What’s happening in the world of cryptocurrency, and what could come next? An expert breaks it down for new investors
- AAX senior executive Toya Zhang forecasts that in the next 3 years, M&A activity will result in a smaller selection of cryptocurrencies
- She advises newcomers to get familiar with the cryptocurrency space and its applications before jumping in with an investment
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It’s not easy to predict the future of cryptocurrency, considering its rapid evolution and constant price shifts. But one crypto-exchange senior executive in Hong Kong foresees today’s vast range of offerings – from pioneering leader bitcoin to alternative cryptocurrencies, or altcoins, such as ethereum – shrinking even as the sector’s total market capitalisation continues to climb dramatically.
How could that be possible? Toya Zhang, deputy chief operating officer of AAX, explains that merger and acquisitions activity could lead to consolidation across thousands of cryptocurrencies, as well as related businesses and apps, following a period of heady price gains for bitcoin and other blockchain-based currencies from late 2020.
“There are thousands of applications, thousands of types of tokens in the market,” she says. “A lot of them actually are doing similar things … so good projects will merge with the smaller ones, or the less-developed ones. There will be less choice for the users in terms of which token or which projects to use.”
To help newcomers navigate the cryptocurrency space, Zhang shares her insights on the current state of the sector, her outlook on how it could transform in the next three years, and advice on how to get started with investing.