Travis Kling, Chief Investment Officer at Ikigai Asset Management, has diagnosed the cryptocurrency space with a concerning trend: “Pervasive Quiet Quitting.” This refers to the growing disillusionment and disengagement among long-time participants in the crypto world. Kling’s observations, shared on X, reveal a shift in attitude among crypto professionals. He sees a decrease in their engagement and a fading belief in crypto’s potential to solve real-world problems.
“What I’m seeing and hearing is that a meaningful swath of the crypto community is simply much less engaged than in prior years,” Kling writes. He attributes this to a collective realization that many crypto projects have failed to deliver on their promises of adoption and utility. Kling points out how previous cycles of optimism, fueled by developments like DeFi, NFTs, and Bitcoin’s growing adoption, have given way to a more sobering reality. He argues that the “curtain has been pulled back on how utterly pointless and ridiculously overvalued so much of all this is.”
Kling also notes that the number of new entrants in the current crypto cycle pales in comparison to previous cycles. “Crypto is NOT a preferred avenue for the best and brightest young minds in America,” he adds. He reflects on the damage inflicted on the crypto industry in 2022, which remains unresolved.
However, Kling acknowledges that many remain in the crypto space due to the perceived potential for high returns. He describes a common mindset: “I believe Bitcoin will outperform every other asset class every year for most years… Alongside that, I believe there will be select altcoins that will massively outperform BTC during those up years.” He criticizes the current crypto venture capital landscape, arguing that misaligned incentives allow venture capitalists to profit from projects with little real-world traction. He warns that this “Quiet Quitting” mentality could become contagious, potentially discouraging new talent from entering the industry.
While his analysis is undeniably bearish, Kling concludes with a cautiously optimistic outlook. He suggests that regulatory changes, potentially following a Trump victory in November, could lead to more sustainable token structures and value accrual mechanisms in the altcoin space.
The influence of Bitcoin as an institutional asset class is expected to be a key topic at Benzinga’s upcoming Future of Digital Assets event on November 19. It remains to be seen whether the crypto industry can overcome the pervasive quiet quitting and regain the enthusiasm it once had.
