Market fall leaves over 800 cryptocurrencies ‘dead’
The upsurge in activity in new cryptocurrency projects over the past 18 months has been accompanied by a rising list of casualties according to the website Dead Coins, which lists over 800 digital tokens that it considers as effectively dead.
It bases its judgment on the projects listed being short-term scams, a joke or for a product that had lofty ambitions but failed to meet their goals or promises to investors, meaning that the coins trade at less than one cent and are effectively worthless.
“When you couple this with the competition of the newest and most trusted initial coin offerings (ICOs) currently competing for market space, it is obvious that older coins that have underperformed are now seen as ‘dead’ or ‘dying’ and are now trading well below 1-cent,” comments blogger Alan Wass on cryptodisrupt.com.
As analysts note, even bitcoin, the market leader by market capitalisation, has fallen by around 70% since its record high close to $20,000 late last year, adding to bearish sentiment around cryptocurrencies. The sharp falls have drawn comparisons with a similar decline in the Nasaq back in 2000 and the dotcom ‘boom and bust’ of that period.