According to a new report, 72% of cryptocurrency projects launched during the previous bull season died. 93% of these projects experienced low transaction volume and liquidity problems, indicating decreased interest from investors.
As Webtekno, we attach great importance to blockchain technology and believe that cryptocurrencies will become a part of the financial sector in one way or another. However, in almost every news we hear about the rise of cryptocurrencies, you should not get caught up in the fear and you should not be discouraged by such things as leveraged transactions without having sufficient financial literacy. Stay away from high risk transactions We warn you that it is necessary.
With Bitcoin reaching its all-time high again, cryptocurrencies started to occupy the agenda again. In this news, we will talk about a report that reminds you why you should stay away from the “Sell the house and car and press the coin” advice. Because, according to the report prepared by Alphaquest and Storible together, it has been released since 2020. 72% of altcoins have disappeared. In other words, while some cryptocurrency projects increased their value hundreds or even thousands of times, the majority were completely eliminated from the market.
93% of projects launched in the previous bull season had low transaction volume and liquidity problems
Alphaquest during research more than 12,000 He states that he has carried out a comprehensive analysis of the cryptocurrency project. The “extinction” criteria for cryptocurrency projects were determined as “low transaction volume and liquidity”, “inactive or deleted X accounts”, “closed websites” and “removal from coinmarketcap”. Number of cryptocurrency projects that meet these criteria 8,854 It was announced as.
Cryptocurrency projects considered “dead” 93%, low transaction volume and had liquidity problems. This shows that the interest of cryptocurrency investors in these projects is decreasing. In addition, the websites of almost half of these projects were closed and the cryptocurrency was removed from the coinmarketcap list.
In summary; Cryptocurrency projects launched “enthusiastically” during the 2020-21 bull season More than 2/3 of them were not seen in the future and the projects literally died.