Coinopsy & Dead Coins ICO Graveyard List Contines to Climb Into the 1000s

Many ICOs Meet Their Unfortunate End, Declared Dead by Coinopsy

Cryptocurrencies are dying all over the world. While there are many platforms that are surviving and thriving, over 800 tokens are no longer able to function at the capacity that they strived for not long ago. Dead Coins maintains their estimate at 800 coins, though Coinopsy says the number is closer to 1,000.

Much of the credit for these dying tokens comes from the many startups that decided to place all their profit in a metaphorical ICO basket. They started with a major surge in funds, as their billions of dollars came rolling in with new consumers. However, not long after these ICOs started selling, they became victims of a global regulatory restriction that aimed to eliminate unsavory practices and potential scams.

Some say that the names of those ICOs were a fairly good sign that they were meant to go down, like CryptoMeth, Droplex, and Roulettecoin. Aaron Brown, who writes for Bloomberg Prophets, said in an email:

“There has obviously been a lot of fraud and hype in the ICO market. ,” Aaron Brown, a business author and investor who writes for Bloomberg Prophets, said in an email. “I accept figures I have seen that 80 percent of ICOs were frauds, and 10 percent lacked substance and failed shortly after raising money. Most of the remaining 10 percent will probably fail as well.”

Right now, less than 4% of all ICOs were successful or seem to have a future, despite raising approximately $50 million to $100 million. The majority of these sales raised funds without ever even creating a development team or an eventual product, giving only a whitepaper of a plan that ended up going awry.

Simply put, blockchain startups are not doing well. In 2013 and 2014, there were 103 companies that got initial funding towards their projects, and only 28% even accumulated anything after that. This is worse than ICOs from 2008 to 2010, of which 46% of the 1,098 companies were able to gain funds in their second round. However, the numbers still dwindled, with only two percent of companies gaining any more revenue by the fourth round.

The issue may not be with the currencies and platforms themselves, but with the theoretical missing piece. Arieh Levi, who works with CB Insights, offered his take.

“I don’t think we found the killer app yet. It just seems like there’s been a lot of projects tried, but there aren’t really many users of blockchain protocols beyond speculators and traders.”

When these projects fail, it ends up draining the investors of billions of dollars. The average loss, according to an estimate by the global director of fintech strategy at Autonomous Research LLP, was about $500 million. These losses could have easily been prevented with investment in coins that had more than a simple whitepaper to prove their validity, but hindsight is 20/20.

Since prices are dropping dramatically across the entire crypto atmosphere, that record of dead coins is growing exponentially. In fact, the frontrunner of the entire crypto industry that started everything, Bitcoin, has already dropped in value by 57%. Coinopsy’s Richler Vanierwitz commented on this concern in an email. “”We will see a lot more abandoned ICO that never make it to an exchange. ICO investment will become very unprofitable,” he said. However, even with this warning in mind, ICOs have been responsible for raising almost $12 billion in the market.

There is still hope for these coins to some degree. A recent partnership between Coin Janitor, a startup, and Dead Coins. Their mission is to help recycle the failed projects for investors for projects with a market cap of no more than $50,000. Regarding this venture, CoinJanitor CEO Mark Kenigsberg said,

“We take as many coins off the market as possible. Every time we absorb a project, we have more audience and more marketing reach. Instead of linear growth, we should hit some kind of hockey stick growth. All the tokens we get we destroy, we actually burn them. Turn off the entire blockchain.”

In order to save the currencies, CoinJanitor has developed their own. This is a common practice, to have a dead coin picked up by a developer. However, it is not a frequent occurrence, so consumers are more likely to see most of the vanquished coins remain buried.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide