Economist and macro trader Alex Krüger has argued that “crypto” has largely 
failed as an asset class, even as blockchain-based adoption accelerates across 
stablecoins, tokenization, prediction markets, perps, AI and privacy-focused 
assets. In a post on X, Krüger drew a sharp distinction between the 
speculative crypto market of recent cycles and the parts of the industry he 
believes are still showing meaningful traction. His central claim was blunt: 
most crypto tokens have failed to produce durable value for holders, while 
founders and insiders have repeatedly used the sector’s weak guardrails to 
extract liquidity from retail investors. “I largely think of ‘crypto’ as a 
failed asset class at this point,” Krüger wrote. “I’ve written about the 
causes multiple times. Mainly, most crypto assets are worthless, or have 
dreadful value accrual, and most founders have abused the lack of guardrails 
and dumped on people indiscriminately, or are outright scammers.” Krüger said 
the damage was compounded by what he called the “Memecoins 
SuperBullshitCycle,” describing it as a speculative trend that “brought the 
worst out of people” and drained both capital and morale from market 
participants. He also pointed to “the never-ending wave of DeFi hacks,” which 
he said has increased sharply since last April, as another factor weighing on 
crypto’s credibility as an investable asset class. Krüger Sees Adoption 
Rising, But Not In “Old Crypto” The economist acknowledged that his assessment 
may seem contradictory, given that several blockchain-linked sectors are still 
expanding rapidly. He cited growing stablecoin adoption, openly pro-crypto 
politicians in the United States, TradFi’s push to tokenize assets, rising 
usage of equities and commodities perps on offshore and DeFi venues, the early 
development of US perps markets, and the increasing presence of prediction 
markets in everyday information flows. Related Reading: Crypto In 401(k)s: 
Senators Sanders, Warren Letter Warns $14 Trillion At Risk From DOL Proposal 
But Krüger framed many of those trends as “more ‘blockchain’ than ‘crypto’,” 
suggesting that the infrastructure and application layer may be advancing 
while the legacy token market remains structurally weak. In his view, the key 
exception is where tokens have clearer links to revenue, user demand or 
capital return mechanisms. “A few among those exceptions even distribute most 
revenue to holders via buybacks,” he wrote, naming Hyperliquid in particular. 
“Which is what every investor actually wants to see to be invested in a good 
business rather than a fleeting narrative.” That distinction sits at the core 
of Krüger’s argument. He is not saying that blockchain-based markets are dead. 
Rather, he is saying that broad, narrative-driven crypto exposure has failed 
to deliver the kind of value accrual investors were promised, while a narrower 
group of sectors has begun to resemble operating businesses or infrastructure 
plays. Privacy And AI Stand Out Krüger identified privacy as one of the few 
“old school” crypto categories that remains relevant. He argued that demand 
for private, non-custodial stores of value is real, even if part of that 
demand comes from illicit flows. He referenced the US Department of Justice’s 
confiscation of $15 billion in Bitcoin from Cambodia-linked pig butchering 
operations, saying the legal filing was submitted on October 8, 2025. Related 
Reading: $12.6 Trillion Schwab Targets Mid-2027 Crypto Trading Rollout For 
Advisors “Of course, everyone needs privacy, not just criminals, but crime 
flows are real, and large,” Krüger wrote. “The asset attracting the most flows 
in this niche is Zcash. Zcash’s recent performance has been fascinating, as it 
has been trending higher with bitcoin trending lower, a sign of real 
reallocation among bitcoiners.” The other category Krüger said is not dead is 
AI. Still, his view of the sector was selective. He described most AI tokens 
as “high flying, fundamentally lacking, narrative driven tokens,” while naming 
Venice as a standout because he sees it as tied to a private AI platform with 
growing users and revenue. That leaves Krüger with a more nuanced conclusion 
than the headline claim alone suggests. He sees the old token market as 
broken, but not the broader direction of crypto-enabled infrastructure. 
Stablecoins, tokenized assets, prediction markets, perps, AI and privacy may 
form the sector’s next investable narrative, provided the tokens attached to 
them can show actual value capture rather than recycled speculation. “So one 
could say old ‘crypto’ is a failed asset class,” Krüger wrote, “but from the 
ashes come new beginnings, and the new face of crypto is one heavily dominated 
by the needs of Tradfi, prediction markets, AI, and privacy.” His closing line 
captured the contradiction he sees in the market: “Crypto sucks. Long live 
crypto.” At press time, the total crypto market cap was at $2.28 trillion. 
Featured image created with DALL.E, chart from TradingView.com

Economist and macro trader Alex Krüger has argued that “crypto” has largely failed as an asset class, even as blockchain-based adoption accelerates across stablecoins, tokenization, prediction markets, perps, AI and privacy-focused assets. In a post on X, Krüger drew a sharp distinction between the speculative crypto market of recent cycles and the parts of the &#8230;

Crypto Is A ‘Failed’ Asset Class, Says Renowned Economist

Coinbase froze over $3M in crypto as DOJ, Meta, Microsoft and Starlink 
disrupted Southeast Asia scam networks and 1.4M online accounts.

Coinbase froze over $3M in crypto as DOJ, Meta, Microsoft and Starlink disrupted Southeast Asia scam networks and 1.4M online accounts.

Coinbase freezes $3M as DOJ hits Southeast Asia scam networks

Benchmark&#8217;s shift to larger funds and growth-stage focus may reshape venture 
capital dynamics, attracting diverse investors and altering risk profiles.
The post Benchmark raises two new funds totaling $2 billion, shifts focus to 
mature startups appeared first on Crypto Briefing.

Benchmark&#8217;s shift to larger funds and growth-stage focus may reshape venture capital dynamics, attracting diverse investors and altering risk profiles. The post Benchmark raises two new funds totaling $2 billion, shifts focus to mature startups appeared first on Crypto Briefing.

Benchmark raises two new funds totaling $2 billion, shifts focus to mature startups

Cboe&#8217;s record options volume highlights a shift towards 24/7 trading and 
increased use of derivatives, impacting market dynamics and revenue.
The post Cboe sets monthly ADV record of 22M options contracts in May 2026 
appeared first on Crypto Briefing.

Cboe&#8217;s record options volume highlights a shift towards 24/7 trading and increased use of derivatives, impacting market dynamics and revenue. The post Cboe sets monthly ADV record of 22M options contracts in May 2026 appeared first on Crypto Briefing.

Cboe sets monthly ADV record of 22M options contracts in May 2026

The Bitcoin flash crash highlights the volatility and risks in leveraged 
crypto trading, potentially impacting investor confidence and market 
stability.
The post Bitcoin flash crash below $62K wipes out $1.8B in leveraged bets 
appeared first on Crypto Briefing.

The Bitcoin flash crash highlights the volatility and risks in leveraged crypto trading, potentially impacting investor confidence and market stability. The post Bitcoin flash crash below $62K wipes out $1.8B in leveraged bets appeared first on Crypto Briefing.

Bitcoin flash crash below $62K wipes out $1.8B in leveraged bets

Paybis says 22.5% of businesses use or plan stablecoins for cross-border 
payments as B2B volume reaches 97.8% in early 2026, new data shows.

Paybis says 22.5% of businesses use or plan stablecoins for cross-border payments as B2B volume reaches 97.8% in early 2026, new data shows.

Crypto Is A ‘Failed’ Asset Class, Says Renowned Economist

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