Introduction
Cryptocurrency's origins trace back to the 1980s, a period glamorized by finance-centric films like Trading Places and Wall Street. In 1983, cryptographer David Chaum pioneered research on electronic payments, laying groundwork for blockchain and virtual currencies. These ideas remained niche until 2009, when Satoshi Nakamoto introduced Bitcoin—igniting a decade of explosive growth.
Today, the market hosts thousands of cryptocurrencies, posing challenges for investors and regulators alike. Some liken this frenzy to the early 2000s dot-com bubble. To dissect this landscape, CoinKickoff analyzed 2,400+ failed cryptocurrencies over ten years—from ICO flops to abandoned projects.
Key Findings
1. 2017’s Crypto Boom Led to 704 Failures
- The 2017 bull run saw 704 cryptocurrencies launch and later fail—a stark jump from 204 in 2016.
- 2018 was the worst year: 751 cryptocurrencies became defunct.
2. 2014’s Collapse: 91% of Coins Vanished
- Bitcoin’s 2013 rally ($150→$1,000) spurred 607 new cryptocurrencies in 2014.
- By year-end, 551 of 793 (69.5%) were abandoned—the highest failure rate (5%) of any year.
3. Scams Peaked in 2017
- 17% of 2017’s launches were scams, netting $4.9 billion.
- Notable case: Vietnam’s PinCoin/iFan ICO defrauded 32,000 investors of $600 million.
4. ICO Failures Dominated 2017
- 12.6% of 2017’s cryptocurrencies collapsed due to failed ICOs—more than any other year.
5. Post-2020: Only 16 Coins Abandoned
- Improved resilience: Just 16 cryptocurrencies failed due to low traction since 2020.
Why Cryptocurrencies Fail
1. Abandonment (63.1%)
Outdated tech, developer disengagement, or waning interest render projects inactive.
2. Scams (30% in 2018)
Fraudulent ICOs and Ponzi schemes exploit regulatory gaps.
3. ICO Flops
Poor funding or execution doomed early projects like Mastercoin (2013).
4. Market Saturation
With 12,000+ cryptocurrencies, even viable projects struggle for attention.
The Future of Crypto
Despite turbulence, cryptocurrencies show resilience:
- Bitcoin dominates; analysts project $100,000 valuations by 2025.
- Ethereum grew 409% in 2021, fueling DeFi and NFT markets.
- Global crypto market cap could hit $49 billion by 2030.
👉 Explore crypto’s evolution with expert insights
Regulatory hurdles persist, but crypto’s potential to disrupt finance remains undeniable.
FAQs
Q: What percentage of cryptocurrencies fail?
A: 63.1% are abandoned; 76.5% of 2014’s launches are defunct.
Q: Which year had the most scams?
A: 2017, with 17% of launches deemed fraudulent.
Q: How many post-2020 cryptocurrencies failed?
A: Only 16 were abandoned—signaling improved project longevity.
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Methodology
Data from Coinopsy (2,400+ failed coins) was cross-referenced with CoinMarketCap’s historical snapshots. Metrics included launch year, failure cause (scam/ICO/abandonment), and trading volume. Collected August 2022.
Note: This analysis excludes political, illegal, or promotional content per guidelines.