Approximately 800 established tokens projects have died in the last 18 months. This compares with the current digital coin market and the dotcom bubble in 2000.
A digital token is created through a process known as the Initial Coin Offer (ICO). A company can issue a new currency that investors can buy. The investors has no equity interest in the business capital, but the cryptocurrencies they holds can be used as a business product.
It is often purchased at ICOs because the tokens are cheap and could offer great benefits in the future. Right now we’re going through an explosion at the ICOs. 3.8 billion was raised through ICOs in 2017. This year the figure has soared to $11.9 billion, according to CoinSchedule, a website that tracks the market.
Hundreds of these projects are now dead because they were scams, a joke or because the product has not materialized. Dead Coins is a website that lists all the cryptos that fall into those categories. So far, he’s identified just over 800 digital tokens he considers dead. These coins are worthless and are traded at less than 1 cent.
Cryptocurrencies have been under a lot of pressure but there is still optimism that regulators could look more favorably on them and that they could boost market share. Arthur Hayes, CEO of BitMEX, the cryptocurrencies exchange, told CNBC’s “Fast Money” on Friday that bitcoin could rise to $50,000 by the end of the year.