As Halloween approaches, exploring the cemetery of the cryptocurrency industry seems to be an opportune time. Even in such a young industry as encryption, many projects have disappeared, and sites like Coinopsy and DeadCoins have also provided autopsy reports from netizens.
For fun, we did some mining of Coinopsy's data and learned more about the types of project failures. We found some interesting patterns.
In eight years, Coinospy has more than 700 entries, which is one of the best ways to enter the encryption project cemetery. It should be noted that Coinopsy's data is incomplete and provided by netizens, so it may contain some errors.
- The size of the crypto assets increased from 926 million to 2.7 billion, and the rate of return exceeded 100%. The grayscale report indicates that the funds are in large quantities.
- Bitcoin vs. US Dollar: Who has value support?
- Jianan past events: floating up and down eight years, or become the first mining machine stocks
- XRP volume breaks through, mainstream currency quotes start
- Mid-Autumn Festival surprise? Lawyers say Mt. Gox Bitcoin worth $2 billion is expected to recover
- Oasis of Water Drops, Weibo Web 3.0
The site also does not provide downloadable chart format data, so we collected this data manually for analysis.
What killed the cryptocurrency item?
The data collected included several different causes of death. The most common is to die and die, which means that the investor has stopped trading tokens and their trading volume has dropped to zero (or close to zero). This is the case with 63.1% of projects.
The next batch of dead projects is (suspicious) fraud – up to 29.9% of projects on Coinopsy fall into this category. It may be affected by the out of control of the bull market, most of which occurred in 2017. Among these data, the number of scams in 2017 has increased more than five times from the previous year.
Interestingly, the data also includes the names of the founders of some projects. The two founders, a founder of Bitcointalk called "Crunck" and a man named "Daniel Mendoza", are listed on three different suspected fraud items on the list (although the data is collected based on netizens) May not be accurate).
Other causes of death in cryptocurrencies include ICO failures or sloppy (3.6%) and obvious "jokes" (3.2%) such as "AnalCoin", "BagCoin" and "BieberCoin".
How many dead cryptocurrency items are there?
It is impossible to say exactly how many encryption items have died. The answer depends to some extent on how you define "death." Cointopsy currently lists 705 projects, DeadCoins lists 1,779 projects, and CoinMarketCap lists more than 1,000 projects with less than $1,000 per day. Depending on the volume of transactions, they can be classified as "dying" even if they are not "completely dead."
Of course, there are overlaps in the three databases, but there may be many unlisted deaths. Mainly those failed international projects based on non-English markets are likely to be missed, because the above three websites are mainly for English audiences.
How long does each dead project last?
One of the most interesting things about Cointopsy data is that almost every project has a "start" and "end" year, which gives us a general idea of the survival time of each project.
Not surprisingly, “abandoned” projects (those projects that have actually started but ultimately lost interest to investors) tend to last the longest, with an average life expectancy of 1.7 years. The ending and failure of the ICO lasted almost as long as the average life expectancy was 1.6 years. Of course, the joke project lasts only 1.4 years on average.
The average life cycle of a scam project is the shortest, lasting only about a year.
Original title: "What killed the encryption project: an in-depth analysis of the cryptocurrency of death"
Translation: Su Laotou
Original link: https://www.longhash.com/news/what-kills-crypto-projects-analyzing-deadcoins
Author: Charlie Custer