The CEO of Ripple (XRP) Brad Garlinghouse had predicted in 2019 that 99% of all cryptocurrencies might soon go bust.
The cryptocurrency market is a volatile space with huge swings and is mostly not made for the faint-hearted. At one moment there could be a +100% gain and the next day it could all be wiped away. The market is highly speculative and sometimes the price movements can even run on thin air. In addition, thousands of new tokens sprung up like mushrooms in the last two years leaving investors spoilt for choice.
The truth is that majority of the cryptos circulating in the market have no real-world use-cases. Only a handful of cryptos boast of utility and solve problems existing in our society. On the surface, almost all tokens claim they’re ‘revolutionizing’ the sector but that’s only on paper. The reality is far from the truth and the tokens have no purpose to even exist in the first place.
Many tokens have literally disappeared even after receiving rave reviews and massive investments between 2013 to 2019. The development signals that not everything that glitters is gold in the crypto sphere.
Considering how the crypto market has now become a circus of tokens spinning their own wheel, Ripple CEO Brad Garlinghouse predicted that 99% of cryptos will probably fail.
”I think anytime there’s a new market, there are a lot of people who run into that market to show that they can solve a problem and deliver customer needs. I have said publicly before that 99% of crypto probably goes to zero,” he said in an interview with Bloomberg in 2019.
What Happens to the 1% Of Cryptos That Survive? Ripple CEO Explains
Thousands of tokens are currently trading in the indices just on hype and celebrity backing. The run might last as long as the hype remains but as time goes, everything fizzles out. That is when a particular token will eventually fade away and swallow investors’ money along with it.
Brad Garlinghouse explained that once the majority of cryptos are wiped off the market, the rest 1% that are focused on solving real-world problems will not only survive but thrive. He described that the 1% coins that survive will be “game-changing” and are poised to grow in the coming years.
At the time of publishing, Ripple was trading at $0.74 and is up +0.3% in the 24-hours day trade. XRP is on the downside for the last four months and is struggling to cross the $1 mark at present.