{"id":10769,"date":"2024-02-16T17:52:26","date_gmt":"2024-02-16T15:52:26","guid":{"rendered":"https:\/\/forklog.com\/en\/alphaquest-reports-on-the-surge-of-dead-cryptocurrencies\/"},"modified":"2024-02-16T17:52:26","modified_gmt":"2024-02-16T15:52:26","slug":"alphaquest-reports-on-the-surge-of-dead-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/alphaquest-reports-on-the-surge-of-dead-cryptocurrencies\/","title":{"rendered":"AlphaQuest Reports on the Surge of ‘Dead’ Cryptocurrencies"},"content":{"rendered":"

The year 2023 has proven to be the most challenging for crypto projects in the latest four-year cycle, with developers abandoning 59.35% of tokens tracked on CoinMarketCap. This is according to research by AlphaQuest<\/a>.\u00a0<\/p>\n

\"\u0412
Percentage of ‘dead’ coins from 2020 to 2023. Data: AlphaQuest.<\/figcaption><\/figure>\n

High Mortality Rate<\/strong><\/h2>\n

Analysts examined over 12,000 projects, identifying ‘dead’ ones based on four criteria:\u00a0<\/p>\n

    \n
  • low liquidity\/trading volume \u2014 92.6%<\/span>;\u00a0<\/li>\n
  • non-functional website \u2014 50.9%;<\/li>\n
  • delisted from CoinMarketCap \u2014 47.6%;<\/li>\n
  • deleted X-account \u2014 35.6% (no updates on X for more than three months \u2014 26.9%).<\/li>\n<\/ul>\n

    Experts also highlighted instances of fraud where perpetrators acquired or accessed abandoned project accounts to promote scams.\u00a0<\/p>\n

    \n

    \u201cBy analyzing social media activity, investors can stay informed and exercise caution in the cryptocurrency world,\u201d AlphaQuest reminded.\u00a0<\/p>\n<\/blockquote>\n

    Market Filtering<\/strong><\/h2>\n

    Analysts note that 72% of crypto projects (3473 out of 4834) launched during the bull cycle of 2020-2021 also failed.\u00a0<\/p>\n

    Researchers pointed to significant negative impacts from major bankruptcies. Following the collapse of the Terra ecosystem, over 35% of coins ceased to exist. The FTX exchange crash took down another 32% of tokens.\u00a0<\/p>\n

    \n

    \u201cThis statistic highlights the susceptibility of crypto projects to market fluctuations and underscores the importance of risk management in this volatile sector,\u201d the researchers added.\u00a0<\/p>\n<\/blockquote>\n

    According to AlphaQuest, the average lifespan of startups in the digital asset industry is three years. This suggests that a typical project \u201ccan barely survive a four-year market cycle.\u201d<\/p>\n

    \"\u0412
    Lifespan of crypto projects. Data: AlphaQuest.\u00a0<\/figcaption><\/figure>\n

    Analysts report that only 22.4% of crypto projects last longer than the specified period. ‘Dead’ coins have an average lifespan of just 2.21 years.\u00a0<\/p>\n

    Affected Sectors<\/strong><\/h2>\n

    AlphaQuest identified several categories within the crypto industry where more than 50% of projects have ceased to exist:<\/p>\n

      \n
    • video and music \u2014 75%;\u00a0<\/li>\n
    • asset-backed stablecoins \u2014 75%;<\/li>\n
    • metaverses \u2014 51%.\u00a0<\/li>\n<\/ul>\n

      The most affected ecosystems were Cardano and Terra, each with 74% ‘dead’ projects. Significant losses were also seen in Celo, Harmony, Near, Zilliqa, and Moonriver.\u00a0<\/p>\n

      Additionally, half of the startups backed by the bankrupt hedge fund Three Arrows Capital failed. Among other venture firms with more than 50% of crypto projects in their portfolio shutting down are Paradigm, DWF Labs, Polychain Capital, Andreessen Horowitz, Animoca Brands, Binance Labs, and Multicoin Capital.\u00a0<\/p>\n

      Earlier, CoinGecko specialists calculated that since the emergence of the GameFi<\/span> segment, about 2127 out of 2817 projects in this direction have failed.<\/p>\n

      In 2023, venture investments in the digital asset industry fell by 68% to $10.7 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The year 2023 has proven to be the most challenging for crypto projects in the latest four-year cycle, with developers abandoning 59.35% of tokens tracked on CoinMarketCap. This is according to research by AlphaQuest.\u00a0 Percentage of ‘dead’ coins from 2020 to 2023. Data: AlphaQuest. High Mortality Rate Analysts examined over 12,000 projects, identifying ‘dead’ ones […]<\/p>\n","protected":false},"author":1,"featured_media":10768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1150,167,596],"class_list":["post-10769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-news-plus","tag-research","tag-tokens"],"aioseo_notices":[],"amp_enabled":true,"views":"61","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=10769"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/10768"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=10769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=10769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=10769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}