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There are greater than 19,000 cryptocurrencies in existence and dozens of blockchain platforms that exist. A blockchain platform, reminiscent of Ethereum, is the underlying expertise that many of these totally different cryptocurrencies are constructed upon.
The current collapse of so-called algorithmic stabelcoin terraUSD and its related digital token luna, which despatched shockwaves through the market, has thrust a highlight on the thousands of cryptocurrencies in existence and whether or not they will all survive.
“One of the results of what we have seen final week with the Terra situation is we’re on the stage the place principally there are far too many blockchains on the market, too many tokens. And that is complicated customers. And that is additionally bringing some dangers for the customers,” Bertrand Perez, CEO of the Web3 Foundation, instructed CNBC on the World Economic Forum in Davos, Switzerland, final week.
“Like at first of the web, you have been having heaps of dotcom firms and much of them have been scams, and weren’t bringing any worth and all that obtained cleared. And now now we have very helpful and legit firms.”
Brad Garlinghouse, CEO of cross-border blockchain funds firm Ripple, mentioned there’s possible to be “scores” of cryptocurrencies that stay sooner or later.
“I believe there is a query about whether or not or not we want 19,000 new currencies at this time. In the fiat world, there’s possibly 180 currencies,” Garlinghouse mentioned.
The feedback from the trade come because the cryptocurrency market continues to really feel strain. Bitcoin is off greater than 50% from its report excessive it hit in November, with many different digital tokens sharply decrease from their all-time highs.
Many totally different blockchain platforms from Ethereum to Solana are vying for a management place within the trade. But Brett Harrison, CEO of cryptocurrency alternate FTX U.S., mentioned the a whole lot presently in existence will not all survive.
“And we’ll see the market … kind that out over time,” he added.