Based on a recent TechCrunch report, over a thousand crypto projects have now been buried as of last quarter of June 2018. Such a claim was taken from the latest research conducted by two reliable websites such as Coinopsy and DeadCoins.
Coinopsy is known for conducting daily reviews of different cryptocurrencies. This involves digital currencies that are considered “dead.” An online token is regarded “dead” if it falls under one or more of the following categories. It could either be it is no longer being used or abandoned, with reported scam issues, inactive website, no nodes, wallet problems, no updates on social media, poor turnover or declining volume or some developers have quit the project.
Under Coinopsy’s records, there are about 247 reported “dead” coins as of this writing. One of the most notorious in the list was Bitconnect, which has gone down in January 2018. Coinopsy noted this coin as “the most successful ponzi-scheme in crypto so far.”
Meanwhile, DeadCoins has a long list of 830 crypto items that are also known as “dead” cryptocurrencies. One of the most prominent is the recent Titanium Blockchain Infrastructure Services initial coin offering. This was pulled out by the U.S. Securities and Exchange Commission (SEC) after the discovery of fraudulent practices.
SEC’s press release noted that Titanium has attained $21 million from the combined American and global investors. In a statement, the SEC stressed its warning to the investors about ICOs. It noted that people should take precaution in this extremely risky type of investment.
“Having filed multiple cases involving allegedly fraudulent ICOs, we again encourage investors to be especially cautious when considering these as investments.”
In a related report, Cointelegraph said the ICO volume has attained $13.7 billion in 2018 in total or twice the market value compared to the previous year’s record. TechCrunch added the increasing scams and dead ICOs were cited to reach $1 billion as of last year.
The previous week, Nasdaq CEO Adena Friedman has warned the retail investors on the “serious risks” of participating in ICOs. She claimed crypto projects have “almost no oversight” so it is very risky to invest in them.
In early June this year, crypto evangelist John McAfee made a statement that he will no longer engage in ICOs as a result of the potential threats as cited by SEC.