Longhash blockchain platform, published a study in which it examined coins that no longer exist in the cryptocurrency sector and the cause of their extinction.
According to research on the subject, the most common was death by abandonment, meaning that investors have simply stopped trading the token and its volume has fallen to zero (or near zero). 63.1% of projects met this fate. The average duration of such products in the market was expressed as 1.6 years. In these projects, it is stated that after a while the trading activity is no longer available and has been reset.
The second most frequently disappeared projects are fraud or scam projects. For this reason, the fact that the percentage of failed crypto coins is close to 30 is really remarkable. It is no surprise that the period in which scam projects were most out was the year 2017, when the crypto money sector had a big breakthrough.
The rate of failing or fizzling ICOs 4% and coins released for the purpose of joking is 3%, the report said.
How Long Do Doomed Projects Survive?
One of the most interesting things about research data is that it has “Start” and “finish” years for almost every project, which allows us to get a rough picture of how long each project has survived. Unsurprisingly,” abandoned " projects tended to last the longest, with an average lifespan of 1.7 years. Failed and fizzled ICOs lasted almost as long, with an average lifespan of 1.6 years. Joke projects, it seems, remain funny for only an average of 1.4 years. Scam projects had the shortest average life of the bunch, lasting about a year.