The cryptocurrency market has more than 19,000 coins and tokens at the moment.
Brad Garlingouse, the 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 all of them would stand the test of them.
He mentioned this during an interview with CNBC at the recently concluded World Economic Forum in Davos. Garlinghouse said;
“One of the effects of what we’ve seen last week with the Terra issue is we’re at the stage where basically there are far too many blockchains out there, too many tokens. And that’s confusing users. And that’s also bringing some risks for the users. Like at the beginning of the internet, you were having lots of dotcom companies and lots of them were scams, and were not bringing any value and all that got cleared. And now we have very useful and legit companies.”
The Ripple CEO stated that he still believes numerous cryptocurrencies will be around for years to come. He said;
“I think there’s a question about whether or not we need 19,000 new currencies today. In the fiat world, there’s maybe 180 currencies.”
Although there are thousands of cryptocurrencies, a large number of them are built on some of the leading blockchains including Ethereum, BNB Chain, Cardano and Solana.
Garlinghouse isn’t the only industry executive to feel such a way regarding cryptocurrencies. Guggenheim Chief Investment Officer Scott Minerd said most cryptocurrencies are junk and won’t survive in the end.
Brett Harrison, CEO of cryptocurrency exchange FTX U.S added that hundreds of blockchains currently in existence will not all survive. He said;
“When you think about the blockchains … there probably won’t be hundreds of different blockchains in 10 years, I think there’ll be a couple of clear winners for different kinds of applications. And we’ll see the market … sort that out over time.”
The crypto market has been in a bearish trend for the past few months, with prices down by more than 50%.
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