MoonPay President Warns Crypto Must Prove Value After 100+ Closures

Crypto is going through a major reality check. MoonPay President Keith Grossman recently shared a warning, pointing out that more than 100 crypto projects have shut down, filed for bankruptcy, or disappeared in 2026. He compared the current downturn to the dotcom crash, explaining that tough times are forcing builders to ask a hard question. Are they creating products people actually need, or just chasing hype?

Recent closures show that high transaction volumes do not always lead to sustainable businesses. For example, governance platform Tally announced its closure despite handling over $1 billion in payments. Everclear also shut down after reaching $500 million in monthly volume, while trading platforms like BitMart and BitMEX began winding down operations. Movement Labs also filed for bankruptcy, leaving its token down significantly from past highs.

Grossman noted that these failures do not mean blockchain technology is dead. Just like the internet survived the dotcom bust, crypto is simply shedding projects that lack a real business model. Simply launching a token or putting an asset on a blockchain is no longer enough to guarantee success. Projects now need to prove they make things meaningfully better for users as easy capital dries up.

Traders and investors should watch how remaining projects adapt to this strict environment. The focus has officially shifted from fundraising and attention to real utility and revenue. Teams that survive this shakeout will likely emerge stronger, while weak concepts continue to wash out of the market.