Enough is enough!

More than 11 million crypto tokens: how do you choose the right one?

The explosion of crypto tokens has reached a new peak: there are now over 11 million tokens. For comparison, in 2018 there were only a few thousand, and in 2014 just a few hundred. Creating a new token has never been easier, but this has also led to a highly oversaturated market.

We are now clearly in a phase of over-tokenization. New tokens are launched daily, but most add little to no value. This makes investing in crypto very different from previous cycles. Whereas before you could ride the wave of overall market growth, today it’s far more important to pick the right tokens. Only a small percentage will survive and provide real value.

We are likely on the verge of a major consolidation, similar to the mobile app boom of 2008-2010. Back then, millions of mobile apps were launched, but only a handful remained truly relevant. A similar shakeout seems inevitable in crypto.

Fed rules out a digital dollar

Fed Chairman Jerome Powell has made it clear: there will be no digital dollar under his leadership. The U.S. central bank sees no need to develop its own Central Bank Digital Currency (CBDC) at this time. Instead, the U.S. is leaving the digital dollar to the market.

This stands out because nearly all major economies are moving forward with their own digital currency. China has had the digital yuan since 2021 and continues to expand its use, while Hong Kong recently launched a government-backed stablecoin. Meanwhile, the ECB announced two weeks ago that it is accelerating the development of the digital euro, partly in response to Trump’s pro-crypto stance.

While other countries opt for a state-controlled digital currency, the U.S. is taking a different path. Instead of launching a CBDC, the government is backing private stablecoins like USDC and USDT to maintain the dollar’s global dominance. The Fed is letting the market drive innovation, while other central banks seek to maintain direct control over digital money.

24 U.S. states propose Bitcoin reserves

Political support for Bitcoin as a strategic reserve asset is growing in the U.S. So far, 24 states have introduced proposals to add Bitcoin to their state reserves. While these plans have not yet been formalized, they show that more states are recognizing Bitcoin’s potential as a store of value.

At the federal level, the issue is still under review. The Presidential Crypto Committee is debating whether the U.S. should build a strategic reserve with a mix of U.S.-based crypto tokens or opt for a Bitcoin-only reserve. But while Washington weighs its options, many states have already made their stance clear.

Whether these proposals will be enacted remains to be seen. But one thing is certain: the debate over Bitcoin as a strategic reserve is no longer hypothetical – it’s a real political issue.