The surging price of bitcoin (among others) in 2017 led more than a few companies and wanna be big shot traders to hop on the cryptocurrency bandwagon with hopes of striking it rich almost overnight. Some made it lucky while some fell of the bandwagon at high speed corner and never recovered.. Some of the coin offerings seemed dodgy from the outset… and it turns out they were. Bitcoin.comconducted a study of ICOs tracked by Tokendata, and a whopping 46% of the 902 crowdsale-based virtual currencies have already failed. Of these, 142 never got enough funding; another 276 have either slowly faded away or were scams.
The number of casualties might be higher in practice. Another 113 ICOs have either stopped talking on social networks (a good sign interest has died) or have so few adopters that success is very unlikely. And the survivors aren’t necessarily doing much better. Only a “handful” raised over $10 million, which left an uphill battle for the rest.
It doesn’t take much divination to understand why many of these virtual coins fell flat. Excluding the scams, a large chunk of them were targeted at niches like dentistry, freight trucking or real estate — they were never going to attract broad audiences. Others, meanwhile, were me-too efforts that had no real advantage over pouring money into an established format, where prices were more likely to climb.
ICOs are still popular options in 2018, but it doesn’t look like the new wave will fare much better. We’ve already seen Kodak and other companies start cryptocurrencies for little more than a quick boost. Pair that with falling prices and many ICOs face daunting prospects.
But is this really the beginning of the end for cryptocash or is it the beginning of somersome great? The natural curve suggests that crypto cash needed to fall over its almighty increase during the end of last year. There’s life in the coin yet. Just don’t go planning your retirement solely on buying and selling crypto currency.