2019 records lowest dead crypto projects; ‘scams projects’ have lowest lifespan claims report Source: Unsplash
Many crypto projects died a slow and painful death while a few of them were outright scams. Reports, however, suggested that the most common reason for the crypto projects falling into decay was either because these projects were abandoned or were scams [of which were some were orchestrated under the guise of initial coin offerings].
According to the latest LongHash data, most of the dead crypto projects were either abandoned or were scams. According to the data compiled by sites like Coinopsy and DeadCoins, 63.1% of projects were abandoned due to low volume or developers chose to walk away from the project. Alleged scam projects were the second-highest dead crypto projects and have the lowest lifespan of less than a year, while other abandoned projects noted an average lifespan of 1.7 years and the “failed and fizzled” ICOs had 1.6-year average lifespan. Additionally, the report further revealed that Joke projects only stayed for around 1.4 years.
While the above data from the two websites do not give the whole picture, it does highlight the rise of crypto-related projects in 2014, which was around the time the collective market cap hit a double-digit.
2017 saw a major upsurge in the industry which set the stage for many crypto-projects both genuine and fraudulent. The same year witnessed huge number of dead projects and what’s worth noting is that half of those dead projects were alleged scams. Bitcoin’s price almost hit $20,000 but fell below $4,000 in 2018. The same year registered a significant decline in dead crypto-based projects, and this year too, half of the ‘dead’ projects were labelled as scams.