Record-Breaking Token Creation In January Raises Concerns Over Altcoin Liquidity, Market Quality

The cryptocurrency landscape is experiencing an unprecedented surge in token creation, with January 2024 marking a new high of over 600,000 new tokens launched in a single month.

This record-breaking figure, highlighted by CoinGecko co-founder and COO Bobby Ong, is raising concerns about market saturation and the future of altcoin investment.

“At this rate, we’re heading towards 1 BILLION tokens in the next 5 years,” Ong warned in a social media post.

He noted that compared to the average of 50,000 tokens created per month in 2022, the sheer volume of new tokens is fundamentally changing the dynamics of the crypto market.

The surge in token creation can be attributed to factors such as the emergence of new token incubators like Pump.fun, which simplifies the token launch process.

According to Ong, the “friction …

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