Economist Alex Krüger Calls Crypto A 'Failed Asset Class' — But Says Bitcoin And Blockchain Still Matter

• Alex Krüger said on Wednesday that crypto has failed as an asset class, calling most tokens "worthless."
• Despite his criticism, Krüger said blockchain adoption continues to grow through stablecoins and tokenization.
• His remarks sparked pushback from industry leaders, reigniting debate over crypto's long-term value.

Economist Alex Krüger sparked debate across the crypto industry on Wednesday after contending that crypto has largely “failed as an asset class” even as blockchain-based applications continue gaining traction.

Krüger, the Founder of Aike Capital, said on X that most crypto assets are either "worthless" or do little to reward holders over time, while accusing many founders of exploiting weak industry guardrails and selling tokens into retail demand. He also pointed to the meme-coin boom and a rise in decentralized-finance (DeFi) exploits as factors that have damaged investor confidence.

While Krüger was critical of the investment case for most cryptocurrencies, he said that blockchain-based products continue to find broader use. He highlighted growing stablecoin adoption, increasing interest in tokenized real-world assets, and rising activity in equities and commodities perpetual futures markets.

Additionally, Krüger described Bitcoin (BTC) as one of the few survivors from crypto's early days. Bitcoin’s price was trading at $66,781, down over 3%, during the past 24 hours. On Stocktwits, retail sentiment around BTC remained in the ‘extremely bearish’ zone, while chatter around it stayed at ‘high’ levels over the past day. 

Mixed Industry Response

Krüger's comments drew both support and criticism from market participants.

Cookie DAO, a decentralized crypto analysis platform, agreed with Krüger's broader thesis, describing the current environment as a "rebirth" in which investors are focusing less on narrative-driven token valuations and more on metrics such as users, revenue, retention, and value capture.

Others challenged parts of Krüger's thesis. For instance, CoinFund CEO Jake Brukhman pushed back on Krüger's criticism of decentralized artificial intelligence (AI) projects, arguing that the sector is tackling significant technical challenges and could capture meaningful economic value as AI infrastructure expands.

Meanwhile, crypto analyst Zynx rejected Krüger's suggestion that capital is rotating from Bitcoin into Zcash (ZEC), saying that Bitcoin remains the only asset that matters within the sector.

Zcash’s price was up over 8% during the past 24 hours. On Stocktwits, the retail sentiment around ZEC remained in the ‘bearish’ zone, while chatter around it stayed in the ‘low’ levels over the past day.

Blockchain Keeps Growing

Krüger comments come at a time when parts of the blockchain industry are expanding even as many crypto tokens struggle to hold investor interest. Stablecoin supply has crossed $320 billion, while BlackRock's tokenized money-market fund has grown to about $2.5 billion in assets. Krüger also pointed to the recent rally in Zcash, a privacy-focused cryptocurrency.

Read also: Wall Street Rewards Bitcoin Miners' AI Pivot: Bernstein And Morgan Stanley Lift Targets, But Leave MARA Behind

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