More than 1000 cryptocurrencies marked dead in a recent study

In a recent data by Dead Coins, more than a thousand coins have already fallen dead and out of the crypto-market, while Coinospy has given more than 800 as its official count.

This sudden bloodbath in the market appears to be a direct consequence of the failed ICO-backed projects held by every other start-up desiring heavy funding. Another reason could be the globally imposed regulatory actions taken against ICOs to avoid scams and other fraudulent practices.

According to a Bloomberg report, about 80% of the ICOs were scams, while another 10% were not concrete and failed miserably after raising funds.

In March, the ICO advisory group called Satis had put out data indicating that only 4% of the ICOs that raise funds between $50 million to $100 million gained success and had substance. Rest of the ICOs were conducted without a serious product or team, based on empty promises and whitepapers that lacked credibility.

Only about 28% of the total 103 companies that managed the inflow of angel funding during 2013-2014, were able to raise additional funds, says an October report by CB Insight. The research also states that only 14% of tech companies that raised a second round in the U.S. were able to reach the fourth round. More so, only 2% of the blockchain firms reached the finished line.

Arieh Levi, an analyst at CB Insights, also said:

“I don’t think we found the killer app yet. It just seems like there’s been a lot of projects tried, but there aren’t really many users of blockchain protocols beyond speculators and traders.”

Investors have lost billions over these failed projects. Fairly recently, platforms like BitConnect had its market cap slip down to around $4 million from an estimated $3 billion. The ICOs that raised these coins were insignificantly small, but there were losses of at least $500 million.

The question whether the crash of these crypto-coins will take a reverse approach or not is still pending.

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