Michael Kong, the CEO of Fantom Foundation, a highly scalable blockchain platform designed for DeFi, crypto dApps, and enterprise applications, spoke in an interview with Decrypt at Chainlink SmartCon 2022 that in the future there are only a few blockchains will survive.
Only Few Blockchain Will Survive In The Future
A total of over 20,000 blockchain projects are currently active on the market, all competing for market share and dominance.
As of now, Fantom is among the more well-known chains. FTM tokens (No. 67 by market cap) are down 93% since they peaked at $3.46 on October 28, 2021, and traders are currently trading for $0.22 each.
However, this has not deterred the CEO of Fantom Foundation’s optimism for the future despite the down market and glut of competition.
“Competition is good because it can get you a better result, better technology,” he said.
Adding since crypto users have become accustomed to using multiple blockchains, multiple chains are likely to survive.
“I think in the future, you might not have 20 or 30 different chains… but I think you’ll have a few chains out there, and I think they will get a large market share,” the CEO said.
“People use multiple different blockchains, that’s the case today, and I think that will continue to be the case into the future,” added him.
The Big Negative Now is The Uncertainty of Regulatory
His greatest concern moving forward is the alarming rhetoric used by regulators lately, saying “I think the big negative at the moment is the regulatory uncertainty.”
“I think that’s what’s scaring a lot of people [in the industry],” he said.
Kong cited the SEC’s claim that all Ethereum transactions fall under US jurisdiction and the CFTC’s recent suit against Ooki DAO and its founders.
“To me, the regulatory uncertainty about who’s supposed to regulate what, like the SEC and the CFTC publicly disputing with one another, is really what could damper innovation, and really cause people to think twice about blockchain technology and not want to get into any trouble,” said Kong.