Unlike regular projects in the non-crypto world, many crypto projects fail. It is said that more than 80 percent of crypto projects fail after their ICO. Only a few projects keep going. Some projects turn themselves into something else, and again, there is no big scope. Have you ever wondered what could be the reason for such a failure? I was curious to check some data. I approached Meta AI and asked for some percentages on the failures, and below is the data I got from Meta AI.
1. Initial Coin Offerings (ICOs): According to a 2020 report by ICO Rating, approximately 80% of ICOs were scams or failed projects.
2. Cryptocurrency exchanges: A 2020 report by CryptoWisdom estimated that around 20% of cryptocurrency exchanges were scams or had suspicious activities.
3. Crypto assets: A 2022 report by Chainalysis estimated that around 3.7% of crypto assets (tokens) were scams or had suspicious activities.
4. DeFi projects: A 2022 report by DeFiPrime estimated that around 10% of DeFi projects were scams or had suspicious activities.
I don't know to what extent the data can be true but even many big players tried to start their cryptocurrencies and failed. Some games and projects managed to be successful, but when a bear market hits, they find it hard to sustain. Today every crypto project is either looking for some additional funding or they are waiting for the next alt season to happen. When BTC had a good pump, it was not enough for these projects because they were dependent on the altcoin pump and the alt season was not there yet.
Crypto is constantly evolving
Based on the above data we cannot say that crypto is such a failure. We have to understand that crypto is constantly evolving and undergoing many changes. Based on the facilities we have with blockchain technology, we can see several changes happening in the crypto world every year. There are so many new projects today compared to how it was about 5 years back. Every now and then there are some new projects emerging and there are investors who would like to give the project a try. Many people want to try just one project to see if they can hit a jackpot.
Stay safe with crypto
I would like to leave this article as a caution to every individual who are enthusiastic about trying new games and investing in new project. I would say invest only the money that you are ready to burn and not your hard earned money. We cannot guarantee in which direction these crypto projects can go. The project owners might be optimistic about their projects but they may not be sustaining for the long term. If you would like to test the waters, then dip only your toes and not your entire legs. You will never know what will come out of the water and drag you in.
Stay optimistic
There are a few project even though they are having a tough time, they still want to be around and they are continuously looking forward to provide better experience to the investors. All we can do it just stay optimistic and hope the situation of the market will change some day and maybe at that time it can be good fortune.
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