A number of cryptocurrencies have been joining the list of dead coins. The list has over 700 lifeless tokens and according to Coinopsy, over 1000 have no means of resurrection. A number of startups made use of ICO’s to fund projects that initially failed which led to most of the extermination. Examples of cryptocurrencies like this are Droplex, CryptoMeth and Roulettecoin. Aaron Brown, an investor, and author said that the ICO market is filled with a large number of fraudulent activities. He is of the school of thought that 80% of ICO’s are frauds, 10% do not have substance and the last 10% will invariably fail regardless.
Cryptocurrencies with Over $50 Million Market Cap
ICO’s with a market cap of over $50 million have a high chance of being successful according to the ICO advisory firm Satis group March analysis. Most of the time, ICO’s usually are just promises with no actual development team behind the projects. According to CB Insights, only 28% of the 103 Blockchain companies that received funding in 2013 and 2014 raised any additional money. Between 2008 and 2010, only 48% of the over 1000 tech companies raised a second round of funds.
Billions of dollars have been lost as a result of failed projects. An example is BitConnect which lost investors over $500 million when its market cap shrunk from $3 billion in December to $4 million. Now that the crypto market prices have collapsed, a large number of cryptocurrencies are giving up. Bitcoin has reduced by 57% and a number of experts are expecting its demise. Richler Vanierwitz who works in Coinopsy stated that a large number of ICO’s will not make it to an exchange, he also stated that investing in ICO will become a very unprofitable venture.
Many crypto experts believe in a crypto afterlife and CoinJanitor has plans to take over projects that are dead as well as their coins and to perform this action, CoinJanitor created its token. A number of scenarios have arisen where dead projects were picked by a developer who brought it back to life. Situations like this happened a lot last year but less frequently this year. Other times, dead coins stay dead.