The Crypto Industry Is Dying, That Is A Good Thing, Says Anthony Pompliano

TL;DR

Anthony Pompliano claims that most of the crypto industry is dead, with unused chains and illiquid tokens being cleared out. He argues that this is a necessary process for the sector's evolution into a more integrated financial system.

Key points

Anthony Pompliano claims most of the crypto industry is dead
Unused chains and illiquid tokens are being cleared out
Pompliano faced backlash at the Consensus conference
He argues for a necessary evolution in the crypto sector
A broken business cycle hinders proper market clearing

Anthony Pompliano says most of the crypto industry is already dead and that the market has not fully admitted it yet. In a May 6 video posted on X, the Bitcoin investor and commentator argued that the sector’s long tail of unused chains, illiquid tokens and speculative projects is being cleared out as the parts with real utility merge into the broader financial system.

Pompliano said the reaction to his initial post on X was immediate and hostile. He had written that “most of the crypto industry is dead and it’s never coming back,” a message he said followed him through the Consensus conference in Miami.

“I have been called an idiot, I’ve been told I was wrong, and I must have been asked over 50 times about the tweet while I was at the Consensus Crypto Conference yesterday down in Miami,” Pompliano said. “But after spending the day at the conference, I’m more convinced today than I was yesterday. Most of the crypto industry is dead and it is never coming back.”

Crypto Ghost Chains And Zombie Coins

Pompliano’s core argument rests on what he sees as a broken business cycle inside crypto. In traditional industries, failed companies are shut down, capital is redeployed and talent moves toward stronger ideas. In crypto, he said, that clearing mechanism rarely works because blockchains can keep running with minimal participation and tokens can linger far above zero even after liquidity and relevance have evaporated.

He described the result as an ecosystem filled with “ghost chains” and “zombie coins.” Ghost chains are networks that remain technically operational but have little meaningful activity. Zombie coins are tokens whose communities or markets have collapsed, while remaining holders are often unable to exit without taking severe losses.

“There are millions of coins and there are thousands of blockchains,” Pompliano said. “Just those two things alone would make my original claim that most of the crypto industry is dead accurate. Because you have to ask yourself: does anyone actually believe that millions of crypto coins are going to thrive in the future?”

Pompliano said he asked that question from the stage at Consensus and “literally zero people raised their hand.”
Beyond unused networks and dead tokens, Pompliano argued that crypto has lost much of the ideological conviction that once defined its early base. The industry, in his view, has shifted from “hardcore missionaries” who prioritized the success of Bitcoin and the underlying technology toward “mercenaries” who chase whichever trade offers the largest financial reward.

Q&A

What did Anthony Pompliano say about the crypto industry?

Anthony Pompliano stated that most of the crypto industry is dead and will never recover, highlighting the presence of unused chains and illiquid tokens.

Why does Pompliano believe the crypto industry is dying?

Pompliano believes the crypto industry is dying due to a broken business cycle, where failed projects persist without proper market clearing.

What was the reaction to Pompliano's statements at the Consensus conference?

Pompliano faced immediate and hostile reactions to his statements, with many attendees questioning his views during the Consensus conference in Miami.

How does Pompliano view the future of the crypto market?

Pompliano sees the future of the crypto market as a consolidation of projects with real utility, merging into the broader financial system.