Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Other Popular Cryptos / Coins => Topic started by: Husires on January 31, 2024, 04:18:59 PM
-
Most dead cryptocurrencies came from projects launched during the 2020 - 2021 bull run. 7,530 cryptocurrencies from that period have died, accounting for 53.6% of all dead cryptocurrencies on CoinGecko. Over 11,000 cryptocurrencies were listed on CoinGecko during the previous bull run, with ~70% having shut down since.
In comparison, 1,450 projects launched during the 2017 - 2018 bull run have since shut down. This is on the back of over 3,000 cryptocurrencies listed, resulting in a similar failure rate of ~70%.
The high number of dead coins during the 2020 - 2021 period can be attributed to the ease of deploying tokens, and the rise in popularity of memecoins. However, many memecoin projects launch without a product, with the majority being abandoned after a short period of time.
https://www.coingecko.com/research/publications/how-many-cryptocurrencies-failed
(https://talkimg.com/images/2024/01/31/kbwaC.png)
Statistics say that the period 2020-2021 is the period that witnessed the most dead currencies due to the great prosperity of the market in that period, but what I could not understand is why 2023 was among the lowest years, as the corrections were at their peak and interest rates were increasing, and yet according to CoinGecko in 2023, 289 listed cryptocurrencies died.
Why do you think the year 2023 witnessed the lowest number?
-
Statistics say that the period 2020-2021 is the period that witnessed the most dead currencies due to the great prosperity of the market in that period, but what I could not understand is why 2023 was among the lowest years, as the corrections were at their peak and interest rates were increasing, and yet according to CoinGecko in 2023, 289 listed cryptocurrencies died.
Why do you think the year 2023 witnessed the lowest number?
Between 2022-2023, that was the item the crypto market used to heal. If you recall, thought the period of January 2022 to November 2022, bitcoin dump in price throughout that time to $15k levels, no teams could convince people with new project to invest on because a lot of them has lot more than what they didn't prepare for in that collapse and it affected most of them, I don't think some has recover from those losses.
Normally, new coins pop up during bull run and that is the time we do experience shitcoins and scam coins, 2020 was great, 2021 was the peak of them and 2022 was the end of the run and since then, they have never been any hype or trend about new coins, AI were common but didn't last long enough.
-
Between 2022-2023, that was the item the crypto market used to heal. If you recall, thought the period of January 2022 to November 2022, bitcoin dump in price throughout that time to $15k levels, no teams could convince people with new project to invest on because a lot of them has lot more than what they didn't prepare for in that collapse and it affected most of them, I don't think some has recover from those losses.
Isn't this a major reason to see a lot of Dead Coins? The continuous discharge of Bitcoin all the time took place to the levels of 15k, some expected the price to be 10k, and the recovery was in the last months of the year.
In 2021, the peak of prices was so the opposite should happen, which is that new coins will continue to grow and the Dead Coins are less, so many money exists and it is easy to deceive investors.
-
Why do you think the year 2023 witnessed the lowest number?
Aside from what other member said, IMO it's also because it's easier and less costly to create new token or sidechain instead. With sidechain, you can partially rely on main blockchain for security of your sidechain.
-
Statistics say that the period 2020-2021 is the period that witnessed the most dead currencies due to the great prosperity of the market in that period, but what I could not understand is why 2023 was among the lowest years, as the corrections were at their peak and interest rates were increasing, and yet according to CoinGecko in 2023, 289 listed cryptocurrencies died.
Why do you think the year 2023 witnessed the lowest number?
Cryptocurrencies may be deactivated and delisted from CoinGecko based on the following circumstances:
+ Cryptocurrencies do not reflect any trade activity within the last 30 days.
+ Projects are revealed as a scam or rug pull, through the news or direct reports to CoinGecko from verifiable sources.
+ Projects request to be deactivated, i.e. when the team disbands, rebrands, shutters the project, or undergo major token overhauls where old tokens become sufficiently illiquid or dead, according to CoinGecko standards[1].
I'm a bit surprised that we already have data on dead coins in 2023. Coingecko evaluates tokens within the last 30 days regarding development activities, project communication and token trading activities.
I think 2023 is a period of doubtful market recovery, only the best projects will appear like Arb, Op, Sui, Sei... Weaker projects can wait for the bullrun to easily raise funds for project development. Meanwhile, scam projects also do not want to appear when investors are in defense mode and only want to invest in BTC and top altcoins for maximum safety.
The increase in investor awareness through the 2017 and 2021 cycles has helped them be more proactive with their crypto investment plans. Scammers and scam projects have also adapted and played to the cycle. Our work is to be more cautious in 2024 and 2025. I think when the market heats up, many scam projects will appear!
[1] Dead Coins: Over 50% of Cryptocurrencies Have Failed (https://www.coingecko.com/research/publications/how-many-cryptocurrencies-failed)
-
The increase in investor awareness through the 2017 and 2021 cycles has helped them be more proactive with their crypto investment plans. Scammers and scam projects have also adapted and played to the cycle. Our work is to be more cautious in 2024 and 2025. I think when the market heats up, many scam projects will appear!
There are a lot of scams, that's clear, but also most investors were just looking for a quick profit. The first major pump, they are selling and looking for something new, very few "small" coins can handle that. I would rather say that they are speculators and not investors.