What kills cryptocurrency projects: analyzed the dead currency

Halloween is approaching — it seems like the perfect time to look at the cemetery of kryptonyte. Despite the very young age of cryptocracy, now it has a lot of dead projects. There are even special sites like Coinopsy and DeadCoins who share “autopsy reports” of failed initiatives.

We dug into the data Coinopsy and found there are many interesting cases. Moreover, it was possible to identify some patterns, which, it would seem that even the most breakthrough projects fail.

Over the past 8 years Coinospy gathered 700 examples of good columbarium for cryptosphere. However, it is important to note that the records often are incomplete. In addition, the platform consists of user-generated content, and so expect many inconsistencies.

This site is impossible to download the data in convenient and readable form (and format charts); therefore, for analysis we had to collect data manually.

What kills cryptoprocta?

Statistics Coinopsy allows us to identify several causes of death of cryptoprocta. The most common reason is a failure. That is, investors simply ceased to trade tokens and the trading volume gradually come down to zero. Because of this it lost 63.1 per cent of the projects.

The next popular reason is fraud. A whopping 29.9 percent of the projects initially planned as a Scam and therefore terminated once the attacker has collected enough money. The peak of the popularity of fraudulent projects came in 2017. Perhaps many who were inspired by the sudden bull market of Bitcoin. According to this dataset, in 2017 the number of fraudulent projects increased by 5 times compared to the previous year and amounted to 130 units.

The number of dead cryptoprocta (year of education) — is marked in purple. Orange noted the allegedly fraudulent projects. Source: Cointopsy

Interestingly, the data also includes the names of the founders of some of the projects. The list also contains users known Cryptoprotected forum Bitcointalk nicknames for Crunck and Daniel Mendoza. It is assumed that they had to spend at least 3 fraudulent project. Again, the website is based on information from random users, so it is not necessarily the truth.

As one of the reasons for the failure of the project stands out failed or stale ICO — 3.6 percent. The funny thing is that 3.2 percent are joke projects like AnalCoin, BagCoin and BieberCoin.

Chart dead cryptoprocta based on the cause of the failure. Purple color — cast or projects with low trading volumes rose skam, blue — a failure at the stage of ICO and yellow — comic projects. Source: Cointopsy

How many now dead projects?

In fact, it is impossible to say exactly how many projects died. Moreover, it largely depends on what to invest in the concept “dead.” Now Cointopsy has information about 705 of the dead projects. On their DeadCoins 1779, and on CoinMarketCap more than 1,000 projects with a trading volume of less than $ 1,000 per day. I think this can be attributed to the category of “dying”, not “dead.”

Source: 2Биткоина

Of course, many of the projects on these resources overlap, however, there are surely many other startups of the dead, which were not included in the listing of any of these platforms. It is worth noting that all three sites focused exclusively on English-language projects, but there were quite a lot in other parts of the world.

What is the duration of the life of cryptoprocta?

Resource Cointopsy interesting because it shows the approximate dates of start and death of the project. This allows you to make a rough picture of how long acted a particular project.

  • So we see that projects from the category of “neglected” lived an average 1.7 years.
  • Unsuccessful and hushed ICO, as a rule, survived over 1.6 years. What is surprising is that the comic projects we can say, centenarians — their average length reaches 1.4 years.
  • The shortest life span, of course, fraudulent and Scam projects. Almost all of them did not survive more than 1 year.

In our cryptodata of hontarov you will find lots of other useful information.

Subscribe to our channel in the Telegram. Here soon!

Leave a Reply

Your email address will not be published. Required fields are marked *