CoinRivet published a report on January 9, 2020 based on data collected from a website called DeadCoins. Key findings from the report include the fact that over 500 cryptocurrency projects had failed in 2019, claiming “the majority of which were scams”.
The report continues to compare this statistic to previous years, maintaining that “of the 1,840 failed cryptocurrency projects since 2017, the majority were [also] outright scams”.
“115 folded in January, with 48 collapsing in February and a further 120 in March, accounting for more than half of the total failures of the year.
An alarming rate, you might say. However, it was still a 20% decrease from 2018…
In January, there were 151 published ICOs, while December closed with just 30.”CoinRivet
DeadCoins is a curated data repository pertaining to records of cryptocurrencies and ICOs which have otherwise – for all intents and purposes – been “forgotten by this world” as well as indicating “more”.
Furthermore, CoinJanitor and Deadcoins.com established a relationship to help enhance community-led efforts.
It describes itself as:
“a community site or forum intended for online discussions. On the DeadCoin Forum, the contributors can post to the best of their knowledge information about a dead or a dying coin…
“The content of DeadCoins is user-generated and DeadCoins plays a neutral role in this process.
“DeadCoins team does not approve, reject or endorse in any way, any of the user posted information.
“DeadCoins does not receive any remuneration for allowing negative or positive posts and information over any particular coin.”DeadCoins.com
As CoinRivet reports: a majority of the failed tokens that can be read about on Dead Coins have turned out to have been scams. This is supported by a large volume of evidence, as reported on by the likes of TheNextWeb, which published an article with the headline ‘Alleged head of $3.5M crypto mining scam bought stake in nightclub’ on January 10, 2019 – referring to Donald G. Blakstad, the accused.
A couple of days earlier, on January 8, Express.co.uk ran the story ‘Cryptocurrency latest: Brits warned over potential crypto scam’. It reported on how the UK’s Financial Conduct Authority had issued a statement regarding a website and company named ‘Pro-options’ which claimed to offer ‘profitable investment in Bitcoin’.
The authority warned citizens that the operation “may be an investment scam” then listed suspect factors such as spelling mistakes on the website, in addition to likely fraudulent testimonials from companies given names which are clearly references to The Terminator (‘Skynet’) and Spider-Man (OsCorp).
“Bitcoin has tumbled almost 50% from its 2019 peak in late June, when Chinese authorities arrested multiple suspects in the pyramid scheme that promised returns as high as 600% and guaranteed that investors would be rewarded for inviting new members.
Since that time, market observers have often pointed to possible sales tied to PlusToken suspects not in custody as one of the many reasons for price declines…
Chainalysis estimates that PlusToken conspirators have sold about 25,000 Bitcoins and another 20,000 Bitcoins are spread out across more than 8,700 anonymous crypto addresses. Additional coins such as Ether were also used to bilk investors.”Chainalysis
Back in December 16, 2019 Chainalysis published a report on the Chinese cryptocurrency scam ‘PlusToken’ which had allegedly promised its investors returns of “as much as 600%”. This was a $2 billion value token dump by PlusToken when cashing out.