A new research by CoinGecko has showed that, number of cryptocurrencies that have failed to live up to the expectation since going live amid the prevailing 2022 bear market, as of early November, 2018, there are 951 cryptocurrencies listed on CoinGecko which have been declared ‘dead’ or ‘failed’, according to a research paper.
The study looked at cryptocurrencies that may have been off the site due to a lack of trading activities within the last two months, also tokens were deemed scammers or requests for deletion.
According to the study, in this year 2022, so far 951 cryptocurrencies have failed and most of them are MEME tokens or some scams. This figure of dead coins represents a significant drop from last year 2021 value of 3,322. Notably, over the last nine years, 2021 registered the highest number of dead coins amid the prevailing bull market.
The research pointed out that the high number of dead coins in 2021 can be tied to the influx of meme coins into the market. Notably, most meme coins lacked significant value with anonymous developers alongside needing more significant commitment to developing them. Following the success of meme tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB), most entities attempted to replicate the success, what’s more interesting the researchers noted that excluding the 2021 growth, the number of dead cryptos averaged 947 between 2018 to 2022.
Despite the 2022 bear market, the research indicated that more cryptocurrencies emerged in the crypto market hitting around 22,000 cryptocurrencies according to CoinMarketCap.
Overall, crypto proponents have maintained that as the sector matures, the number of dead coins should increase in time, because the industry matures, assets with no utility, or based on speculation are destined to be wiped out from the crypto market. In my opinion all MEME tokens will be wiped out in future, it is just matter of time and as more investors get educated the interest for speculative digital tokens (meme tokens) will be lower.
Investing in cryptocurrencies demands, knowledge and fundamental analysis, in order to make the right “bet” on cryptocurrencies that have real use-case, utility and technology. Education is the key, before you start investing in crypto.