On March 26, 2025, Chris Solarz, Chief Investment Officer at Amitis Capital, issued a bold statement: 99% of crypto tokens are heading toward a value of zero. According to CoinDesk, this fund manager prediction from an experienced investor has ignited discussions about the blockchain industry’s future. Currently, with around 40 million tokens in circulation, Solarz’s view is grim for most digital assets. Nevertheless, he believes hedge funds are entering a “golden age” for crypto investing despite the looming collapse.
A Young Crypto Market Fueled by Classic Tactics
Solarz, who oversees a crypto-focused fund of funds, highlights the benefits of the market’s immaturity. For instance, while traditional finance boasts 10,000 hedge funds managing $5 trillion, the crypto space has only 1,650 funds handling $88 billion. Because of this, competition remains low, allowing managers to dust off trading strategies sidelined in saturated traditional markets. Moreover, crypto’s volatility and inefficiencies offer “asymmetric opportunities” rare in mature sectors. However, this advantage doesn’t save the tokens themselves from Solarz’s harsh critique.
The core of the Chris Solarz crypto thesis is simple yet brutal: most tokens lack staying power. “I meet 20 managers… 19 out of 20 shouldn’t be managing money,” he told CoinDesk, pointing to the flood of inexperienced players. In his view, only about 100 tokens deserve serious consideration, while the rest are set for a crypto tokens crash due to weak fundamentals and oversupply.
Token Unlocks Threaten Crypto Stability
A major factor in this gloomy cryptocurrency market outlook is the wave of token unlocks planned over the next three years. Specifically, Solarz forecasts that these unlocks will swamp the top 100 tokens with excess supply, demanding $300 billion to maintain current prices. Meanwhile, the liquid token market for hedge funds sits at just $30 billion, and retail traders are distracted by memecoins. As a result, he warns, “There can’t be an altcoin bull market anytime soon.” Historically, venture capital has outpaced liquid funds fivefold in crypto, hiding losses with illiquid valuations—a trap Amitis Capital sidesteps by sticking to liquid strategies.
A Golden Era for Crypto Hedge Funds
Despite the dire token forecast, Solarz spots opportunity for hedge funds. He compares today’s crypto market to the 1990s TradFi scene, when 127 funds managed $39 billion with ample room to shine. Similarly, today’s crypto hedge funds can capitalize on inefficiencies absent in overcrowded traditional markets. For example, Amitis spreads investments across venture funds, liquid directional plays, and market-neutral approaches, emphasizing discipline over hype. Consequently, Solarz argues skilled managers will prosper even as most tokens crumble.
Crypto’s Future: Integration or Collapse?
Looking ahead, Solarz sees crypto fully merging with mainstream finance, much like the internet after the dot-com bust. He predicts Bitcoin might match gold’s market cap in a decade, though altcoins face tougher odds. The projected 99% failure rate mirrors the dot-com crash, where most startups faded, yet giants like Amazon emerged stronger. For now, the impending crypto tokens crash signals a purge of speculative fluff, leaving only robust projects standing.
Conclusion
Chris Solarz’s fund manager prediction—that 99% of crypto tokens will plummet to zero—darkens the market’s 2025 optimism. While hedge funds seize a budding sector’s potential, the vast majority of tokens teeter on the edge of oblivion, dragged down by unlocks and frail demand. Therefore, investors must tread carefully: in this cryptocurrency market outlook, reward and ruin are closely intertwined.
