In the blockchain industry, there are new projects being constantly created with innovative elements to try and differentiate themselves from the competition. It is clear that the only way to attain a strong user base and a positive market recognition is by developing a functioning platform or application, and by taking the necessary steps to facilitate its adoption to both users and other developers.
Given the fact there are several projects in the crypto scene that have been able to achieve tremendous success, it is completely understandable to see other teams with the same coding skills trying to come up with similar ideas in their hopes of achieving similar results, especially if we take into account the bull market from last year, where it seemed as is any project using blockchain technology could easily become a multi-million dollar project.
The truth is that when there is strong competition, besides a lot of innovation coming from the projects, which is the only way to survive in the market, there will also be a very high failure rate coming from said projects, especially from the younger ones that are trying to position themselves in the market.
The end result of this circumstance is a high failure rate, leaving those cryptocurrencies without any market value, and the investors end up suffering a huge loss.
Failed coins in the cryptocurrency scene
Even though the well-known cryptocurrencies have a market capitalization well in the billions, there are a lot of smaller coins whose overall value is relatively small, and can easily disappear without no one ever finding out. In the case of the most popular ones, this is something extremely difficult to imagine because due to their high market value, if these coins disappeared, the economic hit would certainly affect other industries as well, but this is not the case when it comes to obscure and small coins that almost no one knows.
To put things into perspective, the website coinmarketcap.com, which probably is the most popular website to check everything related to cryptocurrencies prices, volumes, market caps, and graphs, it has more than 2000 cryptocurrencies listed. In the following image, we can see the ones at the bottom of the list.
It would be no exaggeration to think the majority of cryptocurrencies in existence will probably end up failing due to a lack of adoption, or simply because the project was never developed with good enough skills to make it usable in the real world.
There are reports about how many projects in total have failed so far and the numbers are staggering, there are probably more than 1000 cryptocurrencies that have failed, “between 800 and 1,000 cryptocurrencies have failed and are now worth close to nothing”, Sourceregarding the amount of monetary value involved in these projects, there is a report indicating that “scam and dead ICOs raised $1 billion in 2017 with 297 questionable startups in the mix” Source. It is clear that this problem is very real and this is why some people see regulations as one way to help the crypto market in gaining more credibility and stability.
However, this doesn’t just happen in the cryptocurrency scene, every type of entrepreneurial activity will always have the risk to end up failing, when it comes to regular startups, for example, they have a failure rate of about 90% according to this report.
Nevertheless, when a project fails this doesn’t necessarily mean that everything that was created is literally worthless, this is especially true if the project in question belonged to the digital sector, because this would mean the team invested a lot of hours in designing the way the platform or application would work, and the same can be said when it comes to actually write the code. A project might have no opportunity to gain proper recognition from the market, but the work that was done to make this project a reality is certainly real, this of course, doesn’t apply to other startups that don’t revolve around coding new solutions, in those cases the value would exist just in the form of the experience that was gained, and not in the form of actual code that was written.
Luckily, thanks to the fact there is a lot of innovation going on in the crypto industry, there is a new company that is planning in acquiring the value from projects that ended up failing, but that have also developed valuable assets that aren’t being put to good use as they should be.
This company is known as CoinJanitor and they believe that a lot of failed projects have valuable data and code that they can leverage and find something useful to do with them, this is why they are offering people that hold dead coins an opportunity to sell them to CoinJanitor, in such a way that everyone involved ends up winning. Dead projects and its investors avoid a total loss, and CoinJanitor acquires useful assets that they can later use for more productive goals.
In the crypto sector there are too many projects with valuable code and data that ended up failing, the number of cryptocurrencies that have failed is around 1000 according to some reports, but there is a company interested in acquiring the valuable assets from these failed projects and find the way to make something useful with them, which means, they are recognizing the value from the work that was done to create these projects, and are more than willing to purchase everything related to them, which will allow the people that hold those coins to reduce what would otherwise be a total loss in their investment.
More information about this project can be found in the following links:
· Project Website: https://www.coinjanitor.io/
· Products & Services: https://www.coinjanitor.io/#how-it-works
· Next event: https://www.decentralized.com
· Medium: https://medium.com/@CoinJanitor
· Twitter: https://twitter.com/CoinJanitor
The information contained within this post shall not be taken as a financial advice. I am not a financial advisor and none of your investment decisions should be carried out based on any information presented here. You can lose all of your money by investing. The information presented in this article is for educational and entertainment purposes only.