Two websites, DeadCoins and Coinopsy, which catalogue failed cryptocurrency projects, have revealed that about a thousand crypto projects have failed to date. The sites include detailed information about these projects, including explanations of why they failed.
What are dead coins?
A dead coin is a token that has been scammed, abandoned, has wallet issues, no nodes, a dead website, low volume, no social updates or a lack of developers.
The website Coinopsy has offered a bounty of up to 0.1 ETH for information about dead coins. The bounty is not easy to earn, however: The coins that they have listed on their website – a total 247 dead coins – all have proof and documentation that is not easily available with a simple Google or Way Back search.
Dead coin projects range from outright scams to true “abandonware.” Dead tokens include Titanium, a project that died in a Securities and Exchange Commission (SEC) investigation, and BRIG, a scam by two brothers (Jay and Jack Brig).
In the blockchain world, the challenge of massive token fundraising comes with challenges. Almost everyone expects some Cryptocurrency startups to fail, but many fail after having been flooded with cash. Raising funds too quickly can cause problems that can destroy a fledgling crypto company.
Scams destroying trust in the cryptocurrency market
Now-dead ICOs and scams raised as much as $1 billion last year, with about 297 questionable startups in the mix. According to TechCrunch, there are some organizations that are dedicated to repairing broken ICOs, like CoinJanitor from Cape Town; however, it is not clear at all that they have the confidence of the market.
Ultimately, pricing scams just hurt the industry and make it far more difficult for ICOs that feature a substantive product with a defined vision to succeed.