Nearly Two-Thirds of Crypto Projects Meet their Demise, New Research Finds
Nearly two-thirds of crypto projects to launch in the past several years have met their demise, according to a recent analysis of over 12,000 cryptocurrency projects.
The report, conducted by AlphaQuest and Storible, found that 72% of projects born during the 2020-2021 bull run have failed.
Furthermore, among 12,343 crypto projects investigated, over 8,850 have become defunct in the past year.
The year 2023 proved to be the toughest within the 2020-2023 cycle, with nearly 60% of dead coins disappearing during this period.
In total, the study revealed that 65% of crypto projects had met their demise by 2023.
The research also identified that The Terra and Cardano ecosystems have the highest number of defunct coins.
The researchers employed specific criteria to determine the “dead” projects, including low trading volume, low liquidity, inactive or deleted Twitter accounts, websites being down, and delisting from CoinMarketCap.
The report said that analysis of the “dead coins” uncovered some common characteristics among the failed projects.
The vast majority, 93%, suffered from low liquidity or trading volume, indicating a decline in investor interest.
Additionally, more than half (58%) of these unsuccessful coins had inactive or deleted Twitter accounts or websites, indicating a lack of continuous social engagement or operational presence.
Furthermore, almost half (48%) were delisted from major tracking platforms such as CoinMarketCap, solidifying their failures.
The susceptibility of crypto projects to market fluctuations and bankruptcies was also evident in the research findings.
The collapse of major platforms like Terra and FTX resulted in a high percentage of projects failing.
After the Terra crash, 35% of crypto projects were
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