Over A Thousand Alternative Cryptocurrencies Have Failed This Year
Recent reports conclude that over a thousand different cryptocurrencies this year alone have failed, whereas Bitcoin has also experienced a fall of approximately 70% since its peak value in 2017.
Initially emerging from ICOs, projects spanning from scams to abandonware have failed in 2018 despite attempts to gain in value and circulate the digital market. Last year, companies managed to raise almost $4B dollars thanks to ICOs, with that number soaring to a whopping $11.9B in 2018 thus far.
Economical and crypto experts clarify that many of these newly emerging virtual currencies inevitably failed due to being linked to scam related activities. When these cryptocurrencies are publicly acknowledged as a scam, are abandoned, lacking in social activity, remain low in volume, or simply at a standstill due to lack of development, the digital tokens become what has termed as dead.
Although remaining among the more popular cryptocurrencies in the market today, Bitcoin has also experienced a significant decline in value- roughly 70% since reaching its record peak value of $20K dollars in 2017. Currently, the digital coin is stable hovering at a value worth of approximately $6,600 dollars.
International governments and giants among financial entities have attempted to reject and stray from the use of cryptos citing their lack of security, regulation, and flawed nature. In addition, virtual currency exchanges have experienced a significant rise in cyber hacks and long-term planned attacks.
These occurrences have a significant effect on the value of tokens such as Bitcoin, which saw a sudden fall in value once a crypto exchange in South Korea released official reports of being hacked.