More than 1,000 cryptocurrencies have already failed – here’s what will affect successes in future

Many cryptocurrencies have been launched in recent years, often with great fanfare and celebration, only to fade and fail when they are shunned by the public and investors. According to Coinopsy, which tracks such failures, there are some 1,085 dead coins at the time of writing. That’s a substantial number, even close to the roughly 3,000 that still exist, and high-level industry figures expect many of them to fail as well.

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Why are so many of these projects falling apart? Of course, you expect many initiatives to come and go in a fledgling market; the dot-com bubble of the 1990s is the perfect example. But at the same time, cryptocurrency developers have traditionally spent very little time designing the business use case for their coins and tokens, only realizing after launch that their idea is in the news yesterday.

Time and time again, we see launches that copy a previously successful coin, for example, “coin x is the new Bitcoin.” However, the market already has Bitcoin, and it is still in demand, as evidenced by the 18 millionth Bitcoin that was mined last month. We tend to overlook this issue with developers, even as we rightly criticize regulators for failing to keep up with the rapidly evolving cryptocurrency market, despite efforts like Howey Coin from the US regulator, the SEC, who it was an offer of fake new currency. designed to teach investors about the risks of investing money in cryptocurrencies.

No doubt these kinds of developer mistakes will continue. Here are several other topics that we think will influence future encryption failures:

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