According to the insiders interviewed by CNBC, thousands of cryptocurrencies are facing collapse. It is preliminarily estimated that the false prosperity of more than 19000 cryptocurrencies will come to an abrupt end. As people withdraw funds to help solve the rising cost of living, some cryptocurrencies may face collapse.
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It is believed that bitcoin, Ethereum and other large cryptocurrencies will survive the crash, but even these currencies have fallen in value.
Although this news may worry the holders of various cryptocurrency currencies, this process may see the effective exit of garbage projects that have made no contribution to this field. Because of their distributed nature, a cryptocurrency itself is not easy to disappear, but these assets will become almost worthless.
Bertrand Perez, CEO of Web3 foundation, told CNBC in Davos, Switzerland:
"One of the impacts of the value collapse of [terrausd] we saw last week is that we are at a stage where too many blockchains operate there and too many tokens are generated accordingly. This makes users confused and brings some risks to users."
The possible liquidation process of cryptocurrency next year will be very interesting, because it will be the first time that these Internet data-based assets have experienced a major financial crisis since their establishment in the late 2000s.
