Many of the 19,000 existing cryptocurrencies will disappear in the coming years, several industry experts told CNBC, comparing the market to the early days of dotcoms. According to Friday’s report, many blockchain platforms will also cease to exist.
Experts pointed to the recent collapse of the algorithmic stablecoin TerraUSD and its associated digital token, Luna.
“One of the effects of what we saw last week with the Terra problem is that we’re at the stage where basically there’s way too many blockchains, too many tokens. And that’s confusing users. And it also carries risks for users,” Bertrand Perez, CEO of the Web3 Foundation, told the media.
“Like in the early days of the internet, you had a lot of dotcom companies and a lot of them were scams, and didn’t add any value and it’s all been wiped out. And now we have some very useful and legitimate companies,” he said.
According to Brad Garlinghouse, CEO of blockchain cross-border payments company Ripple, there will likely only be simple “scoring” cryptocurrencies that remain in the future.
“I think there is a question of whether or not we need 19,000 new currencies today. In the fiat world, there are maybe 180 currencies,” said Garlinghouse.
Cryptos Crash Amid Recession Fears
Guggenheim Chief Investment Officer Scott Minerd Called Most Cryptocurrencies “waste,” noting that Bitcoin and Ethereum will survive.
The cryptocurrency market has been in turmoil lately. The leading digital coin, Bitcoin, is down more than 50% from its all-time high of over $68,000 in November, with many other digital tokens also down from their all-time highs. Analysts say one of the main reasons for the price drop could be a low appetite for risk among traders and investors amid the global crypto crackdown.
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