The history of cryptocurrencies has its origins in the affluence of the 1980s, a time when financial culture was glamorized in films likeLuoghi di scambioeWall Street. In 1983, cryptography pioneer David Chaumricerca pubblicatathat laid the foundation for electronic payments, blockchain, and virtual currency.
They were ideas ahead of their time, and for many years, decentralized virtual currency was rarely discussed outside of libertarian and free-market political circles. All this changed with Satoshi Nakotomo and his development ofbitcoinsoftware and currency in 2009 – using source code that would later lead to anesplosione delle criptovaluteon the market during the 2010s.
With tens of thousands of currencies in existence today, it is a challenging market for both investors and regulators. Many argue that there aretroppi coinsin circulation, comparing it tothe dot-com bubble‘about 25 years ago.
Analyzing the coin currency market,CoinKickoffhas created a visual analysis of a decade of dead cryptocurrency coins, from failed initial offerings (ICOs) to the loss of market interest.
What we have done
We examined data on over 2,400 dead coins fromCoinopsiaand compiled data on the current status of each coin. We then analyzed the performance of each coin over the past 10 years, noting when coins were eliminated and why.
After compiling this data, we compared it toCoinMCap di mercatofor each year, giving us an accurate picture of all coins on the market.
Main results
- 704 now dead coinsbegan circulating in the cryptocurrency boom of2017, più dei 224 stabiliti nel 2016.
- 2018was the industry’s deadliest year for cryptocurrencies, as751 coins were suppressed .
- Ilhighest death ratefor crypto is found in2014 . 76.5%dei 793 coins non sono più in circolazione.
- 551dei 793coins established in 2014 have been abandoned. No other year has seen so many currencies lose so much trading interest.
91% of Coins from the 2014 cryptocurrency crash are now dead
If you look at the history of cryptocurrencies, 2013 will be considered the first big boom. In a year dominated bytecnologia emergentefrom drones to smartwatches, the price of Bitcoin rose from $150 to $1,000,peaking at $1,127in November 2013. Before the surge, there were just 14 coins on the market, with only Bitcoin and Bitcoin .Litecoinremaining in the top 10 starting from 2022.
Bitcoin’s price surge has led to a wave ofvalute rivalivying for relevance. Our data shows that 84 coins entered the market in 2013 and 607 in 2014, all with the aim of taking advantage of Bitcoin’s collapse in early 2014.in mezzo a uno scandaloinvolving its ties to the online marketplace Silk Road drug.
However, the rush of emerging cryptocurrencies in 2014 did not last. According to our data, 91% of coins created in 2014 died due to low trading volume or abandonment. With the notable exception ofmeme coin Dogecoin, many opportunistic attempts to corner the cryptocurrency market have ended in failure.
Second wave of cryptocurrencies leads to 750 Coins deaths
2017 will be remembered as theSummer of Lovefor crypto historians. For the first time, emerging blockchain technologies have attracted the attention of business leaders around the world, leading to a surge in investment. In July 2017, Goldman Sachs chief technical officer Sheba Jafari predicted that cryptocurrencies would become a mass phenomenon.raggiungerebbe $3.600entro la fine dell’anno.
The year saw a number of profitable ICOs.in particolare Filecoinwhich has amassed $257 million. However, all was not as it seemed. In that year, 704 coins entered the market, now dead, the highest number of any year in the last decade. A 2018 report byICO consultancy Stasis Groupfound that 80% of offerings in 2017, of which $11.9 billion were raised, were identified as scams.
Our research shows that 30% of the 751 deceased coins in 2018 were fraudulent, the highest number of any year in the last decade. The most notable ICO scams were Vietnamese coins.PinCoin e iFan. Local journalists exposed the firms for defrauding as many as 32,000 investors out of $660 million, which Ho Chi Minh City police later investigated.
Three-quarters of the 2014 Coin cryptocurrencies no longer exist
It’s easy to forget that cryptocurrencies are still in their infancy. While investors have been trading stocks and shares for hundreds of years, the first Bitcoin transaction was made at aPizzeria in Floridain 2010. The market has yet to find its way, witheconomisti divisiover the future of the industry.
While cryptocurrency has proven it can disrupt traditional finance with cryptocurrency trading and investing, the industry has been subject to high-profile failures. A report from the China Academy of Information and Communications Technology (CAICT) found that92% of never-launched blockchain projectsare now inactive, with a lifespan of just 1.22 years.
The early years of cryptocurrency proved fatal for many aspiring coins. According to our research, more than half of all coins introduced each year between 2013 and 2018 no longer exist. More than three-quarters (76.5%) of the currencies introduced in 2014, in the wake of the first major cryptocurrency boom, are now dead.
