LongHash analyzes abandoned and scam projects

Posted 15 October, 2019

Blockchain research platform, LongHash, analyzed statistics on 700  “dead” cryptocurrency projects based on Coinopsy data for an eight-year period and found out the most common causes of loss of activity. 

The most common cause was abandonment without any further explanation. Investors stopped trading such tokens, and the volume of transactions with them fell to zero. The total mass of such projects was 63.1%. 

The second biggest group of unnecessary tokens is related to alleged scams. Thus, about one-third of all projects were alleged scams. It’s worth mentioning that most of these came in the second half of 2017 amid the bullish rally of the crypto industry. Bitcoin hit its record high at the time. Among other things, information about projects contains information about their founders. For example, on the account of the user of the Bitcointalk Crunck forum and a certain Daniel Mendoza, there were three different projects that were subsequently recognized as fraudulent.

The next two groups of dead crypto projects, accounting for over 3% each, are failed initial coin offerings (ICOs) and obvious jokes.  

While it’s difficult to estimate the total number of failed crypto projects, Coinopsy lists over 746 names at the moment. It is also worth noting that other researchers have counted more than a thousand "dead cryptocurrencies." 

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15 October, 2019 13:55

← Binance Coin launches on Swiss Stock Exchange

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