Remember Usenet? Probably not, and that’s good for you. It was an ancient decentralized discussion system, initially designed for geeks, later on, taken over by mutual adoration societies, trolls, warez distributors, and spammers. Not sure if it is still working, most likely rotting away with other (nowadays) useless technologies. Why do I bring this example here? Well, the system evolved strangely. From a couple of dozens of Usenet newsgroups initially, it quickly grew to hundreds of thousands (literally!) at some point. Just like the coins on the crypto market. Only few Usenet groups were convenient, and the rest were dead and/or forgotten. That was because most of them were made for vanity or scam purposes. Once again, just like thousands of crypto coins.
Let’s continue this analogy. Usenet died not because of the plentifulness of newsgroups but instead of it. There were several causes, including the appearance and popularization of web forums, instant chats and communicators, and social media. Last but not least - the aforementioned stale technology of the whole system made it redundant. On the one hand, we may say, a bunch of constantly created but often worthless groups somehow attracted a lot of new users. However, it didn’t challenge the quality of reputable boards nor discourage their discussants, on the other. It seems like the situation in the crypto market at present.
Enough with Usenet, time to return to our muttons. For several more or less valid reasons, respected crypto influencers hate the abundance of altcoins. According to many prominent members of the community, if something isn’t or for a long time hasn’t been in the Coinmarketcap’s Top 100, it is probably a scam or niggling at least. Extreme blockchain activists do not even regard this Top 100, narrowing down the list to Top 10 or BTC (and eventually ETH) only in some cases.
Some believe that the more new altcoins are introduced, the better the market works. This phenomenon is widely known as competition. It generates rapid development in a number of fields. It really does! The economy is based on this currently unpopular thesis. But when it comes to crypto, it provides something much more important. Tons of possibilities and opportunities for almost everyone. The chance to start and fund a business, monetize and spread own product, service, idea, artwork, anything in that matter. The opportunity to be (potentially) an essential part of this system. And thus, it creates some kind of a sense of community. Thanks to the world of crypto coins, we can enjoy this, long time not seen on the internet phenomenon.
I don’t want to sound like a sentimental boomer or a naive teen. I don’t dismiss drawbacks. It should be evident for most people (but unfortunately it isn’t) that almost everything has disadvantages. The fact that there are so many altcoins has negative consequences as well. What are common dangers and setbacks? For instance, typical frauds like rug pulls or impostor scams. However, considering the pros and cons, the game still seems worth playing.
Count me in the list of people who openly express great sympathy to as many new altcoins as possible. I just think that in this particular area, the more the better rule works perfectly. So next time you see some crypto-celebrity making a nasty comment such as “so many trashy coins are circulating and we don’t need another one” or “why this crypto exchange allowed this coin - it is so below top 100”, you will know that his logic (probably) fails.