Thousands of Cryptocurrencies to Collapse, Crypto firms Predict
- Cryptocurrency industry players and experts have predicted the collapse of thousands of cryptos and blockchain platforms
- According to them, they will be like the early years of the internet when there were so many dot-com companies
- Others believe that cryptos like Bitcoin and Ethereum will weather the storm and survive as there are about 19,000 cryptos in the world
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Many cryptocurrency investors and industry players have predicted the imminent collapse of thousands of digital assets and said many existing blockchains will fall in the coming years.
CNBC reports that there are 19,000 digital currencies in existence and dozens of blockchain platforms. A blockchain platform is the bedrock technology upon which these cryptos are built.
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TerraUSD sparks fears of crypto implosion
The collapse of TerraUSD and its sister token, LUNA which reverberated through the market has beamed a spotlight on other cryptos and doubts have arisen if they will survive.
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Bertrand Perez, CEO of the Web3 Foundation stated that due to the collapse of TerraUSD, there are so many blockchains in existence and too many tokens. He said users are confused because of the preponderance of tokens and that is also bringing with it some risks, Perez said at Davos during the World Economic Forum.
Perez compared cryptos to the beginning of the internet when there were so many dot-com companies and many of them were scams and did not bring any value at all.
CEO of the blockchain, Ripple, Brad Garlinhouse said there are likely to be many cryptos that will survive in the future.
Doubts persist on the survival of unknown cryptos
According to Garlinghouse, there are doubts on whether the world needs as many as 19,000 cryptos while there are about 180 fiat currencies in circulation globally.
Chief Investment Officer at Guggenheim, Scott Minerd stated that most cryptos are junks but believe Bitcoin and ether will survive.
This is as the cryptocurrency industry continues to feel the pressure of a rebounded dollar and has lost about 50 per cent of its value after its November 2021 high.
There is a tussle for leadership between Ethereum and Solana in the industry, but analysts maintain that many cryptos currently in existence will wither off.
Trouble hits Luna investors as stablecoin drops to zero in value
It should be recalled Legit.ng reported that investors of Luna, the stablecoin that collapsed on Thursday, May 12, are crying as the value of the cryptocurrency equals nothing, trading at $0 on Friday, May 13, 2022.
Nigerian investors have bemoaned their luck as the value dropped to about N23 per LUNA, while it crashed on the international market.
As Bitcoin staged a comeback, surging above $30,000 irrespective of the ongoing troubles of stablecoins like TerraUSD that created panic in the market, investors of LUNA are in a hypertensive mood.
Source: Legit.ng
