More than half of all digital currencies is a dead project

in #crypto6 years ago

According to the sites Coinopsy and Dead Coins, tracking information about cryptocurrencies, about 1000 cryptocurrency projects are dead, as for several months demonstrate the absence of any traces of development and any hints of activity.

Once extinguished the cryptocurrency hype, hundreds of cryptocurrency projects immediately showered. In the bulk of these are of course projects that were focused on a simple collection of money at the peak of the popularity of the cryptocurrency fever. However, among them there are also projects of 2013-2014 and ICO closed for a number of other reasons. But in General, the reason is one-now the market is dumping ballast. Unnecessary, useless and unpromising projects that were pumped with money for only one purpose — to earn on the further sale of the token at a higher price when the project grows. But the rise was nowhere because the project was not the goal, nor, especially, any technology. In General-the reasons why this or that project was on the sidelines — a lot, but now it is not so important. The very fact that this is happening is important.

And if you look at all this from this angle, it becomes clear why the regulators are so zealously trying to intervene. And even despite their constant checks on the legitimacy of tokens, novice investors continue to invest millions of dollars in projects without any prospects. Although many of them would be eliminated at the first stage of the basic analysis, such as CryptoMeth or OreoCoin — one name of these projects already says that it is not necessary to contact them.

Consider the most common causes leading to the early "death" of the project. In the first place, the number of closing projects, of course, is fraud. The project is opened with the aim to raise money and no further development is out of the question. As a rule, the creators of such projects disappear after the first round of ICO financing. The project site closes, and the code is thrown. There were even cases when it was reported about the death of the creators of the project. Well, what-there are no creators-there is no one to claim. Some developers try to manipulate the market using such schemes as"pumping and dumping". Well, if we talk about really honest projects, behind which there really was an idea and technology, but for some reason did not go-then the project could slide into the abyss because of the constant problems with the software and other situations caused by the unprofessional approach of developers.

According to a study by the Satis Group, fraudulent ICOS collected more than a billion dollars in 2017, with 271 of them plagiarized in White paper, used the identities of famous people who were given out for their employees, and other questionable activities.

According to an additional study, only 8% of tokens were able to get after the ICO on cryptocurrency exchanges with a good reputation.

Some may say that the startup market is not generally known for a high percentage of successful projects, but even here blockchain startups have this figure lower than the market average: According to the CB Insights report published in October 2017, only 28% of blockchain startups reach the second round of investment, while the traditional business has this figure of 46%.

Well, for the note, maybe someone will come in handy: there is a South African project CoinJanitor, which changes the tokens of abandoned projects with a market capitalization of less than $ 50,000 for its own and tries to fix problems with the code.

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More than half of all digital currencies are dead projects and about forty percent more of the projects will be dead within 10 years from today, leaving less than 10% survival rate.

Posted using Steeve, an AI-powered Steem interface

That's true :)

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