Anthony Pompliano declared most of the crypto industry is dead and never coming back after spending one day at the Consensus Miami conference, sparking fierce debate across the sector.
Ghost Chains And Zombie Coins Dominate The Landscape
Pompliano explained in a podcast update that the natural business cycle doesn’t play out in crypto.
In traditional industries, failed companies shut down, and investors reallocate capital elsewhere. But blockchains almost never shut down and coins almost never go to zero.
One or two people can keep “ghost chains” running and create the illusion that the blockchain is still alive and in use.
Meanwhile, “zombie coins” lose most of their value and liquidity evaporates, but tokens don’t officially go to zero.
With millions of coins and thousands of blockchains, Pompliano asked the audience at Consensus if anyone believes millions of crypto coins will thrive in the future. Zero people raised their hands.
Mercenaries Replace Missionaries
The industry used to be defined by hardcore missionaries who would rather see Bitcoin (CRYPTO: BTC) succeed than personally make money. Those days are over.
The industry is now filled with mercenaries chasing whichever opportunity offers the biggest financial reward.
This shows up in short-lived meme tokens, scam coins, constant market manipulation, escalating yield farming rates, and vaporware product launches designed to capture attention rather than solve problems.
Legacy Finance Is Eating Crypto’s Lunch
Morgan Stanley (NYSE:MS) recently announced Bitcoin trading on ETrade with cheaper fees than Coinbase (NASDAQ:COIN) and Charles Schwab (NYSE:SCHW). ETrade’s 8.6 million clients will get access, and Morgan Stanley is undercutting the competition.
Crypto native firms are racing to add non-crypto components like equities, prediction markets, options, and commodities.
They need to grow and realize they must expand outside crypto to do it.
“Is Robinhood (NASDAQ:HOOD) a crypto company or a traditional brokerage? Is Coinbase a traditional brokerage or a crypto company?” Pompliano asked, highlighting the melding of legacy finance and crypto.
Saylor’s Shift Signals The New Reality
Michael Saylor mentioned on Strategy Inc.’s (NASDAQ:MSTR) earnings call that he could potentially sell Bitcoin to fund STRC dividend payments.
A few years ago, people would have considered this commentary blasphemous, but the current state of the industry has made it rational.
Bitcoin’s price rose after Saylor’s comments, a major narrative violation for what people thought would happen.
Only Four Areas Will Survive
Pompliano believes only four areas will accrue value moving forward: Bitcoin, stablecoins, infrastructure, and tokenization.
Everything else faces an uphill battle against legacy financial firms with deep pockets and smart people.
“We do not need more carnivals. We do not need more nonsense,” Pompliano stated, referencing a “crypto carnival” booth at Consensus.
Additionally, “We need more people focused on building real solutions for real problems,” he added.
Image: Shutterstock
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