The first coin presentations (ICOs) were the talk of the city last year, captivating the eyes and ears of global investors. However, DeadCoins reported that over 800 cryptocurrencies were lifeless, with many of these projects introducing business practices reminiscent of scams.
"DeadCoins" now lifeless over 800 cryptocurrencies
DeadCoins, a collection of cryptocurrencies "Hymns of Praise", now has a list of over 800 cryptocurrencies that have no promising outlook.
Even if it makes fun In these 800 projects, the problem persists. That is, the growing problem with questionable projects is trying to attract the attention of unsuspecting investors.
Take the example of World of Battles, an ICO project that should ring no bells. Although World of Battles was a new idea, it quickly came under the suspicion of experienced members of the Cryptocurrency community who pointed out the grievances the project exploited. Most obvious is the blatant use of the logo of another project, which modifies it in the least to outsmart the naive.
This project is among the more than 800 "dead coins" that fall into the category of ICO scams. Other reasons for "death" range from aborted projects to a SEC investigation and everything in between.
CryptoMeth and EzCoin, names of projects designed to cautious investors, also hit their decline. This left some wondering how these projects stayed afloat at all. Some have pointed to the credulity of some investors who were promised wealth and investment success.
Although the list above seems overwhelming, it is widely speculated that the DeadCoins list is far from complete. Some have even come to the conclusion that even the 1
Market Analysis: 80% of ICOs are Scams
An author at Bloomberg, Aaron Brown, gave his analysis of the current status of ICOs:
"There was obviously considerable fraud and hype in the ICO market seen that 80 percent of ICOs were fraudsters, and 10 percent lacked substance and failed shortly after they had raised money, and most of the remaining 10 percent are also likely to fail. "
It is argued that 2017 and 2018 are the" years The ICOs are "as retail investors empty their pockets for the" hottest "projects continuously. Despite the presence of promising crypto projects, many ICOs have been exposed as fraudulent and promoted unrealistic goals and returns.
According to data from the Satis Group, an ICO consulting and analytics firm, over 80% of ICOs with a market capitalization of $ 50 million and more are fraudulent. The 80 percent figure is in line with what the Bloomberg analyst has also seen, adding even more credibility to the extremely alarming statistics.
Another 11% of projects failed or died, not the most promising statistics for the ICO market.
That's the problem, the legitimate ICOs that propagate real use cases are overshadowed by the plethora of ICO disadvantages that do not have a real product or use case.
ICO scams are one of the main reasons regulators want to regulate industry, as fraudulent projects have attracted millions, if not billions, of dollars in investment. As the CEO of Blockchain said at an appearance on Bloomberg, the regulators focus mainly on consumer protection.
The ICO market is on thin ice, and the ICO scam "endemic" displaces all but a few bona fide projects.
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