Jai Sahu
How Many Cryptocurrencies Have Failed?
More than half of all cryptocurrencies have met their demise. Out of the 24,000 cryptocurrencies listed on CoinGecko since 2014, 14,039 have ceased to exist.
The majority of these failed cryptocurrencies originated from projects launched during the 2020-2021 bull run. Specifically, 7,530 cryptocurrencies from that period have failed, accounting for 53.6% of all defunct cryptocurrencies on CoinGecko. During the previous bull run, over 11,000 cryptocurrencies were listed on CoinGecko, and approximately 70% of them have since shut down.
In comparison, 1,450 projects launched during the 2017-2018 bull run have also closed their doors. This results in a similar failure rate of about 70%, considering the over 3,000 cryptocurrencies listed during that time.
The surge in failed coins during the 2020-2021 period can be attributed to the ease of token deployment and the rise of memecoins. Many memecoin projects launch without a product, and a majority of them are abandoned shortly after.
A staggering 5,724 cryptocurrencies from 2021 have faced failure. Cryptocurrencies launched in 2021 have experienced the highest failure rate, with more than 70% of them listed on CoinGecko meeting their end. This makes it the worst year for project launches.
Following closely, cryptocurrencies listed in 2022 have seen 3,520 failures so far, at a rate of about 60%.
In 2023, 289 cryptocurrencies listed on CoinGecko met their end, representing a failure rate of less than 10%, with over 4,000 cryptocurrencies listed. This marks a significant decline compared to previous years.
Cryptocurrency Failures by Year of Launch:
The breakdown of cryptocurrency failures by the year of their launch is as follows:
The number of cryptocurrencies technically died since 2014 | Source: CoinGecko
Methodology:
This study examines the total number of coins and tokens, collectively referred to as ‘cryptocurrencies,’ that were once listed on CoinGecko and have since become inactive or ‘dead.’ These are categorized by the year they were listed, ranging from 2014 to 2023 year-to-date.
Cryptocurrencies may be deactivated and removed from CoinGecko under the following circumstances:
1. Cryptocurrencies show no trading activity within the last 30 days.
2. Projects are exposed as scams or rug pulls through credible news sources or direct reports to CoinGecko.
3. Projects request deactivation, such as when the team disbands, rebrands, shuts down the project, or undergoes significant token overhauls, rendering old tokens illiquid or defunct according to CoinGecko standards.