【LongHash Column】How many coins died in 2019?

In 2019, after a year-long bear market, a large number of projects slowly faded from view for various reasons. By scraping data from DeadCoins.com, we discovered some interesting phenomena. At least according to the aforementioned website, the number of blockchain projects that died in 2019 is significantly fewer than in 2018.

DeadCoins.com has recorded a total of 1,840 cryptocurrency projects that have died since September 2017. In 2019, there were 518 deceased projects, a 20% decrease from the 647 projects in 2018.

How did these projects meet their demise? DeadCoins.com categorizes them into four types: Deceased, Hack, Scam, and Parody. Among these, scams make up the majority, with 58% in 2019 and 55% in 2018 falling into the exit scam category. Projects that terminated on their own accounted for 35% in 2019 and 38% in 2018, while a small portion were victims of hacks or copied from other projects.

The distribution of project deaths in 2018 and 2019 remained relatively similar. For reasons behind the demise of projects, a previous in-depth analysis has been conducted.

In 2019, the first quarter saw the highest number of project deaths, with 115, 48, and 120 projects perishing in January, February, and March respectively, accounting for over half of the total deaths for the year. The second quarter saw a total of 83 projects dying. This discrepancy may be attributed to broader market forces, as during the entire second quarter, the prices of Bitcoin and other cryptocurrencies were steadily rising.

According to ChainTower's statistics on new projects, there were 4,292 blockchain projects added in 2017, 13,168 in 2018, and 2,160 as of May 2019. The majority of scam exit projects have a lifespan of less than a year, while terminated projects generally last between 1-3 years. According to ICObench, starting from March 2019, the number of ICO projects significantly decreased, and the number of IEO projects is much lower than that of ICOs.

Deloitte's 2019 Global Blockchain Survey indicates that more mainstream enterprise-grade blockchain projects emerged in 2019, with overall project quality expected to be higher than in 2018.

What lies ahead for the future? Of course, it all depends on the market. However, due to the large number of projects in 2018, with many being ICO projects, the number of projects dying in the next 1-2 years is not expected to be significantly lower than in 2018 and 2019. It is anticipated that after 2022, the number of projects dying relative to the number of new projects will improve compared to these two years.

This article is from our partner, LONGHASH. Source

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