With over 19,000 cryptocurrencies, the cryptocurrency industry likens the market to the early days of the Internet. However, industry players have said that most of these coins will collapse.
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Some crypto industry players have told CNBC that the number of blockchains that exist will also decline over the next few years, while thousands of digital tokens could collapse.
There are over 19,000 cryptocurrencies and dozens of blockchain platforms. Blockchain platforms such as Ethereum are the underlying technologies on which many of these various cryptocurrencies are built.
Recent The collapse of the so-called algorithm stablecointerraUSD And the related digital token luna Shock wave through the marketSpotlights the thousands of cryptocurrencies that exist and whether they all survive.
“One of the implications of last week’s Terra issue is that we’re basically at the stage of having too many blockchains and too many tokens. This confuses users and is risky. Web3Foundation CEO Bertrand Perez told CNBC last week at the World Economic Forum in Davos, Switzerland.
“Like the beginning of the internet, you have a lot of dot-com companies, many of them are scams, do not bring value, everything is cleared. And now we are very useful. I have a legitimate company. “
Brad Garlinghouse, CEO of cross-border blockchain payment firm Ripple, said there is likely to be a “score” of cryptocurrencies that will remain in the future.
“I’m wondering if we need 19,000 new currencies today. In the world of fiat money, there are probably 180 currencies,” Garlinghouse said.
Comments from the industry come as the crypto market continues to feel pressure. Bitcoin is more than 50% off the record highs in November, and many other digital tokens are significantly lower than record highs.
Many different blockchain platforms, from Ethereum to Solana, are competing for industry leadership. However, Brett Harrison, CEO of Cryptocurrency Exchange FTXUS, said that not all of the hundreds that currently exist will survive.
“If you think about blockchain, you probably won’t have hundreds of different blockchains within a decade. I think there are a couple of clear winners for different types of applications,” Harrison said. rice field.
“And we’ll see the market … we’ll sort it out over time,” he added.