Altcoin News: Chris Burniske: “Only 2.5% of Tokens Have Real Use”

March 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Placeholder venture company partner Chris Burniske expressed the opinion that a very small number of tokens — no more than 50 — has a use in real life.

As Burniske noted, at the moment the number of investment and other transactions using tokens has decreased significantly, and in their place come securities. According to a partner of a venture company, in the future, many investors may regret this.

“Just as people in 2017 regretted their 2014/2015/2016 decision to abandon bitcoin for blockchain, many people in 2021 will regret their 2018/2019/2020 decision to abandon tokens for equity,” he wrote.

Burniske shares the opinion of many analysts that the growing market of cryptocurrencies has attracted many new members to the industry. And if in 2015 they said that “blockchain is not Bitcoin”, now newbies consider that “securities cannot be tokens”.

The partner of the venture company noted that 95% of the tokens on the market simply “do not work”. However, despite this, investors need to look for those projects that carefully think through the strategy from the very beginning to the use of the token in real life.

According to Burniske’s assessment:

“Roughly, I’d say there are less than 50 tokens with real utility in existence, placing us at < 2.5% of the tokens listed on CoinMarketCap; but 50 still provides plenty of inspiration to study and learn from.”

Note that, according to CoinMarketCap, the volume of cryptocurrency trading on some days in February reached the level of May 2018, while the total capitalization of the ICO market extremely decreased last year, this year we stayed very stable on about $130 billion.

Author: Marko Vidrih