The post Expert Highlights Key Red Flags in the Crypto Industry appeared on BitcoinEthereumNews.com.

The crypto market reached a historic milestone this week, with its total market capitalization nearing $4 trillion. This was driven by a rally that saw numerous digital assets hit all-time highs. Bitcoin, Ethereum, and several altcoins led the charge, buoyed by renewed investor enthusiasm and institutional adoption.  Amid this bullish surge, a prominent crypto market watcher and author has issued a sharp critique of the crypto industry. He has raised concerns about its integrity and long-term viability. Expert’s Crypto Critique: Industry’s Integrity and Long-Term Viability at Risk ​​In a detailed post published on X (formerly Twitter), Omid Malekan, an adjunct professor at Columbia Business School, publicly criticized the crypto industry, raising several concerns. His argument centered on three core points. First, he contended that many crypto projects are driven by team profit motives rather than a commitment to decentralized solutions and innovation.  Malekan highlighted a concerning trend in which projects, especially those that raise significant funds, often lose sight of their original vision. He explained that raising a huge sum of capital can ultimately become a distraction. This shifts the focus away from decentralization, a core value within the crypto ecosystem.  “Funds raised are negatively correlated with long-term success. The data is indisputable. Bitcoin raised no money, ETH raised a little (by modern standards), Punks were given away, etc, while there is a long tail of projects that raised hundreds of millions or even billions and achieved abos-Fing-lutely-nothing,” he said. Furthermore, Malekan pointed to the issue of conflict of interest, particularly when projects simultaneously raise funds through both tokens and equity.  He suggested that this dual approach to fundraising often leads to decisions that benefit insiders rather than the broader community. This, in turn, undermines trust and the project’s long-term potential. “The most likely motivation of a central player (founder,…

---

Filed under: News - @ July 25, 2025 10:33 am