A Sobering Look at Cryptocurrency Survival Rates
A study conducted by CoinGecko reveals a startling fact: over 50% of all cryptocurrencies listed on the platform since 2014 have ‘died’ or ‘failed’. Out of the 24,000+ cryptocurrencies that have been listed on CoinGecko since 2014, a staggering 14,039 have met their demise.
The 2020-2021 Bull Run: A Graveyard for Cryptocurrencies
The study provides valuable insights into the patterns of cryptocurrency failures over the years. Most of these defunct coins can be traced back to projects that were 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.
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%, highlighting the challenges faced by projects launched during that tumultuous year.
Factors Contributing to the Demise of Cryptocurrencies
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.
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.
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%.
For those looking to stay informed about the latest trends and developments in the world of cryptocurrencies, cryptoview.io is an excellent resource. With its user-friendly interface and comprehensive data, it’s the perfect tool for anyone looking to navigate the complex world of digital currencies.
