Crypto firms say thousands of digital currencies will collapse, compare market to early dotcom days

Several cryptocurrency industry players have told CNBC that thousands of digital tokens are likely to collapse while the number of blockchains in existence will also fall over the coming years.

There are more than 19,000 cryptocurrencies in existence today and dozens of blockchain platforms that exist.

A blockchain platform, such as Ethereum, is the underlying technology that many of these different cryptocurrencies are built upon.

The recent collapse of so-called algorithmic stablecoin terraUSD and its associated digital token Luna, which sent shockwaves through the market, has thrust a spotlight on the thousands of cryptocurrencies in existence and whether they will all survive.

“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,” Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland, last week.

 “Like at the beginning of the internet, you had lots of dot-com companies, and lots of them were scams, and they were not bringing any value, and all that got cleared.

And now we have very useful and legit companies. ” Brad Garlinghouse, CEO of cross-border blockchain payments company Ripple, said there are likely to be “scores” of cryptocurrencies that remain in the future.

This report’s information was first seen on CNBC; to read more, click this link.