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Kronsteig was a member of the Nazi party during World War II. He served as one of Hitler's top scientists. Following the end of the war, he became a fugitive, fleeing from the War Crimes Commission.
Years later, aging and broken in body, he sought refuge in Latveria. He found employment under Victor von Doom. Working with Doom, Kronsteig developed a shrinking ray for Doom to use against the Fantastic Four. Upon completion of the task, Kronsteig became the first test subject, because Doom did not trust the former Nazi.
Kronsteig shrank out of existence, entering the Microverse. As Kronsteig came to its world Moto, his dreams and visions caught the attention of the Shaper of Worlds, who then remade that world into a version of Earth, where the Nazis were never defeated. Kronsteig became leader, or Fuhrer, of Moto, leading his Nazi forces in an onslaught on the USA.
The Hulk was sent into the Microverse and ended up on the Shaper's world as well. The Hulk was seeking to find the world of Jarella, and reasoned that if he would stop the war, he would get the Shaper's attention and force him to send him to Jarella. The Hulk fought against the Nazis in the USA and soon began to turn back their invading forces.
The Shaper granted Kronsteig superhuman power that he might overcome the Hulk. As Captain Axis, Kronsteig attacked the Hulk, but found that even the power he had imagined Nazi genetic surgery providing was unable to stop the Hulk. Frustrated with his struggle, Captain Axis stated that not in his wildest dreams could he have imagined his powers being put to such a challenge. Since he could not dream of it, the Shaper could not make it a reality. Axis shrunk back to the frail form of Kronsteig, and the alien world reverted back to its true form.
The Shaper sent the Hulk to the place of his dreams, K'ai, where he was reunited with Jarella. The Shaper then departed to find his own dreams, leaving the powerless Kronsteig on the alien world.
The Shaper had used up all of the dreams of the aliens, and exhausted them to the point that they no longer even had any dreams of there own.