to fail.
Before you build, ask yourself:
Who are the real customers?
Is it built because of hype or because it solves a real need?
Are you forcing your product into a market that doesn’t exist?
Is your own token an actual product?
4. Launching a token before product launch
Launching a token before the product is live makes the token the main focus. Even worse: the team starts selling tokens, rushing to list on exchanges, and neglecting product development.
This will never end well, with no product, no revenue, no traction, and no reason for people to hold tokens.
What should be done is:
Find some form of PMF before launching a token.
Tokens should only be issued when there is a clear network effect and actual value accumulation.
5. Skipping the “V” in MVP
MVP = Minimum Viable Product. But many teams skip the “viable” part and launch a useless, minimal product that no one cares about.
An MVP should be a very basic but fully functional product that early users can try out — this way you can gather feedback and iterate on the product.
What should be done is:
Have real communication with users.
Understand their needs and then build a product that users will actually use.
Don’t get hung up on your assumptions until you’ve proven true value.
6. No clear KPIs, goals or vision
Some teams drift aimlessly: chasing trends, blaming the market, and reacting instead of executing a clear plan.
What should be done is:
Set clear, measurable KPIs from day one.
Define what success looks like — what problem are you solving, what are the important milestones
If something isn't working change direction, no one gets it right the first time.
7. User vs Investor Expectations
There are two types of products in the Web3 project:
Tokens
Actual product
This means attracting two types of supporters:
Speculators: Speculate on tokens
Real users: People who care about the product
Many projects have fallen into the KOL trap: paying unreliable KOLs to promote their tokens. The result is that they attract a large number of Degens who don’t care about the product, and when the price drops or the airdrop is disappointing, they will blindly follow, sell, and call the project a scam.
What to do:
Have a strategy for marketing targets
Don’t sell the token. Instead, clearly outline the token economics and value accrual — why the token exists and how it will benefit users.
Instead of wasting stablecoins and tokens on KOLs, it is better to make real partners stakeholders.
Speculators and real users have different needs. One wants to use the product, the other wants to buy low and sell high. Supporters will appear for both, but make sure you attract and incentivize the right people.
Summarize
Avoid these common mistakes, focus on real user needs, and build something that really matters. The market will reward those who create real value, not those who chase trends, hype, or short-term speculation.
Good projects are not built overnight, nor are they built by imitating other people's projects. Take the time to understand your users, improve your products, and develop a sustainable strategy. The success of Web3 projects comes from innovation, execution, and resilience, not just launching a token or following a narrative.
If you want to be in it for the long term, you have to work for the long term.
Related reading: Reflection on the AI agent entrepreneurship model: Attention is not everything, real demand is the key
