While not all digital tokens and cryptographic forms of money end up as a successful project, recently released statistics indicate hard forked coins, ERC20 tokens, and other cryptocurrencies have either closed down their development, relinquished their efforts, or misled amateur investors.
Data collated by two digital currency tracking websites suggest over 1,000 digital currencies are “dead projects,” implying no scope of future development of their protocol with their prices decided only by market speculation. Dead Coins and Coinopsy, which conducted the research, grouped the projects under distinct reasons – ranging from coordinated pump and dump, investor fraud, faulty wallets, lack of funds, and in one case, developer death.
While worldwide law requirement may have examined several token issuers to decide their authenticity, novice investors were generally absent-minded to essential research before making millions of dollars in investments. Humorously, the names of a few coin projects are enough to indicate a potential mishap – such as OreoCoin, Snowballs, and CryptoMeth
Aaron Brown, a business markets author for Bloomberg, stated:
“There has clearly been noteworthy extortion and promotion in the ICO market. I have seen 80 percent of ICOs that were fakes, and 10 percent needed substance and bombed soon after fundraising. A large portion of the rest of the 10 percent will presumably flop too.”
The Fake, Disappointing Cryptocurrency Startup
As reported by BTCManager in May 2018, an investigation by Satis Group concluded that false ICOs raised over $1 billion up in 2017, and more than 271 coin organizations overflowed with sketchy activities,