According to CoinGecko more than 50% of Cryptocurrencies are dead!

Over the past ten years, cryptocurrencies, also known as digital assets functioning on decentralized networks, have experienced significant growth. According to a recent report from CoinGecko, a leading crypto ranking platform, they've recorded the listing of over 24,000 cryptocurrencies since 2014. It's worth noting that this figure might actually underestimate the total number of cryptocurrencies ever introduced.

Yet not all of these digital currencies have managed to survive or thrive within the volatile and fiercely competitive crypto landscape. CoinGecko's latest report suggests that more than half of the cryptocurrencies listed over the past decade could now be classified as inactive or "dead."

The report defines "dead" or "failed" coins as those cryptocurrencies that were once listed on CoinGecko but have since become inactive due to various factors, including a lack of trading activity within the past 30 days. This category encompasses projects that have been identified as fraudulent or involved in rug pulls. Additionally, projects may voluntarily request deactivation, such as in cases where the team disbands, rebrands, or terminates the project. Tokens that have become illiquid or obsolete over time also fall under this classification.

What is CoinGecko?

CoinGecko stands out as a premier cryptocurrency data aggregator, playing a pivotal role in the dynamic landscape of digital assets. Since its inception in 2014, CoinGecko has emerged as an essential tool by providing a comprehensive overview of the cryptocurrency market. With its extensive tracking of thousands of coins and tokens across diverse blockchains, CoinGecko goes beyond merely presenting price data.

What distinguishes CoinGecko is its dedication to delivering a more nuanced perspective. Through its innovative Gecko Score methodology, CoinGecko evaluates a cryptocurrency's robustness by considering factors such as community engagement, developer activity, and liquidity. This holistic approach empowers users with insights into a project's vitality beyond its market valuation, fostering a deeper understanding of the cryptocurrency ecosystem.

How Many Cryptocurrencies are extinct exactly?

More than half of all cryptocurrencies have ceased to exist. Out of the 24,000 cryptocurrencies cataloged on CoinGecko since 2014, a staggering 14,039 have met their demise.

The majority of these defunct cryptocurrencies emerged from projects initiated during the bullish period of 2020 to 2021. Specifically, 7,530 cryptocurrencies launched during this time frame have perished, constituting 53.6% of all inactive cryptocurrencies on CoinGecko. In the preceding bull market, over 11,000 cryptocurrencies were introduced, with approximately 70% of them folding since.

Similarly, during the 2017 to 2018 bull run, 1,450 projects have shuttered out of the 3,000 cryptocurrencies listed, resulting in a comparable failure rate of around 70%.

The notable surge in failed coins during the 2020 to 2021 period can be attributed to the accessibility of token deployment and the popularity surge of meme coins. However, a considerable number of memecoin ventures launch without tangible products, leading to abandonment shortly after inception.

Dead Cryptocurrencies are from the 2021 Bull Run

In the cryptocurrency realm, the year 2021 stands out as particularly bleak, witnessing the demise of 5,724 cryptocurrencies as of January 2024. This equates to over 70% of the cryptocurrencies introduced on CoinGecko during that year, marking it as the most challenging period for project launches within the industry.

Following closely behind, cryptocurrencies launched in 2022 experienced significant setbacks, with 3,520 having succumbed to failure thus far, representing a failure rate of approximately 60%.

In stark contrast, the year 2023 saw a notable decline in failure rates, with only 289 out of over 4,000 listed cryptocurrencies meeting their end. This reflects a failure rate of less than 10%, signaling a potential shift towards more sustainable and resilient projects in the cryptocurrency space.

• Year of Launch – Number of Dead Cryptocurrency

2014 – 37

2015 – 27

2016 – 32

2017 – 346

2018 – 1104

2019 – 1154

2020 – 1806

2021 – 5724

2022 – 3520

2023 – 289

How are Cryptocurrencies deactivated or delisted from CoinGecko?

• Cryptocurrencies that exhibit no trading activity within the preceding 30 days are deemed inactive.
  
  
• The identification of projects as scams or rug pulls is typically established through reputable news sources or direct reports received by CoinGecko from credible and verifiable channels.
  
  
• Projects may request deactivation for various reasons, including team disbandment, rebranding, project termination, or significant token overhauls resulting in old tokens becoming illiquid or obsolete, as per CoinGecko's standards.

What are some famous Defunct Cryptocurrencies?

• BitConnect (BCC) – Cryptocurrency, which was launched back in 2016, amassed $2.5 Billion in Market Cap during its lifetime. In December 2017 Coin reached its ATH with $471 but in the end, we found out that it was a Ponzi Scheme.
  
  
• FTX Token (FTT) – The Native token of FTX Crypto Exchange FTX Token (FTT) entered circulation in 2019 and had huge popularity among traders. But on 11 November 2022, the Company had filed for bankruptcy and the token lost its value.
  
  
• Alubala (AAA) – Cryptocurrency was originally created on Ethereum Blockchain and had a circulation of 400 000 000 coins, but today due to its team being dismantled, the crypto now has 0 circulation supply.

Remember, Cryptal is listed on CoinGecko?

Cryptal, the leading cryptocurrency exchange from Georgia, has forged a significant partnership with CoinGecko, a globally renowned platform. This historic collaboration not only positions Cryptal as the first and sole Georgian company to be featured and actively engaged in trading on CoinGecko.com but also underscores the broader implications of this alliance.

Beyond the immediate advantages for Cryptal, such as gaining visibility on the esteemed CoinGecko platform, this partnership symbolizes a milestone in the integration of Georgian enterprises into the global cryptocurrency landscape.