There are over 19,000 coins and tokens in the cryptocurrency market at the moment.
Brad Garlingus, CEO of blockchain company Ripple, believes that thousands of cryptocurrencies will collapse.
According to data obtained from Coinmarketcap, there are 19,719 cryptocurrencies at the moment. However, Garlinghouse doesn’t believe they will all live up to his test.
He mentioned it during a interview with CNBC At the recently concluded World Economic Forum in Davos. Garlinghouse said;
“One of the implications of what we saw last week with the Terra issue is that we are at a level where there are basically too many blockchains, too many tokens. And it’s confusing to users. And it’s confusing to users. Like in the beginning of the internet, you had a lot of dotcom companies and a lot of them were scams, and they weren’t bringing any value and whatever was cleared up. And now we have a lot of scams. There are useful and legitimate companies.”
The Ripple CEO said that he still believes that many cryptocurrencies will continue to exist in the years to come. he said;
“I think there is a question about whether we need 19,000 new currencies today. In the fiat world, there are probably 180 currencies.”
Although there are thousands of cryptocurrencies, the vast majority of them are built on some of the major blockchains, including Ethereum, BNB Chain, Cardano, and Solana.
Garlinghouse isn’t the only industry executive to feel this way about cryptocurrencies. Scott Minerd, chief investment officer of the Guggenheim, said that most cryptocurrencies are junk and will not survive in the end.
Brett Harrison, CEO of cryptocurrency exchange FTX US, said that not all of the hundreds of blockchains that currently exist will survive. he said;
“When you think about blockchain… there probably won’t be hundreds of different blockchains in 10 years, I think there will be some clear winners for a variety of applications. And we will see the market… Solve it.”
The crypto market has been in a bearish trend for the past few months, with prices falling by more than 50%.
