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- The most disastrous year for cryptocurrencies in the market was 2018.
- 2014 had the greatest death rate for cryptocurrencies.
Hundreds of thousands of digital currency coins have been made available on the market ever since the first significant cryptocurrency surge in 2011. Additionally, although some cryptocurrencies did well, others stopped trading or became failed or abandoned ventures.
The Dead Coins over the Decade
The CoinKickoff examined data on more than 2,400 dead currencies from Coinspy, gathering information on each coin’s current situation and cross-referencing it with CoinMarketCap to confirm earlier market activity.
There were at least 2,383 cryptocurrencies that disappeared between 2013 and 2022, despite the fact that several well-known ones like Ethereum, Dogecoin, and Litecoin are still in use today.
1,584 or 66.5% of the failures of examined cryptocurrencies over the last ten years were attributed to abandoned coins with declining trading volume. Comparatively, 22% of currencies turned out to be scams, while 10% of ICOs never launched.
With 751 dead cryptocurrencies, 2018 saw the most yearly losses in the crypto industry compared to other years. Investors abandoned more than half of them, but 237 coins turned out to be frauds.
Reason for Dead Coin
- ICO Failure in 2017
When a business is big enough to trade on the stock exchange, it will conduct an initial public offering (IPO) to seek equity funding from the general public. An initial coin offering (ICO), in contrast, is a chance to generate interest in the introduction of a new cryptocurrency. Investors may get interested in the currency as a result of this.
In 2013, Mastercoin launched the first initial coin offering (ICO), and as public interest in cryptocurrencies increased along with price growth, the practice flourished in 2017. Despite this, data reveals that more than any other year in the previous ten years, 12.6% of all currencies released that year failed due to a failed ICO.
Due of the practice’s fraud vulnerability, there is now more stringent federal regulation. Data reveals that just five currencies have had unsuccessful ICOs as a consequence.
- Crypto Scams
Cryptocurrencies continue to be a top target for fraudulent schemes and opportunistic fraudsters due to the lack of regulation they face.
According to the Federal Trade Commission, over 46,000 consumers have fallen prey to cryptocurrency scams since the year 2021 began, losing a total of over $1 billion. Following the most recent price increases in 2021, renewed interest in the market has resulted in a $14 billion dollar increase in crypto crime.
2017 saw the market’s apex, when 17% of the currencies were fake. During the year’s ICO boom, fraudsters stole $490 million.
- Abandonment of Crypto Coins
Investors abandoned 63.1% of defunct cryptocurrency projects, which caused their values to fall. It is only inevitable that well-intentioned enterprises fail to generate interest in a market that is oversaturated with 12,000 different currencies.
The data demonstrates that the most abandoned currency was the result of the first crypto price spike in 2013. Since then, 61.1% of coins from 2013 and 69.5% of coins from 2014 have been ignored.
Due to a lack of investment, 16 coins were taken off the market as of 2020. Despite this, there are worries that the significant decline in cryptocurrency value in 2022 would result in more coin abandonments.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
