One of the characteristic features of the active market is, ironically, a sufficient amount of unsuccessful projects. Today, this statement concerns the cryptocurrency market, where there are more than 800 dead coins, according to the research conducted by the project Dead Coins.
During its research, Dead Coins examined the coins on the market and defined them as “dead” in the following cases: the project suffered from the severe hack and couldn’t recover; the project was a scam; the coin stopped existing; the coin was just a joke.
To survive in the present highly competitive cryptocurrency market, the coins need high endurance. For example, Bitcoin has passed several recoveries after serious hacks.
When there was the incident with Mt Gox in 2014, the exchange reported the loss of about 850 000 BTC, which made 7% of all Bitcoin supply at that moment. It caused the severe drop in trust in the cryptocurrency market but didn’t affect the investors’ faith in Bitcoin.
The critical factor of Bitcoin endurance is the reputation of a reliable blockchain. It is an almost impossible task for the new coin that hasn’t yet shown itself. Ethereum managed to repeat Bitcoin’s success, but the numerous ICOs that work on its blockchain usually do not set the Thames on fire. TRON and EOS are rather exceptions from this rules since they used Ethereum blockchain for crowdfunding only and have already launched their own networks. Almost half of all ICOs started in 2017 went down the pan due to the one or another reason.
The ICOs mentioned above do not include the projects that haven’t disappeared but remained inactive after their launching. These coins were automatically sent to the coin cemetery from DeadCoins.com. There are even links to such coins, and the users can make sure of their tragic end.
The cryptocurrency market resembles Wild West at the moment, but it seems to change soon. Many teams who stood behind the majority of unsuccessful coins and used them for fundraising, often sold the tokens during the peak market moves and either disappeared or refused to support their projects. But now, when the control over the market improves,particularly from the side of SEC, the number of scam projects should drop, and the market will benefit from it.