Although the cryptocurrency market is struggling, developers continue to introduce new digital currencies. In total, there are nearly 20,000 cryptocurrencies on the market. New crypto projects keep coming in from all over the world.
Developers take advantage of the lack of clear regulations
Data on the evolution of the cryptocurrency market revealed that as of June 17, 2022, the number of cryptocurrencies having been introduced into the market is approaching the record high of 20,000. The total was precisely 19,911 cryptocurrencies. Other studies have found that the number of new cryptocurrencies increased by 22%, or 3,674, this year. All of this is happening as the cryptocurrency industry appears to be in freefall.
New project launches were encouraged by the significant growth the crypto market experienced in 2021 when digital assets such as bitcoin (BTC) hit an all-time high. In reality, if developers keep introducing new digital assets into the market, it is because there is no clear metric that governs the launch of new crypto projects.
Moreover, they are confident that the current market downtrend will soon fade. Not to mention that currently, a lot of investors are unsuspecting and tend to pour money into various crypto projects at once. However, the market is full of bad actors who set up schemes simply with the intention of scamming investors. For example, new tokens are created to mimic established cryptocurrencies like bitcoin (BTC) and ether (ETH) for the sole purpose of attracting investors.
Measures are being considered to regulate the introduction of new cryptocurrencies
Currently, cryptocurrencies can be introduced without any control by any individual. However, entities such as the SEC (Securities Exchange Commission) have implemented a strict process that each developer wishing to launch a cryptocurrency must follow.
The authorities are already considering put in place clear new regulations which are likely to have an impact on emerging cryptocurrencies. Jurisdictions will enact new laws specifically to govern the launch of new projects in the cryptocurrency market.
It must be said that the recent collapse of certain systems on the market has greatly challenged the authorities. There was, for example, the crash of Terra (LUNA) whose founder, Do Kwon, was accused of alleged fraud.
According to some analysts, the situation could improve as the sector develops. Indeed, most future digital assets will quickly be wiped out for lack of utility.
The collapse of the cryptocurrency market hardly scares developers who continue to introduce new digital currencies. Today, the sector totals nearly 20,000 cryptocurrencies. The authorities intend to put in place clear measures to govern the introduction of new crypto projects, as many of them are launched with the aim of taking advantage of unsuspecting investors.
Source : finbold
Receive a summary of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!
Behind the generic signature “Redaction CT” are young journalists and authors with specific profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.
We would like to say thanks to the author of this article for this outstanding web content
The crypto market is growing with more and more new digital assets
Discover our social media profiles as well as other pages that are related to them.https://metfabtech.com/related-pages/