A number of cryptocurrency business gamers have advised CNBC that hundreds of digital tokens are prone to collapse whereas the variety of blockchains in existence can even fall over the approaching years.

There are greater than 19,000 cryptocurrencies in existence and dozens of blockchain platforms that exist. A blockchain platform, akin to Ethereum, is the underlying know-how that many of those completely different cryptocurrencies are constructed upon.

The current collapse of so-called algorithmic stablecoin terraUSD and its related digital token luna, which despatched shockwaves by means of the market, has thrust a highlight on the hundreds of cryptocurrencies in existence and whether or not they’ll all survive.

“One of many results of what we have seen final week with the Terra difficulty is we’re on the stage the place principally there are far too many blockchains on the market, too many tokens. And that is complicated customers. And that is additionally bringing some dangers for the customers,” Bertrand Perez, CEO of the Web3 Basis, advised CNBC on the World Financial Discussion board in Davos, Switzerland, final week.

“Like at the start of the web, you have been having numerous dotcom corporations and many them have been scams, and weren’t bringing any worth and all that acquired cleared. And now we now have very helpful and legit corporations.”

Brad Garlinghouse, CEO of cross-border blockchain funds firm Ripple, mentioned there may be prone to be “scores” of cryptocurrencies that stay sooner or later.

“I believe there is a query about whether or not or not we want 19,000 new currencies immediately. Within the fiat world, there’s possibly 180 currencies,” Garlinghouse mentioned.

Guggenheim Chief Funding Officer Scott Minerd added additional pessimism final week when he mentioned that the majority crypto is “junk” however that bitcoin and ethereum would survive.

The feedback from the business come because the cryptocurrency market continues to really feel stress. Bitcoin is off greater than 50% from its file excessive it hit in November, with many different digital tokens sharply decrease from their all-time highs.

Many alternative blockchain platforms from Ethereum to Solana are vying for a management place within the business. However Brett Harrison, CEO of cryptocurrency change FTX U.S., mentioned the a whole lot presently in existence won’t all survive.

“When you consider the blockchains … there most likely will not be a whole lot of various blockchains in 10 years, I believe there will be a few clear winners for various sorts of functions,” Harrison mentioned.

“And we’ll see the market … type that out over time,” he added.

 Comply with CNBC Worldwide on Twitter and Fb.