Ripple Labs — the crypto-centric fintech company that was recently
valued at $10 billion — recently released the latest episode of their company
show, “The Ripple Drop,” in which the host asked company executives and
employees about their industry-related predictions for 2020. Chief executive of
the rapidly growing firm, Brad Garlinghouse, stopped by, giving his thoughts on
what 2020 will be like for this budding industry.
Garlinghouse remarked that he
thinks that 2020 will be a year of consolidation for the industry, despite 2018
being the bear market: “I think you’re getting to still see consolidation. The world doesn’t need 3000+
cryptocurrencies out there, and that i think the utility will corroborate that there'll be a migration to quality if you'll .” While he didn’t give any specific projects he believes are
currently unviable (notably, he is a fan of Bitcoin), the chief executive did
assert that there is likely to be a massive culling in the cryptocurrency
rankings, elaborating in the Youtube show: “And I think you’ll see
consolidation, where there’ll be fewer than 3,000 needless to say .
We can argue how low that number
can go. I’ve said publically that i assumed 99% would get away .” He opined in previous interviews that he thinks that only
a small portion of crypto projects currently have a viable product/use case
that can work at a large scale, meaning that the digital assets backing these
ecosystems are likely to be the only ones that will survive.
From a market perspective, this
makes sense. The Block’s Larry Cermak recently noted that according to
CoinPaprika data, “95% of cryptocurrencies currently have no liquidity and
another 2% very little liquidity… There are currently 351 cryptocurrencies that
have less than $10k of combined orders; 94.6% of all cryptocurrencies are
currently illiquid.”
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