The cryptocurrency market will probably strengthen after the altcoins have failed now. This prediction comes from the former CEO and co-founder of Ethereum. According to Charles Hoskinson, we will see a consolidation after the crash.
Hoskinson now runs a blockchain research firm known as IOHK but was previously the main man behind Ethereum – the cryptocurrency that develops the technology for the digital currency named Ether (ethereum).
Over the past few weeks, we have seen big rise in a number of altcoins including Cardano, Ripple and others. What’s interesting is that Hoskinson oversaw Cardano while Ripple temporarily overtook Ethereum and became the second largest cryptocurrency in December 2017.
If these cryptocurrencies share anything, it is the blockchain technology – the one that underpins cryptocurrencies and records all transactions of a digital currency on a network instead of one centralized server.
The rise of digital tokens have also sent the total market cap of all virtual currencies up to three quarters of $1 trillion which has put it at its peak point. Hoskinson, however, raised concern about this situation, saying that there are a lot of ‘unrealistic’ cryptocurrencies coming out of nowhere.
As he said, “What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome. They will fracture up and you will see a lot of them are certain to fail.”
Hoskinson pointed that the main problem is that most of these cryptocurrencies have a lot of money – but lack realistic technologies that may aid industries in a way Ripple or Ethereum are.
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