The researchers counted more than 1,000 dead cryptocurrency projects

According to the sites Coinopsy and Dead Coins which track information about digital currencies, about 1,000 cryptocurrency projects show no further signs of development and any hint of activity.

Among them are long-forgotten copy of the popular cryptocurrency boom which took place in 2013-2014 and is quite «fresh» projects cryptocurrency and ICO closed down for different reasons this year.

Despite the fact that financial regulators is constantly check issuers of the tokens on the legitimacy, novice investors typically do not conduct even a basic analysis of the projects, which invest millions of dollars. Although many of them, such as CryptoMeth or OreoCoin, has by its very name suggests that contact with them is not worth it.

The most common reason for project closure is an outright fraud, when after the first round of fundraising via the ICO project sites are closed, and the code is thrown. In some cases, even reported on the death of the creators of the project. Some developers use the scheme to market manipulations such as «pump and dump». In some cases, the project is gradually «dying» because of the constant problems with wallets and other situations caused by unprofessional approach of the developers.

«The market ICO has become a kind of platform for a large number of scams. According to my observations, 80% of the projects were fraudulent, 10% lacked substance, which they closed immediately upon receipt of funding. The remaining 10% are almost certain to fail,» — said the journalist Bloomberg Aaron brown (Aaron Brown).

According to the study
Satis Group, fraudulent ICO gathered in 2017 over a billion dollars, with 271 of them were engaged in plagiarism in the White paper, used the personality of the famous people which were given for their employees, and other questionable activities.

According to the study, only 8% of tokens were able to get after the ICO on a cryptocurrency exchange with good reputation.

And while industry startups famous for its high percentage of successful projects in the blockchain startups, the figure is lower than the market average. According to a report by CB Insights that was published in October of 2017, only 28% of the blockchain startups reach the second round of investment, while in traditional business, the figure is 46%.

«I think that at the moment on the market there is no project, which would be able to beat your competitors. Despite the fact that luck tried already a lot of projects, usually in addition to traders and speculators, they are not interesting,» — says the analyst CB Insights Aria Levi (Levi Arieh).

Note: there is a South African project CoinJanitor that changes tokens of abandoned projects with a market capitalization of less than $ 50,000 on their own and tries to fix problems with code.

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