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Initial coin offerings (ICOs) were the subject of discussion in the city last year, drawing the eyes and ears of investors around the world. However, DeadCoins has reported that more than 800 crypto-currencies are now lifeless, and many of these projects use business practices that are reminiscent of scams.
DeadCoins says more than 800 Cryptocurrencies are now lifeless
DeadCoins, a collection of 'eulogies & # 39; cryptocurrency, now has a list of more than 800 cryptocurrencies that lack promising prospects.
these 800 projects, the problem remains. This is the growing problem of questionable projects that are trying to attract the attention of unsuspecting investors.
Let's take the example of World of Battles, an ICO project that should not sound the death knell. Although it is an innovative idea, World of Battles quickly became suspect by veteran members of the cryptocurrency community, who pointed out the abusive practices used by the project. The most obvious is the blatant use of the logo of another project, modifying it as little as possible to deceive the naive.
This project is one of more than 800 "dead parts", falling into the category of ICO scams. Other reasons for "death" range from abandoned projects to an SEC investigation, and everything in between.
CryptoMeth and EzCoin, names of projects that should shake cautious investors, also met their demise. This left wondering how these projects stayed afloat. Some have feared up to the credulity of some investors, who have been promised wealth and success of investment.
Although the above list already seems overwhelming, it is widely assumed that the DeadCoins list is far from complete. Some even went so far as to say that even the 1,500 crypto-currencies, mostly composed of ICO, on CoinMarketCap should not be exempt from suspicion.
Market Analysis: 80% of OICs are Fraud
A Bloomberg author, Aaron Brown, gave his analysis of the current state of ICOs, writing:
"There was a fraud and a hype market.I saw 80 percent of the ICOs were frauds, and 10 percent lacked substance and failed shortly after fundraising.Most of the remaining 10% will likely fail too. "
It is argued that 2017 and 2018 are the" ICO years "because retail investors have continually emptied their pockets for the" hottest "projects. Despite the presence of promising crypto projects, many ICOs have been exposed as fraudulent, promoting unrealistic targets and returns.
According to data from Satis Group, an ICO consulting and analysis firm, more 80% of ICOs with a market cap of $ 50 million and over The figure of 80% corresponds to what the Bloomberg analyst also saw, bringing even more credibility to the extremely alarming statistics.
11% of the projects failed or remained silent, which is not the most promising statistic for the ICO market.
That's the question, the legitimate ICOs, those who encourage use cases in the real world are eclipsed by the multitude of ICO disadvantages that have no real product or use case.
ICO scams are one of the main reasons why regulators want to regulate the industry because fraudulent projects have attracted millions or even billions of dollars in investments. As the CEO of Blockchain said during an appearance on Bloomberg, regulators are focusing primarily on consumer protection.
The OIC market is on the ice, with the OIC scam being "endemic", with the exception of a few projects in good faith.
Featured image from Shutterstock.
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