Crypto Leaders Say Thousands of Cryptos Will Vanish Following The Crash

Shiba Inu Cryptocurrency - Ferhat Deniz Via Unsplash
Shiba Inu Cryptocurrency - Ferhat Deniz Via Unsplash

Several crypto industry leaders said that thousands of digital tokens could collapse while the number of blockchains in existence will also decline over the coming years.

As of this writing, there are over 19,000 cryptocurrencies with hundreds of blockchain platforms. Ethereum — a leading blockchain platform — is the underlying technology that many of these different cryptocurrencies are built upon.

The recent collapse of the so-called algorithmic stablecoin terraUSD and its associated digital sister token luna — which deepened the crypto market’s wounds — has raised questions about the lifetime of other cryptocurrencies.

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“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 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.”