Coinopsy Dead Token Project Tracker Shares Astonishing ICO Stats: 264 Coins Went Extinct in 2018
The nature of business demands that failure is taken as part and parcel of the game. However, when the rate of failure represents more than 10 percent of an industry, those are red flags a bull could see from a mile away.
An online repository of cryptocurrencies that are no longer active, Coinopsy, has noted that 264 altcoins could not live to see the new year. Interestingly, more than half of the coins that failed to negotiate the bear market of late 2018 were projects green-lit in 2017 through an initial coin offering (ICO).
Coinopsy’s catalog terms these as dead coins, defining it as “a token or coin that has been abandoned, scammed, website dead, no nodes, wallet issues, no social updates, low volume or developers have walked away from the project.”
It is fascinating to see that some of these coins actually “died” a second time, coins such as Philosopher Stones had already failed in 2014. However, undoubtedly on the high of the bear run in 2017, the project was resurrected and made another ill-fated attempt.
A rather startling realization hits the reader when one looks at Coinopsy further. They have subdivided failed coins into four categories; namely, ICO, a joke, a scam, or an abandoned project. Of all the failed coins, a startling 144 were ICOs launched in2017. Undoubtedly at the time of crypto mania, many such projects were started without due diligence. These numbers stress the perils associated with doing business.
What Led To Their Downfall
While there were a fair few that ostensibly outright failed, there were many coins that had other factors influencing its future. 73 were abandoned projects of which 32 were completely forsaken by their developers. There were 55 coins accused of possible fraud of which 27 were alleged to be some sort of a scam.
On the one hand, it is distressing to see so many coins fail, on the other, this falls in line with most predictions being made for this new year. Most forecasts are expecting the closure of unsustainable and hastily put together projects to cause a resurgence in the market. How this year plays out is dependent on the responsible behavior of the industry in general.