There were more than 500 failed cryptocurrency projects in 2019, the majority of which were scams.
From Christina Comben
The cryptocurrency space is infamously plagued by bad actors and fraud.
Of the 1,840 failed cryptocurrency projects since 2017, the majority were outright scams.
But despite a total of 518 blockchain and crypto projects that will be dropped in 2019, that still means a decrease of 20% compared to the previous year.
Fewer failed cryptocurrency projects in 2019
It is not surprising that most failures of cryptocurrency projects occur when the market flourishes. The largest number of cryptocurrency projects disappeared in the first months of 2019, when the bear market was the most wild.
115 folded in January, with 48 collapsing in February and another 120 in March, accounting for more than half of the total failures of the year. You could say an alarming speed. However, according to data from DeadCoins.com, it was still a decrease of 20% compared to 2018.
So how did these cryptocurrency projects die? DeadCoins divides them into four categories: deceased, hack, scam and parody. Most of the dead projects are categorized as scams.
In both 2018 and 2019, 55% and 58% respectively of the projects came in this category. The rest failed due to hacks or impersonator projects.
Another bites the dust
Despite the high number of failed cryptocurrency projects, only 83 projects disappeared in the second quarter of 2019. This most likely coincides with the fact that market conditions have been turned upside down.
Bitcoin and other cryptocurrencies prices rose steadily during most of the second quarter of 2019.
Most scam projects have a life cycle of less than a year, while legitimate projects that fail usually have a life cycle of one to three years.
The number of ICO projects in 2019 fell significantly throughout the year, according to ICObench.
There were 151 published ICO & # 39; s in January, while December ended with just 30. Fewer projects but more content
The large number of failed cryptocurrency projects may not be an encouraging sign. In some respects, however, this has led to quality projects rising to the top.
Instead of ideas and white papers, blockchain projects have begun to grow up and find real use cases and goals.
In 2019, for example, more military and business blockchain projects were created. According to Deloitte's Global Blockchain survey in 2019, the overall quality of the projects was higher than in 2018, because "blockchain is underway".
So what can we expect if we move to 2020? Of course, many projects are still vulnerable to market conditions. Given the large number of deceased projects to date, it is likely that the number of deaths will continue to rise – along with the birth of more viable solutions.
From Christina Comben
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