One of our reader recently messaged us about the TrueDeck Project. He said this was the “worst investment ever” as the blockchain-based casino token lost 99% in value. There is no product development. No active team. No marketing. And no new exchange listing.
Project like these come and go — and investors walk away disappointed.
The real question is: How many such dead projects are out there? Why do they die? Through data analysis, Longhash has the answers. In a recent report, we observed a quick analysis of “deadcoins” in the crypto space.
Here are some important facts and stats:
- On an average, over 1000 cryptocurrency projects have died in the last 10 years.
- 63.1% of the projects died due to the lack of interest by the investors and founders. They were abandoned.
- 29.9% of the projects died because they were alleged scams. Scams were on the rise during the bull run in 2017.
- 3.6% of the projects died because of the ICO hype.
- 3.2% of the projects died because they were a joke project.
- Right now, over 1000 projects have less than $1000 in trading volume.
- The average lifespan of a dead project is 1.7 years — these are projects launching with hope and ending with no activity or volume.
Chart 1: Crypto scams have decreased in the year 2019.
Chart 2: Projects that were abandoned, scams, failed, or just parody.
As old scams fadeway, new ones enter. With 2019, however, we are observing the market has matured. Only projects adding value tend to stick around and earn the trust of investors. Others, unfortunately, get rekt.