934 Cryptocurrency Projects are Dead Amid Bear Market
Cryptocurrencies have a bad year in 2018. Bitcoin, the world’s largest crypto by market cap has dropped over 80 percent over the past 12 months from its all-time high of $20,000 in late 2017, and an increasing number of ICO tokens are going to zero, becoming zombie tokens.
Coinopsy and DeadCoins, two sites that are actively cataloging failed crypto projects, find over 1,000 projects have failed so far in 2018. The projects range from ICO scams to true abandonware, and include Bitconnect, the biggest and most well-known Ponzi scheme in cryptocurrency world this year.
According to Deadcoins, the most comprehensive data source recording cryptos forgotten by this world, there are now 934 coins that are dead. But in July, the site only recorded 800 tokens that are no longer able to function.
Another site, Coinopsy, has details on 483 coins which have joined the crypto graveyard.The site states that a dead coin means “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”.
Interestingly, Coinopsy classifies dead coins into four types: ICO Dead Coins, Joke Dead Coins,Scam Dead Coins and Abandoned Dead Coins.
As of today, there are 113 ICO dead coins, which refer to tokens, issued by ICO projects, end up dead before ‘getting an exchange listing or to the first birthday’ because they are manipulated as ‘pump-and-dump’ schemes. Joke dead coins come from a big joke with the intentions of not being the best or greatest currency, and the site lists 17 such tokens. What’s more, there are 40 scam and 313 abandoned dead coins which are discarded by a number of reasons.
How can a coin die? Coinopsy indicates if a token ranks below 1000 for over 3 months, trading volume is under $1000 for 3 months, website has no trace of updates, and has no nodes upsets, it can be defined as an “ Instant dead coin”.
The latest research from Wall Street Journal found that over 15 percent of cryptocurrency projects raising funds through ICO in 2017 and 2018 are “showing signs of plagiarism, identity theft and promises of improbable returns” after analyzing white papers of 3,300 projects. Thus, the significant number of crypto projects are doomed to fail, and those tokens will become new deceased coins.
Although the prolonged crypto center has slowed the birth rate of new coins, the list of dead coins is growing longer as more and more questionable crypto projects are dying.