Crypto Is A ‘Failed’ Asset Class, Says Renowned Economist
Alex Krüger says “old crypto” has largely failed as an investable asset class because most tokens have weak or no value accrual, founders and insiders have dumped on retail, memecoins fueled speculation, and DeFi hacks have damaged trust. He argues the weak token model, not blockchain itself, is the problem. He still sees strong growth in blockchain-linked areas: stablecoins, tokenization, prediction markets, perps, AI, and privacy. In his view, these are increasingly “blockchain” or infrastructure plays rather than traditional crypto narratives. He favors tokens that capture real revenue, demand, or buybacks, citing Hyperliquid as an example. He also says privacy-focused assets like Zcash and selective AI projects like Venice still have real use cases. His bottom line: broad narrative-driven crypto exposure has failed, but a new market centered on TradFi infrastructure, prediction markets, AI, and privacy could still emerge.
