Make ICOs great again: Over 800 Cryptos are dead.
In the recent carnage of cryptocurrencies, where the most popular token bitcoin has shed around 70%, around 800 cryptocurrencies are now worth less than one cent, according to CNBC.
The website deadcoins.com currently lists 820 digital coins which are either dead, got hacked or were just outright scams, to begin with. Another site, coinopsy.com, also has details on 255 coins which have joined the crypto graveyard.
Coinopsy’s list includes the controversial Bitconnect coin, which saw its value plummet in January before the project was shut down after receiving cease & desist letters from US regulators.
And among the deceased projects on deadcoins.com was Titanium Blockchain Infrastructure Services (TBIS), which allegedly raised millions through an ICO before its founder was charged with fraud in May this year.
The data indicates that the crypto space has been a hotbed for scams and frauds since it exploded in popularity last year.
They hype has cooled off in the first half of this year as prices for bitcoin — the world’s biggest cryptocurrency — have fallen by around 70%.
And amid significant price corrections for major coin projects, more dodgy ICOs have fallen by the wayside — a process exacerbated by the fact that less robust ICO propositions are now firmly in the sights of regulators.
Those measures have extended to Australia, with corporate regulator ASIC introducing new measures against domestic ICOs in order to protect investors.
Despite that, a report by global accounting firm PWC showed that more than 500 ICOs have been launched in the first half of 2018, with a total volume of $US13.7 billion — almost double the $US7 billion that was recorded for the whole of 2017.
The report made mention of two big projects — messaging service Telegram and blockchain platform EOS — which collectively claimed to raise around $US6 billion this year.
However, despite many coins going dead, optimism continues to persist even in challenging times. Proponents of cryptocurrencies believe that regulations will eventually become clearer in the future and will help in boosting market participation.
While cryptocurrencies have yet to be adopted as a mainstream mode of payment, technological advances and updates continue to enhance their usefulness. Cryptocurrency enthusiasts desirous of making investments should keep a close eye on what they are buying and should make sure they really understand what’s on offer in ICOs before jumping in with their hard-earned money.
Despite the increase in the number of ICOs and a significant increase in the amount of capital raised through ICOs, valuations have taken a dive across the market. CNBC cites a report by CoinSchedule that says companies secured funding of $3.8 billion via ICOs in 2017, and the number has increased to around $11.9 billion this year already.
Now it’s time. It’s time to make ICOs great again. In order to create a bankless- crypto economy, Comment us what we can do to stop people making shitcoins.
TL;DR:
- New cryptocurrencies are created through a process called initial coin offering
- The process raised £2.9 billion in 2017 and is already up to £9 billion in 2018
- The website Dead Coins tracks hundreds of new and emerging cryptocurrencies
- It lists 832 coins as ‘Deceased’, ‘Hack’, ‘Scam’ or ‘Parody’ making them worthless
Disclaimer:
This article is not a recommendation by BexPro or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. BexPro makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date, this article was written, the author owns no cryptocurrencies.
