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Cryptocurrencies and tokens facing a prolonged bear market
- Monday | 11th February, 2019
By cutting the number of tokens, companies hope to make the currencies that remain in circulation rarer and more valuable. After the blockbuster success of ICOs in 2017, with funds raised at more than $6 billion, cryptocurrencies nosedived, wiping out about 85% of their total market value since hitting a peak of more than $800 billion in early 2018. For digital currencies still in the market, the prospect of incoming supply – some with a predetermined schedule – could pose a challenge to their businesses given the current downturn in the market. ZCash, a more than two-year-old digital currency with strong privacy features, has 28.05% of its total supply issued so far, according to Messari data. Companies need their investors to use their tokens to grow their platform and network, but their currencies have become pure speculative investments.
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