Most Crypto Coins Are Going to Zero, Says Digital Currency Group CEO Barry Silbert

By February 7, 2018 Ripple
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If you’re a big believer in holding lesser-known cryptocurrencies, you’ll want to sit up and take notice. Barry Silbert, CEO of crypto holding company Digital Currency Group (DCG), surprised an audience full of crypto fans at Yahoo Finance’s “All Markets Summit: Crypto” event in New York on Wednesday. Aside from a handful of coins like Bitcoin, Ethereum Classic and Zcash, he said, “I think most of the others are going to zero.”

Silbert, 41, built a name for himself on Wall Street by founding Second Market, a platform where people traded illiquid assets like shares in private tech companies. In 2015, he sold Second Market to Nasdaq and founded Digital Currency Group, which has invested in red-hot startups like Coinbase and owns crypto news site Coindesk. Silbert was named to Forbes’ inaugural list of the richest people in cryptocurrencies, with an estimated crypto net worth of $400 to $500 million.

Why does he think so many cryptocurrencies will disappear? “Most of these tokens don’t have real utility,” he said Wednesday. “Most of them are not differentiated from others. In the long run, I think there’s only going to be one digital gold. I think there’s only going to be one privacy-focused token. I think there’s going to be one main smart-contract platform.” This is a long-term prediction, he emphasized. “It may take 20 years to get there.”

Silbert is still making bets on newer tokens, as illustrated by the assets DCG holds. In addition to Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum Classic and Zcash, DCG owns Blockstack, Civic, Colu, Decentraland, Filecoin, OpenANX and Unikoin Gold, according to its website.

At Tuesday’s event, DCG also announced that it’s launching a new investment product to give accredited investors exposure to cryptocurrencies, in the same way it does with its Bitcoin Investment Trust. DCG subsidiary Grayscale is starting a “Digital Large Cap Fund,” a passively-managed fund that will hold the top crypto-assets by market value, starting with Bitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin.

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