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

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.

“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.”

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.

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.

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.

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.