Over 100 Crypto Projects Shut Down in 2026 as Industry Faces Value Test
MoonPay President Grossman warns crypto must prove its real utility to survive.
1Dot-com-like crash
MoonPay President Keith Grossman revealed on August 10 that the crypto industry is experiencing a shakeout similar to the dot-com bubble burst. Reports indicate over 100 projects have shut down, filed for bankruptcy, or disappeared in 2026. Grossman states this situation forces crypto companies to confront a fundamental question: Are they developing products people genuinely need?
2A veteran's perspective
In a post on X, Grossman humorously called himself 'geriatric' by crypto standards. Having joined WIRED in 2002 right after the dot-com crash and taken his first leadership role during the 2008 financial crisis, he claims to have seen several cycles. 'Companies fail, people lose jobs, careers change, confidence gets shaken,' he wrote, emphasizing that tough environments may push individuals to reconsider their reasons for working in this space.
3Diverse shutdowns
This year, over 100 crypto initiatives have ceased operations or declared bankruptcy. The casualties include exchanges, wallets, DeFi projects, NFT marketplaces, and blockchain networks. Grossman compares this to the dot-com collapse, noting that the internet's failure to support thousands of businesses didn't mean the technology itself failed—it just showed being an internet company wasn't enough for sustainability.
4The core question
Grossman argues the key issue is no longer about launching tokens, creating new chains, raising large rounds, or generating buzz. 'It's simpler: Are you creating something people actually need?' he questions. The crypto industry now faces the challenge of answering this fundamental question to prove its value proposition.
5AI connection
Drawing from John D'Agostino's framework, Grossman links digital assets with AI, describing AI as 'scalable intelligence' and crypto as 'scalable truth.' He contends blockchains can reduce costs for establishing ownership, authenticity, and settlement. However, he cautions that simply putting an asset on blockchain doesn't automatically create value—the technology must meaningfully improve something for users.
6Usage ≠ revenue
Tally, a governance platform used by over 500 protocols, closed despite processing more than $1 billion in payments. Everclear also shut down after reaching $500 million in monthly transaction volume. Grossman suggests these cases demonstrate that usage alone doesn't guarantee sustainable revenue streams in the crypto space.
7Exchanges affected
As CryptoPotato reported last month, BitMart and BitMEX began winding down trading operations. BitMart's BMX token plunged over 60% following the announcement. Movement Labs filed for Chapter 11 bankruptcy on July 23, sending its MOVE token more than 99% below its previous all-time high—clear indicators of mounting pressure across the industry.
8The real test begins
Grossman clarifies these failures don't prove crypto itself has failed. Instead, they test whether individual projects have viable products, customers, and business models that can survive when easy capital disappears. 'Putting something on blockchain doesn't make it valuable. The technology has to earn its place. And so do we,' he concludes, marking a pivotal moment for the industry's maturation.
Original article: CryptoPotato — Kripto Sektöründe 100'den Fazla Proje 2026'da Kapanıyor