The cryptocurrency market is growing with more and more new assets

Although the cryptocurrency market is in trouble, developers continue to introduce new digital currencies. In total, there are nearly 20,000 cryptocurrencies on the market. New crypto projects continue to arrive from all over the world.

Developers take advantage of the lack of clear rules

Data on the evolution of the cryptocurrency market revealed that as of June 17, 2022, the number of cryptocurrencies introduced to the market was approaching a record high of 20,000. The total was exactly 19,911 cryptocurrencies. Other studies have found this 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 free fall.

The launch of new projects was encouraged by the significant growth of the cryptocurrency market in 2021, when digital assets such as bitcoin (BTC) reached an all-time high. In fact, if developers continue to bring new digital assets to market, it is because there is no clear metric that governs the launch of new crypto projects.

Furthermore, they are confident that the current downtrend in the market will soon fade. Not to mention, currently many investors are oblivious and tend to pour money into various crypto projects at the same time. Nevertheless, the market is full of bad actors who have created schemes simply with the intention of defrauding investors. For example, new tokens are created to mimic established cryptocurrencies such as bitcoin (BTC) and ether (ETH) for the sole purpose of attracting investors.

Measures are being studied to regulate the introduction of new cryptocurrencies

Currently, cryptocurrencies can be introduced without any control by any individual. However, entities like the SEC (Securities Exchange Commission) have implemented a rigorous process that any developer looking to launch a cryptocurrency must follow.

The authorities are already evaluating implement clear new rules which are likely to impact 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 some systems on the market has put a strain on the authorities. For example, there was the Terra (LUNA) crash whose founder, Do Kwon, was accused of alleged fraud.

According to some analysts, the situation could improve with the development of the sector. Indeed, most future digital assets will quickly be wiped out for lack of usefulness.

The collapse of the cryptocurrency market does not scare developers who continue to introduce new digital currencies. Today the sector has nearly 20,000 cryptocurrencies. The authorities intend to put clear measures in place to govern the introduction of new cryptocurrency projects, as many of them are launched with the aim of taking advantage of unsuspecting investors.

Source: Finbold

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