1 year ago
CoinGecko compiled dormant token information connected its level since 2014, showing that 2021 was the biggest twelvemonth for deactivated coins, coming successful with 3,322 projects folding.
Unusually, heavy wrong crypto winter, the fig of dormant tokens for the existent twelvemonth is importantly less than the anterior year, astatine 951.
Source: CoinGecko.com947 dormant crypto projects expected per year
As the bull marketplace was picking up gait successful 2021, much than 8,000 projects successful full were listed connected CoinGecko. However, currently, “nearly 40% person been deactivated and delisted” since then.
“This is 2.5 times higher than the magnitude of cryptocurrencies listed successful 2020 that failed, and 3.5 times higher than 2022 YTD.”
Explaining the important emergence successful dormant coins successful 2021, the level apportioned blasted connected “‘meme coin season” which was prevalent during the mania of past year.
At this time, galore projects sprung up with anonymous dev teams offering investors “little to nary value.” These projects often failed owed to being fly-by-night currency grabs with debased committedness from the devs.
Currently, determination are 13,130 coins listed connected CoinGecko, importantly much than the 8,000 successful 2021. Yet 2022 showed importantly less projects folding. This suggests the launching of meme coins is not arsenic pervasive this twelvemonth compared to the last.
However, it is worthy noting that CoinMarketCap presently lists a full of 21,903 tokens. As such, CoinGecko information does not springiness a implicit overview of the market.
CoinGecko labeled 2021 an “anomaly year.” Excluding 2021 data, i.e. for the information acceptable 2018, 2019, 2020, and 2022, an mean of 947 crypto projects dice per year.
The methodology used
To find whether a crypto token was dormant oregon deactivated, CoinGecko looked astatine whether the token:
- had zero trading enactment wrong the past 2 months.
- was revealed arsenic a scam oregon rug propulsion via quality oregon nonstop reports from verifiable sources.
- or the task had requested deactivation.
The second happens erstwhile the squad disbands, rebrands, shutters the project, oregon undergoes large token changes to the constituent the aged token becomes illiquid oregon dead.
The station Shady meme coins blamed for spike successful dormant crypto projects successful 2021 appeared archetypal connected CryptoSlate.
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