The Proliferation of Tokens in the Cryptocurrency Industry: Will Project Mergers Increase?

Keep an eye on this space for the evolution of cryptocurrency through project mergers

Discover how the cryptocurrency industry, with over 2.4 million types of cryptocurrencies, might shift towards project mergers to enhance network strength and user base.

Entering a Phase of Project Consolidation in the Cryptocurrency Industry?

In recent years, the cryptocurrency industry has launched an incredibly large number of projects, with reports stating that there are currently over 2.4 million types of cryptocurrencies in existence. However, it is anticipated that the industry may see an increase in "token and project mergers" moving forward.

Alexandre Dreyfus, CEO of the cryptocurrency project Chiliz, which develops blockchain for sports and entertainment, is one of the individuals discussing the importance of project consolidation. In a post from November 2023, he talked about the significance of integrating projects.

Dreyfus points out that the abundance of tokens and projects dilutes individual liquidity and potential. He explains that creating a superchain by integrating different projects can bring benefits to the network, business, and vision as a whole.

As project mergers and acquisitions advance, the total number of networks will decrease. This is expected to strengthen each network's decentralization, robustness, and user base. Additionally, it is hoped that issuing new tokens to existing token holders can reduce the risk of token sales.

Cryptocurrency Project Integration Already Underway

Integration of cryptocurrency projects has already begun in some areas. In February of this year, the merger proposal between Finschia and Klaytn was approved, and in March, a plan was announced to consolidate FET, OCEAN, and AGIX into ASI tokens.

The integration of Finschia and Klaytn is being touted as the birth of "Asia's largest Web3 ecosystem," and if the integration of FET, OCEAN, and AGIX maintains the valuation of each token, "a top-ranked AI-related token in the cryptocurrency market cap rankings" could emerge.

Although the movement towards project mergers has only started recently, considering the current situation where projects with similar goals are proliferating and competing against each other, it is anticipated that the trend of absorption and mergers will expand. This makes it an area worth watching in the future.