A new report claims that over one thousand initial coin offering (ICO) projects have “already died” in 2018.
Published in TechCrunch on June 29, the report cites data gathered by Coinopsy and DeadCoins, two websites that track failed and failing ICO projects.
Coinopsy defines a “dead” token project as showing one of the following conditions: “abandoned, scammed, website dead, no nodes, wallet issues, no social updates, low volume or developers have walked away from the project.” The website listed 260 dead coins as of July 2.
DeadCoins, a “curated list of cryptocurrencies forgotten by this world,” identified 829 ICO projects that are either deceased, hacked, scams, or parodies as of July 2.
Many of the projects listed as scams by DeadCoins have been the subjects of investigation and enforcement action by the US Securities and Exchange Commission (SEC). The SEC stepped up its role in policing the crypto space in 2018, freezing funds raised by ICOs, arresting ICO founders, and even launching a fake ICO to warn investors of the dangers of scammers.
According to the TechCrunch report, failed ICOs raised over $1 billion in 2017.