Since the emergence of Bitcoin in 2008, the number of alternative cryptocurrencies has grown significantly. According to CoinMarketCap, there are currently close to 9,300 cryptocurrencies in circulation, but research from CoinGecko reveals that over the past nine years, 7,368 cryptocurrencies have failed.
Many of these cryptocurrencies, which have been introduced over the years with the development of blockchain technology, have been abandoned by both developers and investors. While CoinMarketCap lists 9,295 active cryptocurrencies, CoinGecko’s research shows that 7,368 cryptocurrencies have been abandoned and classified as “dead” since 2014.
Kutluhan Akçın, the Turkey Operations and Business Development Director at Gate.io, shared his thoughts on the matter, saying, “The expansion of the ecosystem, the development of new technologies, and the possibility of creating a new cryptocurrency infrastructure on the blockchain have allowed for rapid growth in the market. However, a significant portion of the cryptocurrencies developed over time have also been abandoned.”
Thousands of Cryptocurrencies Fail Annually
According to research conducted by cryptocurrency data aggregator CoinGecko on cryptocurrencies abandoned from 2014 to 2022, an average of 947 cryptocurrencies failed each year during this nine-year period. This analysis was based on cryptocurrencies listed on the platform that were subsequently delisted or deactivated.
Kutluhan Akçın emphasized the importance of platforms like CoinGecko in understanding the market, stating, “For example, cryptocurrencies that are not involved in any trading activity within a two-month period can be delisted. On the other hand, it becomes evident over time that some cryptocurrency projects were created for fraudulent or deceptive purposes, leading to them being referred to as ‘dead’ cryptocurrencies. Criteria also include the development teams maintaining communication with their communities, continuing development activities, and announcing innovations.”
The Record Year for Dead Cryptocurrencies: 2021
Kutluhan Akçın noted that the recent bull market, which began in November 2020, is characterized by increased investor interest and risk appetite, resulting in higher trading volumes in the market. During such periods, developers can quickly introduce new projects. In 2021, for instance, more than 8,000 cryptocurrencies were listed. However, during the same period, approximately 40% of these projects were disabled, delisted from CoinGecko’s listings, or otherwise ceased to operate. With over 3,300 cryptocurrencies delisted, 2021 was labeled as the record year for “dead” cryptocurrencies.
“We Conduct Rigorous Listing Processes”
Gate.io has been operating since 2013 with the motto “the gateway to cryptocurrency” and has become a preferred platform for hundreds of thousands of cryptocurrency investors in dozens of countries. Kutluhan Akçın, the Turkey Operations and Business Development Director at Gate.io, concluded, “As one of the world’s top 10 cryptocurrency exchanges based on transaction volume and user trust, according to independent cryptocurrency data platforms, Gate.io offers trading for more than 1,700 cryptocurrencies on our platform. Developers who wish to list their projects on Gate.io Turkey are required to complete a comprehensive form, providing information about their project, team, and partners. After the evaluation process, the Gate.io Turkey team initiates communication with developers. New cryptocurrencies can be listed on Gate.io Turkey following a meticulous evaluation process. We follow the same process in our program called ‘Startup,’ which facilitates the reach of new blockchain projects to a wider audience. This way, we provide our users with cryptocurrencies that are built on a solid foundation and inspire confidence.”