After LUNA’s demise, only tokens may survive, experts say

With the current massive drop, investors are concerned about the future of cryptocurrencies. Several industry experts recently spoke with CNBC media to explain the cryptocurrency market’s outlook.

Most market experts believe that many of the current 19,000 cryptocurrencies and dozens of blockchain platforms will be phased out over the next few years.

While Guggenheim’s Chief Investment Officer, Scott Minerd, admitted that most cryptocurrencies are garbage, he predicted that Bitcoin and Ethereum would survive.

According to Brad Garlinghouse, CEO of cross-border blockchain payments company Ripple, there will likely be only “scores” of cryptos left in the future. “I believe there is some debate about whether we need 19,000 new currencies today.” “There are probably 180 currencies in the fiat world,” the executive said.

Bertrand Perez, CEO of the Web3 Foundation, stated that the recent price drop indicated a major drawback to the market. The demise of TerraUSD, a “stablecoin,” and its associated digital token, Luna, reignited debate over whether the thousands of cryptocurrencies in existence 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,”Perez explained.

Perez went on to compare the crypto market to the early days of the dot-com bubble, implying that many cryptocurrencies will fail during bear markets. The dot-com bubble was a rapid increase in US technology stock equity valuations in the late 1990s, fueled by investments in Internet-based firms.

During the dot-com bubble, which lasted from 1995 to 2000, the value of equity markets skyrocketed. However, after the bubble burst in 2001, equities entered a bear market. Several internet companies (including Cisco, Intel, Oracle, and many others) went bankrupt as a result of the bubble.

“Like at the beginning of the internet, there were many dot-com companies, many of which were scams and brought no value, and all of that was cleared.” And now we have very useful and legitimate businesses,” Perez said.

Important Trends

Cryptocurrency has grown rapidly in the last two years, but its future in 2022 and beyond remains uncertain.

The year 2021′ was a watershed moment for the industry, with tremendous focus and attention paid to the sector.

The industry is still in its infancy and is constantly changing. That is why Bitcoin so quickly rises and then falls precipitously.

According to market analysts, one of the major reasons for the price drop could be a low-risk appetite among traders and investors in the midst of the global crypto crackdown.

The technical analysis demonstrates the market’s viability and explains why institutional investors are interested in crypto as a potential platform. Due to institutional investors’ increased acceptance of Bitcoin, cryptocurrencies have already become an acceptable form of payment in a variety of fields.

Banks (including Bank of America, JPMorgan Chase, and Goldman Sachs), eCommerce platforms, and luxury brands (including Gucci) now accept Bitcoin. Bitcoin payments are accepted on the platforms of companies such as PayPal, Square, and PayPal. Tesla owns billions of dollars in cryptocurrencies, and interest from others is growing. Customers today are becoming more interested in cryptocurrencies.

Despite widespread interest, one major challenge is the lack of cryptographic security. In August of last year, hackers stole more than R9.2 million from the blockchain-based Poly Network platform.

The industry is still plagued by a lack of adequate crypto security. To address this issue, market participants are attempting to innovate and stabilize.

Another thing that the industry requires is regulation. It will boost investor confidence and put more pressure on market participants to ensure that proper systems are in place.

After LUNA’s demise, only tokens may survive, experts say

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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