Cryptocurrency

Cardano

Terra

Time

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/reality-check-in-the-crypto-world-high-failure-rates-of-projects/" data-wpel-link="internal">Reality Check in the Crypto World: High Failure Rates of Projects</a><br></p>
<p style="text-align: justify"><strong><a href="https://en.coin-turk.com/investor-confidence-rises-post-fomc-meeting-a-surge-in-crypto-prices/" data-wpel-link="internal">Cryptocurrency</a></strong> reflects a reality in its world, where projects may succeed or fail. Since 2014, over 24,000 cryptocurrencies have been listed. 65% of them are considered dead or unsuccessful. This situation is not very promising as it shows that a large portion of the projects are not viable in the long term. So, what does research say about this?</p> 
<h2 style="text-align: justify" id="dead-coins-peak-in-this-time-frame">Dead Coins Peak in This Time Frame</h2> 
<p style="text-align: justify">Towards the end of 2022, the cryptocurrency market experienced a significant decline, and it was determined that 65% of all projects in the industry had failed. The bull run during 2020-2021 led to the emergence and rapid growth of many projects but also brought with it many failures.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-318216 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/02/olu-coin.png" alt="" width="1543" height="1399"></p> 
<p style="text-align: justify">According to CoinGecko, 53.6% of the 7,530 cryptocurrencies launched during this period ceased operations. However, it should be noted that this is only part of the picture, as research has revealed that by 2023, 65% of cryptocurrency projects had ended and were classified as dead coins.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-318212 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/02/cardano-coin-turk-com-.png" alt="" width="602" height="676"></p> 
<p style="text-align: justify"><strong>Terra</strong> and <strong>Cardano</strong> ecosystems were observed to have the highest rates of project failure. Researchers classified projects using criteria such as low trading volume, lack of liquidity, inactive <a href="https://newslinker.co/category/social-media/" data-wpel-link="exclude">social media</a> accounts, and non-operational websites. However, it’s important to note a significant exception to this trend: <a href="https://coin-turk.com/dogecoin-madencilerinin-doge-fiyat-rallisi-hedefi-ve-on-chain-verileri" data-wpel-link="internal">Dogecoin</a>. Dogecoin, as a meme-based cryptocurrency, managed to maintain its presence in the market and challenged others.</p> 
<h2 style="text-align: justify" id="failure-in-meme-coins">Failure in Meme Coins</h2> 
<p style="text-align: justify">The popularity of meme-based <strong>cryptocurrencies</strong> and the rapid emergence of projects in this area increased failure rates. About 70% of the more than 11,000 cryptocurrencies launched during the 2020-2021 period shut down, while during a similar period in 2017-2018, this rate was around 50%.</p> 
<p style="text-align: justify">Of the more than 3,000 projects listed during the bull run at that time, 1,450 closed, reflecting a similar failure rate. This increase is largely attributed to the simplification of the token creation process and the rise of baseless projects.</p> 
<h2 style="text-align: justify" id="2021-and-beyond">2021 and Beyond</h2> 
<p style="text-align: justify">According to CoinGecko’s data, most of the 5,724 crypto projects launched in 2021 ended in failure by January 2024. This figure exceeds 70%, representing a majority of the listed cryptocurrencies. This clearly shows that 2021 was a particularly challenging year for new crypto projects.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-318215 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2024/02/olu-coin-coin-turk-com-.png" alt="" width="1850" height="797"></p> 
<p style="text-align: justify">However, the failures do not end there. By 2023, even new cryptocurrencies bearing the marks of 2021 failed to achieve the expected success. 3,520 projects are no longer active, indicating a closure rate of 60%. These figures reflect the harsh reality of the crypto world. That is, there are as many risks as there are promised opportunities.</p> 
<p style="text-align: justify">In 2023, however, there was a noticeable decrease in the failure rate. Like in previous years, only 10% of the more than 4,000 <strong>crypto</strong> projects launched this year failed. This suggests that cryptocurrency projects are showing improvement in sustainability and quality.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/reality-check-in-the-crypto-world-high-failure-rates-of-projects/" data-wpel-link="internal">Reality Check in the Crypto World: High Failure Rates of Projects</a></h5>

Reality Check in the Crypto World: High Failure Rates of Projects

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