Cryptocurrencies: Over 1000 Projects Are Dead
It’s very easy to get carried away by all the hype and positive talks going on in the crypto space. But once in a while, it is also necessary to look back at where we are coming from. A recent report by news outlet, TechCrunch revealed that over 1000 crypto projects were dead or as good as dead, as of 30th June, 2018. TechCrunch has based their claim on data from DeadCoins, and Coinopsy.
DeadCoins for example provides a list of cryptocurrencies that are no longer active. The have a list of 830 dead cryptocurrencies, and among them is the very recent initial coin offering (ICO) of Titanium Blockchain Infrastructure Services. The ICO was shut down on the grounds of fraudulent practices by the U.S. Securities and Exchange Commission (SEC).
The SEC’s press release noted that Titanium raised $21 from investors in the U.S. and other countries. They went further to warn investors on the risks involved in crypto investments: “Having filed multiple cases involving allegedly fraudulent ICOs, we again encourage investors to be especially cautious when considering these as investments.”
Coinopsy on the other hand offers daily reviews of cryptos, including those that couldn’t stand the test of time. They define a dead crypto as one that has one or more of the following characteristics: “abandoned, scammed, website dead, no nodes, wallet issues, no social updates, low volume or developers have walked away from the project.”
Going by their list, there are about 250 “dead” coins in the crypto space. And this includes the then popular, yet notorious Bitconnect, which was shut down in January, 2018. The website has been described as the “most successful ponzi-scheme in crypto so far.”
This reveals how volatile and loosely regulated the crypto space is. I remember when Bitconnect was still on and how virtually every crypto YouTuber hyped the site and claimed it was different. I was almost compelled to invest in it. But then, like a shocker, it went down the drain. My point exactly is that you need to look beyond the hype as a crypto investor; what problem are they trying to solve, who is behind the project, what is the adoption like? These are pertinent questions you need to ask.
Finally, a brief look at some stats to end this article. As at the time of writing this, ICOs have raised over $13.5 billion in only 2018. This is twice as much as what they did in the whole of 2017. Does this ring any warning bells? Sadly, TechCrunch revealed that scam and dead ICOs account for about $1 billion in 2017. So ensure you perform your due diligence before investing.