Only 16 Coins cryptocurrencies have been abandoned since 2020
According to blockchain research platform LongHash, 63.1% of dead cryptocurrency projects have been abandoned by investors, causing their prices to plummet. In a saturated market witholtre 12.000 valuteIt is natural that well-intentioned projects fail to generate interest. Coinopsy suggestsa variety of reasonswhy a coin may be abandoned, from an outdated blockchain to the developer’s personal circumstances.
Data shows that the first cryptocurrency price boom in 2013 led to the most abandoned coin. 61.1% of coins from 2013 and 69.5% from 2014 were abandoned. However, recent trends suggest that currencies are losing interest less frequently, as only 16 coins since 2020 have been removed from the market due to lack of investment. Despite this, there arefears that 2022’s big crashin cryptocurrency value will see more coin abandonments in the future.
2017 was the peak year for Coins cryptocurrency scams
The lack of regulation around cryptocurrencies continues to make them a prime target for fraudulent schemes and opportunistic scammers. Not only can the coins themselves be considered a scam, but criminals also use established currencies such as Bitcoin and Bitcoin.Ethereumto deceive investors.
IlCommissione federale del commercioreports that since the start of 2021, more than 46,000 people have been victims of cryptocurrency scams, losing more than $1 billion in total. Renewed interest in the market following the latest price surges of 2021 has led to a wave of cryptocurrency-related crimes, worth $14 billion,Chain Analysisreports .
Despite this, less than 2% of the coins created since 2019 have been identified as scam coins. The market reached its peak in 2017, when 17% of currencies were fraudulent. Fraudsters took$490 milioniduring the year’s ICO bubble, and the Securities and Exchange Commissioncontinua a indagarecrimini di questo periodo.
Coin’s initial offering craze of 2017 led to most of Coins’ failures
Quando le aziende diventano abbastanza grandi da poter essere scambiate sul mercato azionario, lanciano unaofferta pubblica iniziale (IPO)to raise equity capital from public investors. In contrast, an initial coin offering (ICO) is an opportunity to attract interest in launching a new cryptocurrency. This way investors can first buy the coin, but can also offerbroader benefitsthat tie into the company’s product, including a stake in the company itself.
Mastercoin è stato ilprimo a lanciarean ICO in 2013, and the practice exploded in 2017 as mainstream interest in cryptocurrencies increased and prices boomed. Nonetheless, our research shows that 12.6% of all coins launched that year failed due to a failed ICO – more than any other year in the last decade.
Research from consultancy GreySpark Partners found thatquasi la metà di tutte le ICOlaunched in 2017 and 2018 failed to raise funds, and the practice’s susceptibility to fraud ultimately led to increasedregolamento federalewith severe penalties for abuses in the sector. As a result, our data shows that only five coins have had failed ICOs.
Cryptocurrency has survived a turbulent first decade – but what happens next?
The cryptocurrency market is growing at an unprecedented rate, and rapidly evolving technology is creating new investment opportunities, especially the NFT craze of 2021. Bitcoin still dominates the market, andalcuni investitori prevedonoit could reach a price of $100,000 by 2023. However, the value of Ethereum has grown by 409% in 2021. Despite the global downturn driven by global instability due to Russia’s invasion of Ukraine, analysts expect it to contribute to a sector value of $4.9 billion by 2030.
But how did we get to this point? Many expertstracciare parallelibetween the growth of cryptocurrencies and the communicationsbubbleof the early 2000s, where innovation led to an explosion of internet companies and investors looking for the next Amazon or eBay. In contrast, the surge in cryptocurrency investment in 2013 and 2017 flooded the market with new coins and investors looking for the “next big thing.”
While many of these coins have died due to lack of investment, failed ICOs, or scams, this has forced the investment community to sit up and take notice. TheUS governmentand global markets face numerous challenges to regulate cryptocurrencies and better protect investors in the future. However, over the past decade cryptocurrency has demonstrated its ability to disrupt traditional financial markets.
Metodologia
To create a visual analysis of 10 years of dead crypto coins, Coin Kickoff examined data on the status of over 2,400 dead coins from Coinopsy. We have compiled data on each coin’s current life status and the reason and year of its death.
Reasons why the coins died include failed initial offerings (ICOs), abandonment with a trading volume of less than $1,000 in a three-month period, scams, or that the coins were intended as a joke.
We then cross-referenced this dataset with historical snapshots from CoinMarketCap for each year, which show all the coins that were on the market. Data on the total number of coins released in a given year was used to calculate dead coins as a percentage of all coins.
Data was collected in August 2022.