The cryptocurrency industry has been going through one of the most turbulent periods of its short existence. According to industry experts speaking to CNBC, while the major cryptocurrencies will remain, smaller platforms will fall by the wayside.
In fact, those experts think thousands of cryptocurrency platforms will die off as the industry balances itself amid falling prices.
There are currently over 19,000 cryptocurrencies available, and I bet you only know around a dozen. It is clear the market is not there to support so many platforms. That means it is almost certain that some will collapse as people take their funds and reinvest them in more secure cryptos.
Experts say the giants like Bitcoin and Ethereum will almost certainly be fine, but smaller platforms will be wiped out in an apocalyptic event in the crypto market. Larger currencies can withstand falling prices, but the smaller options are seeing their worth collapse and they will become obsolete.
Obsolete is more fitting than going out of existence. The nature of crypto as a distributed technology means it is hard for a currency to simply stop existing. Instead, they will just become worthless. This will help to clean up an increasingly cluttered market.
There’s no doubt the cull will remove plenty of junk crypto projects, but it will also take out legitimate platforms. Bertrand Perez, CEO of the Web3 Foundation, told CNBC he sees falling prices as something the industry must contend with and that there will be losers:
“One of the effects of what we’ve seen last week with the [TerraUSD] 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.”
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