3,000 coins – and the number is increasing. Is the ongoing craze for altcoin destroying the crypto industry?

The number of new old and stablecoins offered to the public continues to increase. This is despite the fact that the initial coin offerings (ICOs) with which the Altcoin craze began have largely failed.

Sorry, but, what is this garbage? pic.twitter.com/QSx6aTXAGq

— snipe(); (@0xSnipe) January 18, 2020

At the beginning of 2020, a large number of new coins came onto the market, often with special functions. Many of these new altcoins are designed for specific use within platforms or games. Still, attention to these coins shows what’s going wrong with the industry.

What went wrong?

The crypto industry was launched over a decade ago with the introduction of Bitcoin. Bitcoin opened new doors for finance as a protocol to enable digital transactions with an independent currency.

But Bitcoin was just the beginning. As the power of blockchain technology became more and more apparent, people began to copy the original. Charlie Lee was the first to create an altcoin in 2011 with his “silver” Litecoin (LTC).

In 2015, when Vitalik Buterin launched Ethereum (ETH), there were already 20 “imitations” – including XRP, NEO and others. However, many of these first coins have long since disappeared as interest has waned.

Nevertheless, the number of altcoins continues to explode. Already tracking the total number is extremely demanding. There are well over 3,000 active people – many of whom are fraudsters.

Did Altcoins Destroy Industry?

Many see the increase in these coins as a sign that the entire industry is broken – including Bitcoin. They argue that cryptocurrencies are built on misconceptions – and that the industry will eventually collapse.

Others argue that this kind of “wild west” market for coins is healthy. The growth of the altcoins, it is argued, shows a general interest in cryptocurrencies that is good for the market.

The so-called “Bitcoin maximalists”, on the other hand, believe that all of these altcoins will ultimately die and only Bitcoin will remain.

These perspectives may not be mutually exclusive. The fact that Bitcoin is the first blockchain coin undoubtedly keeps it at the forefront of the industry. However, that doesn’t mean that all other coins are fraudulent. 

Rather, development is often associated with errors – as in other industries. Real projects, however, will last.