Entrepreneur Tips: 7 Common Traps for Building AI Agent

Author: 0xJeff , Encryption KOL

Compiled by: Felix, PANews

Driven by the global AI wave, encrypted AI Agent has set off a craze, and many AI Agent projects have emerged like mushrooms after a rain. How to successfully build an Agent project? What are the common misunderstandings? Encryption KOL 0xJeff published an article summarizing common pitfalls.

In the past few months, we have talked with hundreds of AI agent teams. Many teams fall into the same common pitfalls. The following are 7 major mistakes found in the conversation, and based on this, we propose ways to avoid them.

1. Imitation pioneer

Virtuals Protocol pioneered the tokenized narrative of AI agent. Continue to build innovative agents by working with top teams. Virtuals Protocol accounts for over 50% of the AI ​​agent market share with its superb storytelling and narrative construction.

Many teams believe that they can replicate the success of Virtuals Protocol by tokenizing the agent, pairing it with their own tokens, and launching it on the new L1/L2 (expecting to get PMF immediately). (Note: PMF refers to the product and the market reaching the best fit)

In fact, this is not working, for two main reasons:

• There are already too many proxy tokens in the market, and it is not enough to just launch another proxy token.

• VIRTUAL/Agent LP is tricky for structure, especially for early stage projects with low liquidity. Altcoins: The LP of altcoins is inherently fragile and can lead to high volatility and impermanence losses. Liquidity providers (LPs) avoid them, resulting in lower liquidity and extreme slippage.

How to do:

• Find a unique niche that solves practical problems in specific areas.

• Choose altcoin: mainstream coin or altcoin: a stablecoin LP pair. They are more structurally robust, especially in volatile markets.

2. Founder/Co-Founder does not know how to sell

Many teams are formed by developers who don’t know how to deal with. As the number one salesperson, if the founder is not interested in his own products, why should he expect others to be interested?

Carrying out the founder-led, team-driven marketing work (when the team actively participates in CT and constantly talks about their products) is organic marketing. People will be curious after seeing it, and try it out, and then give feedback. No need to burn money or tokens to acquire users.

3. Create a product that fits the narrative

Forked Compound, AAVE, OHM or Solidly at the time—just because there was popularity at the time.

Launching AI agents - just because they are popular.

Building without understanding the problem to be solved or the object to be served is one of the fastest ways to fail.

Ask yourself before building:

• Who is the real customer?

• Is it built because of hype or because of solving actual demand?

• Are you forcibly pushing your products into a non-existent market?

• Is your token an actual product?

4. Launch tokens before the product goes online

The token will become the main focus when the product is launched before it is launched. What's worse: the team started selling tokens, competing for listing on exchanges, and neglecting product development.

This move will never have good results, without products, revenue and attraction, and without reason to hold tokens.

What should be done is:

• Find some form of PMF before launching the token.

• Tokens are issued only if there are obvious network effects and actual value accumulation.

5. Skip "V" in MVP

MVP = Minimum viable product. But many teams skipped the “viable” section and launched a useless, minimal product that no one cares about.

MVP should be a very basic but fully functional product that allows early users to try – so you can collect feedback and iterate the product.

What should be done is:

• Have real communication with users.

• Understand their needs and create a product that users will really use.

• Don't stick to your assumptions before proving true value.

6. No clear KPI, goal or vision

Some teams are aimlessly following the trend: chasing trends, blaming the market, responding passively instead of executing clear plans.

What should be done is:

• Set clear and measurable KPIs from day one.

• Define what is success—what problems are you solving, what are important milestones

• If some aspects don't work, change directions and no one can do it right in one go.

7. User vs Investor expectations

There are two products for the Web3 project:

• Tokens

• Actual products

This means attracting two types of supporters:

• Speculator: Speculating on tokens

• Real users: people who care about products

Many projects fall into the KOL trap: pay unreliable KOLs to sell their tokens. The result is a large number of Degens who don’t care about their products, blindly following, selling off when prices fall or airdrops are disappointing, and calling the project a scam.

How to do:

• Have strategies for marketing targets

• Don't sell tokens. Instead, a clear overview of token economics and value accumulation—why tokens exist and how to benefit users.

• Instead of wasting stablecoins and tokens on KOLs, let real partners become stakeholders.

Speculators and real users have different needs. One wants to use the product, the other wants to buy low and sell high. Supporters of both will appear, but make sure that the right people are attracted and motivated.

Summarize

Avoid these common mistakes, focus on real user needs, and build something that really matters. The market will give generous rewards to those who create real value, not those who chase trends, hype or short-term speculation.

Good projects are not achieved 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 a Web3 project comes from innovation, execution and resilience, not just launching a token or following a certain narrative.

If you want to participate in it for a long time, you must work hard for long-term development.

Related Reading: Reflecting on the AI ​​Agent Entrepreneurship Model: Attention is not all, real needs are the key