There have been several blockchain projects in the crypto world, apparently, more than 80,00 that claim to use distributed ledger technology. But just 8% of all of them was able to succeed and keep working on it. Moreover, the average lifespan of them is just 1.22 years.
92% Blockchain Projects Can’t Succeed
According to the China Academy of Information and Communications Technology – also known as CAICT – 8% of over 80,000 blockchain project launched is still operating today. Moreover, blockchain projects tend to have an average lifespan of just 1.22 years.
With this lifespan, many ICOs are not even able to launch a product to the market or a functional beta, which shows how risky thee investments can be.
He Baohong, director of CAICT’s Cloud Computing and Big Data Research Institute, talked at the China International Big Data Industry Expo 2018. He said that the projects start from one day to the other but they finish in a very similar way.
Mr. He Baohong Explained:
“[These projects] came out very quickly, but die quickly as well. In this circumstance, governments globally are accelerating their efforts to establish unified standards in order to help blockchain projects to achieve real-life applications.”
He Baohong kept explaining that they have established verifiable blockchain programs in China, and over 200 different enterprises have expressed interest to join. The main intention is to help the blockchain industry to become more transparent and open for investors.
It is also important to mention that not all the projects that fail are fraudulent. The reality is that some of them are not able to compete with other better built projects or do not have the know-how.