A recent study by CoinGecko reveals that over 50% of all cryptocurrencies listed on the platform since 2014 have met their demise.
Of the 24,000+ cryptocurrencies listed on CoinGecko since 2014, 14,039 have been deemed ‘dead’ or ‘failed.’
Most Dead Coins Linked to 2020-2021 Bull Run
The study, which analyzed the fate of these digital assets, provides insights into the patterns of cryptocurrency failures over the years. Most of these dead ones originated from projects launched during the 2020-2021 bull run.
During this period, 7,530 cryptocurrencies died, accounting for 53.6% of all failed assets on CoinGecko. Over 11,000 cryptocurrencies were listed on CoinGecko during this bull run, with approximately 70% having shut down since.
In comparison, the previous bull run (2017-2018) witnessed a similar failure rate, with approximately 70% of the 3,000+ cryptocurrencies listed during that period having shut down. The year 2021 stands out as the worst for project launches, with 5,724 cryptocurrencies meeting their demise as of January 2024.
This represents a failure rate of over 70%, emphasizing the challenges faced by projects launched during that tumultuous year. The surge in dead coins during the 2020-2021 period can be attributed to the ease of deploying tokens and the rising popularity of meme coins.
This is because projects are launched without a tangible product, leading to abandonment after a brief period. The situation doesn’t improve for projects launched in 2022, where 3,520 out of approximately 5,800 listed cryptocurrencies have already failed, reflecting a failure rate of around 60%.
However, there is a glimmer of hope for the tokens listed in 2023, with only 289 out of over 4,000 cryptocurrencies meeting their demise, resulting in a significantly lower failure rate of less than 10%.
Factors Leading to Deactivation
According to the report, various factors can render cryptocurrencies inactive on CoinGecko. Inactivity, defined as no trading activity within 30 days, is one such factor leading to deactivation.
Additionally, media coverage or credible reports to CoinGecko may result in the deactivation of projects exposed as fraudulent or engaging in exit scams.
One common reason cryptocurrency projects consider deactivation is when a project team decides to dissolve, rebrand, terminate, or make tokens untradable or obsolete. This prompts them to seek deactivation as they navigate through these changes.
The post Over 50% of Tokens Listed on CoinGecko Since 2014 Have ‘Died’ appeared first on CryptoPotato.