Brad Garlingouse, the CEO of blockchain company Ripple, believes that thousands of cryptocurrencies will collapse.
Garlingouse said that there are currently over 19,000 cryptocurrencies in existence, but only a handful will survive. He predicts that those few survivors will be the ones that are able to solve real-world problems and provide value to consumers.
Garlinghouse made the comments during an interview with CNBC at the recently concluded World Economic Forum in Davos. He said;
“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 dot-com 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.”
“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.”
Brad Garlingouse
The Ripple CEO stated that he still believes numerous cryptocurrencies will be around for years to come. He said;
“I think there’s a question about whether or not we need 19,000 new currencies today. In the fiat world, there are maybe 180 currencies.”
Robust balance sheet
Despite the current state of the cryptocurrency market, Ripple CEO Brad Garlinghouse said that the San Francisco-based payments business would investigate the possibility of acquiring new cryptocurrency projects in the near future.
Crypto winter is a period of time similar to this one in which the prices of cryptocurrencies dropped and remained low, and the majority of the industry’s innovation came to a standstill.
Garlinghouse claims that it has an “extremely robust balance sheet” and that it is now at a stage in its evolution when it is more likely to be a buyer than a seller.
Mergers, acquisitions, and IPO
The chief executive officer is of the opinion that the cryptocurrency sector will see an increase in the frequency of mergers and acquisitions.
He said, “I believe the blockchain and crypto market will see an increase in [mergers and acquisitions]. That has yet to be seen. But I believe that will happen in the future. And I’m sure we’ll think about stuff like that as the situation develops.”
According to Garlinghouse, Ripple also plans to explore doing an initial public offering (IPO) if its ongoing litigation with the United States Securities and Exchange Commission is settled (SEC).
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