Thousands of cryptocurrencies will fail; Brad Garlinghouse

The cryptocurrency market has more than 19,000 coins and tokens at the moment.

Thousands of cryptocurrencies will come to a conclusion, according to Ripple’s CEO, Brad Garlinghouse. According to data gathered from Coinmarketcap, there are 19,719 cryptocurrencies in existence today. Garlinghouse, on the other hand, thinks not all of them will live through the test of time.R

“I think it is highly unlikely that every one of those will be successful,” Ripple’s CEO told CNBC on February 5. During the conversation, Garlinghouse also said that. “It would not surprise me if there are a hundred thousand dead projects by the end of 2022.”

He mentions this during an interview with CNBC at the recently concluded World Economic Forum in Davos. Garlinghouse says;

“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. 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.”

The Ripple CEO states that he still believes numerous cryptocurrencies will be around for years to come. He says;

“I think there’s a question about whether or not we need 19,000 new currencies today. In the fiat world, there’s maybe 180 currencies.”

There are thousands of cryptocurrencies, but the majority of them are based on well-known blockchains such as Ethereum, Binance Chain, Cardano, and Solana.

Ripple is one of the most popular and largest cryptocurrency companies by market capitalization.

The company has a long list of partnerships with some of the world’s leading companies including American Express, MoneyGram, Santander and PNC Bank.

The Ripple CEO has always been vocal about his thoughts on the cryptocurrency industry. He had earlier said that Ripple is “on the wrong side of history” if it doesn’t embrace crypto.

In an interview with CNBC, Ripple CEO Brad Garlinghouse said that the majority of cryptocurrencies will fail. He said, “I think it’s highly unlikely that we need 19,000 new currencies today.

Garlinghouse isn’t the only industry executive to feel such a way regarding cryptocurrencies. Guggenheim Chief Investment Officer Scott Minerd says most cryptocurrencies are junk and won’t survive in the end.

“I think probably 90% of these cryptocurrencies are going to go to zero. But there will be 10% that will survive and thrive. And those are the ones that have some type of backing or utility,” says Minerd.

Minerd isn’t alone in his estimate either as Wall Street legend Warren Buffett

Brett Harrison, CEO of cryptocurrency exchange FTX U.S adds that hundreds of blockchains currently in existence will not all survive. He says;

“When you think about the blockchains … there probably won’t be hundreds of different blockchains in 10 years, I think there’ll be a couple of clear winners for different kinds of applications. And we’ll see the market … sort that out over time.”

The crypto market has been in a bearish trend for the past few months, with prices down by more than 50%.

Even Ripple’s XRP, the third-largest cryptocurrency by market capitalization, is down by more than 70% from its all-time high in January 2018.

With the current bear market conditions and the increasing number of failed ICOs. It is not surprising that many industry experts predict that a large number of cryptocurrencies will fail in the coming years.

However, only time will tell which digital assets will survive and thrive in the long run.

What do you think about the crypto industry consolidation? Let us know your thoughts in the comments below!