Researchers at the analytic portal LongHash have analyzed 700 “dead” cryptocurrency projects to identify the reasons for the loss of their activity.
Based on Coinopsy data for an eight-year period, analysts found that 63.1% of the projects were abandoned without any reason. Investors gradually stopped trading and using the tokens of these projects and the volume of transactions with them fell to zero.
Following are fraudulent projects – they account for 29.9%. Many of them were launched in 2017 in the wake of tremendous excitement. It is interesting that in 2016 such projects were launched 5 times less.
The information on projects also contains information about their founders. So, a certain Daniel Mendoza and a Bitcointalk user named “Crunck” created three fraudulent projects at once.
Researchers took out startups that failed in some categories – they turned out to be 3.6%, as well as “comic” projects – 3.2%.
The projects from the “abandoned” category turned out to be the most durable – the average lifespan is 1.7 years. A little more than a year and a half on average, failed startups live, and “comic” ones – 1.4 years. Fraudulent projects are the fastest to stop functioning – they live on average 1 year.
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