All Too Much
Tokens are now everywhere and it really feels like we are overloaded with them – it has done for a while. ICOs certainly hasn’t helped and are indeed making the matter a whole lot worse with daily applications for another ICO. Cryptocurrency exchanges are inundated with requests but it is getting to an unprecedented stage now and industry experts are actually wondering whether this current trend can actually keep on at the same rate. We all know the importance of ICOs but the level at which they are releasing tokens is now at breaking point.
Tokens, Tokens, Tokens
It is all getting a bit much for some currency exchanges too with a lot of tokens now sharing their tickers. When there are only three letters involved this is somewhat confusing for all concerned. Although some in the industry are showing signs of excitement that the three letter configurations must soon run out, there are now tokens with both four and five letter tickers. So the problem is only going to get worse. As it is, there have already been several cases where traders have purchased the incorrect token because of similarities in ticker or name. It is actually becoming near on impossible for even the best of traders to keep track of all of the tokens.
However, it is not the mere number of tokens that actually is the frustration, it is more to do with the type of tokens that are available. Traders do indeed welcome new tokens but only those that actually add something to the industry, which sadly only 10% of those released, do. The remaining 90% of the coins actually have very little value in the world and do very little for the cryptocurrency industry. In fact, the tokens are quite detrimental to exchanges draining time and money from the traders.
Where To Next?
Insiders have even suggested that one of the world’s biggest and most active cryptocurrency exchanges, Binance, is struggling with the number of tokens that are available now. There are currently 50 coins with less than 100 BTC listed on the exchange. This is in comparison with 10,000 BTC plus which can be seen for ETH or EOS.
To add to all of this, a channel whose purpose is to predict new listings have gone crazy with all of the new listings and many of their predictions have been incorrect recently. This is clearly as a result of the sheer volume of tokens that there are out there now. There is surely no way to make predictions anymore.
There isn’t any light at the end of the tunnel not in the near future anyhow, and with at least two large ICOs finishing their token sales every single day the number of tokens in the market is going to continue to explode. Coinmarketcap lists 1,644 tokens which is not an extensive list of the tokens in any way shape or form.
It will certainly be interesting to see how the Cryptocurrency industry will cope and whether the number of tokens available does actually plateau at any point. Hold onto your hats!