More Than Half of Cryptocurrencies Launched Since 2014 have Failed, CoinGecko Says

More than half of the cryptocurrencies launched since 2014 have failed, according to CoinGecko. The data aggregator found that 58.5% of the more than 24,000 cryptocurrencies listed on its platform have either ceased to trade or have been deemed fraudulent.

CoinGecko defines "failed" cryptocurrencies as those that have not had any trading activity in the past 30 days or have been identified as scams. The platform also includes "deactivated" cryptocurrencies, which are projects that have been shut down or have undergone an upgrade that made the old tokens illiquid.

Of the 14,039 "failed" cryptocurrencies on CoinGecko, 53.6% were launched during the 2020-2021 bull market. During this period, 7,530 tokens ceased to exist.

CoinGecko attributes this to the ease of launching tokens and the rise in popularity of memecoins, many of which are launched without any product in existence.

The worst year for startups, according to CoinGecko, was 2021. Of the coins that launched that year, 5,724 failed, which is more than 70% of all projects launched during that period.

2022 was the second-worst year, with 3,520 cryptocurrencies failing, or about 60% of those launched.

Of the more than 4,000 coins that launched in 2023, 289 registered on CoinGecko have been closed. The platform noted a sharp decline in "mortality" last year, with the number of unsuccessful coins falling to less than 10%.

The findings of the CoinGecko study show that the cryptocurrency market remains a very risky place. More than half of all launched cryptocurrencies have failed, and the majority of them were created during the 2020-2021 bull market.

This suggests that investors should carefully consider the selection of cryptocurrency projects and not invest in those that do not have real value and are not backed by a development team.

Source: Coingecko