Bank of America (BOFA) through reports Global Research Project that around 99 percent of more than 26,000 crypto tokens currently circulating will disappear within the next 10 years.
The prediction was delivered in an analysis that highlighted the future of the digital asset industry amid the transformation of global financial infrastructure.
Reports distributed Krypto Smqke researcher That assesses that most tokens do not have a long -term utility and are only used for speculation or temporary experimental purposes. According to Bofa, only a small portion of crypto assets with strong fundamentals is expected to survive.
Tokenisasi is considered to be an important stage of the future of crypto assets
Bofa asserted that the current world financial system is still very dependent on centralized infrastructure that is outdated and minimal interoperability. This condition is considered to limit the efficiency, innovation and distribution of capital optimally.
Although the digitalization of assets has begun for a long time, such as Nasdaq’s move to switch to electronic trade in the 1970s, most financial institutions still use a system that is more than two decades.
The report estimates that major changes will occur in the next five to fifteen years in line with the increase Application of Tokenisasiboth in the financial and non-financial sectors.
Tokenisasi is defined as the process of making a digital version that can be programmed from real world assets (RWA), which can be traded and traced through blockchain technology or Distributed Ledger other.
BOFA compares the adoption of Tokenisasi with major technological developments such as radio and television, which requires a long time to be widely integrated.
This institution projects that both the public and private markets will turn to the Tokenisization framework to improve transaction efficiency and security.
The difference between the Crypto and Asset Tokens that
In his report, Bofa distinguishes between crypto tokens and traditional assets ditokenisation. Assets that are dociated do not always require crypto or public blockchain network.
Technology Distributed Ledger can be operated perisioned or private, allowing safe and regulated interactions between financial institutions without involving large amounts of intermediaries.
Meanwhile, crypto token is absolutely needed in the public blockchain ecosystem to provide incentives to those who validate transactions and maintain network integrity.
However, Bofa assesses that most of the token that exist today is not essential, does not provide real benefits and has the potential to disappear over time.
The prediction of the loss of 99 percent of this crypto asset reflects the view that the market will experience a large consolidation. Only projects with clear uses, real added value and strong regulatory support that will be able to survive.
While thousands of other tokens were born without the sustainability strategy at risk of disappearing along with technological developments and policy changes.
Bofa’s report also illustrates a broader trend among global financial institutions.
Many institutions have begun to utilize blockchain technology for efficiency and security, but are reluctant to be directly involved in high volatility and decentralized nature of the public crypto market. Adopted models tend to prioritize a closed permit system with strict supervision.
If the projection is proven, the digital asset industry will experience fundamental changes. The crypto market will focus on a few assets that are tested and have an important role in the financial ecosystem, while the majority of existing tokens will be part of the history of the development of blockchain technology. [st]
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