Most Cryptocurrencies Could Collapse Without Real Fundamentals – Gary Gensler
Former SEC Chair Gary Gensler has cast a pessimistic outlook on the vast majority of cryptocurrencies, excluding Bitcoin, suggesting that many of them lack any real economic foundation and are driven almost entirely by hype.
In a recent appearance on CNBC’s Squawk Box, Gensler voiced concerns that the overwhelming majority of altcoins rely heavily on speculation rather than tangible value.
He argued that while financial assets typically balance sentiment with fundamentals, much of the crypto market is skewed almost entirely toward sentiment. According to him, this dynamic puts thousands of tokens at risk of eventual collapse.
Gensler singled out Bitcoin as a potential exception, citing its global interest and growing recognition. However, he compared the rest of the crypto landscape to an overcrowded market of sentiment-driven assets, implying most won’t endure long-term.
Drawing a parallel to the metals market, he pointed out that while there are several precious metals, only gold and silver have stood the test of time. In his view, it’s unlikely that the public will remain engaged with thousands of tokens that offer little beyond buzz.
His comments come amid growing calls for regulatory clarity and skepticism around the sustainability of many crypto projects. With the market flooded by tens of thousands of digital assets—ranging from experimental tech to outright meme coins—Gensler’s warning underscores the need for investors to exercise caution and assess whether a project has real-world use or is simply riding a wave of temporary enthusiasm.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is passionate about questions of meaning. He is a fluent German speaker as well as He has been in the crypto space for more than three years and has an eye for spotting emerging trends in the world of digital currencies. Whether providing in-depth analysis or reporting on all topics on a daily basis, his deep understanding and enthusiasm for what he does makes him a valuable addition to the team.
