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Charting the Number of Failed Crypto Coins, by Year (2013-2022)

This is a syndicated repost published with the permission of Visual Capitalist. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The Number of Failed Crypto Coins, by Year (2013-2022)

Ever since the first major crypto boom in 2011, tens of thousands of cryptocurrency coins have been released to market.

And while some cryptocurrencies performed well, others have ceased to trade or have ended up as failed or abandoned projects.

These graphics from CoinKickoff break down the number of failed crypto coins by the year they died, and the year they started. The data covers a decade of coin busts from 2013 through 2022.

Methodology

What is the marker of a “dead” crypto coin?

This analysis reviewed data from failed crypto coins listed on Coinopsy and cross-referenced against CoinMarketCap to verify previous market activity. The reason for each coin death was also tabulated, including:

  • Failed Initial Coin Offerings (ICOs)
  • Abandonment with less than $1,000 in trade volume over a three-month period
  • Scams or coins that were meant as a joke

Dead Crypto Coins from 2013 to 2022

While many familiar crypto coins—Litecoin, Dogecoin, and Ethereum—are still on the market today, there were at least 2,383 crypto coins that bit the dust between 2013 and 2022.

Here’s a breakdown of how many crypto coins died each year by reason:

Dead Coins
by Year
Abandoned /
No Volume
Scams /
Other Issues
ICO Failed /
Short-Lived
Joke / No
purpose
2013 9 0 0 0
2014 277 20 5 2
2015 223 27 1 2
2016 152 22 4 5
2017 169 71 46 6
2018 390 237 112 12
2019 203 73 51 2
2020 77 19 9 0
2021 34 36 2 2
2022 50 23 8 2
Total 1,584 528 238 33

Abandoned coins with flatlining trading volume accounted for 1,584 or 66.5% of analyzed crypto failures over the last decade. Comparatively, 22% ended up being scam coins, and 10% failed to launch after an ICO.

As for individual years, 2018 saw the largest total of annual casualties in the crypto market, with 751 dead crypto coins. More than half of them were abandoned by investors, but 237 coins were revealed as scams or embroiled in other controversies, such as BitConnect which turned out to be a Ponzi scheme.

Why was 2018 such a big year for crypto failures?

This is largely because the year prior saw Bitcoin prices climb above $1,000 for the first time with an eventual peak near $19,000. As a result, speculation ran hot, new crypto issuances boomed, and many investors and firms got bullish on the market for the first time.

How Many Newly Launched Coins Died?

Of the hundreds of coins that launched in 2017, more than half were considered defunct by the end of 2022.

proportion of launched crypto coins each year that have died

Indeed, a lot of earlier-launched coins have since died. The majority of coins launched between 2013 and 2017 have already become “dead coins” by the end of 2022.

Coin Start Year Dead Coins by 2022
2013 66.67%
2014 76.54%
2015 68.42%
2016 60.87%
2017 57.14%
2018 27.62%
2019 4.74%
2020 1.03%
2021 0.59%
2022 0.06%

Part of this is because the cryptocurrency field itself was still being figured out. Many coins were launched in a time of experimentation and innovation, but also of volatility and uncertainty.

However, the trend began to shift in 2018. Only 27.62% of coins launched in that year have bit the dust so far, and the failure rates in 2019 and 2020 fell further to only 4.74% and 1.03% of launched coins, respectively.

This suggests that the crypto industry has become more mature and stable, with newer projects establishing themselves more securely and investors becoming wiser to potential scams.

How will this trend evolve into 2023 and beyond?

The post Charting the Number of Failed Crypto Coins, by Year (2013-2022) appeared first on Visual Capitalist.

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