With bitcoin stuck in a bear market, hundreds of other crypto projects are now considered worthless

Hundreds of crypto projects have sunk to the bottom. (Photo by Jens Schlueter/Getty Images)
  • Website data shows that at least 800 ICO projects are now worth zero.
  • Despite the ongoing crypto bear market, plenty of new ICOs still popped up in the first half of 2018.

Crypto-mania in 2017 spawned a deluge of new initial coin offerings (ICOs), but new research suggests that the wheels have already fallen off for hundreds of ICO projects.

The website deadcoins.com currently lists 820 digital coins which are either dead, got hacked or were just outright scams to begin with. Another site, coinopsy.com, also has details on 255 coins which have joined the crypto graveyard.

Coinopsy’s list includes the controversial Bitconnect coin, which saw its value plummet in January before the project was shut down after receiving cease & desist letters from US regulators.

And among the deceased projects on deadcoins.com was Titanium Blockchain Infrastructure Services (TBIS), which allegedly raised millions through an ICO before its founder was charged with fraud in May this year.

The data indicates that the crypto space has been a hotbed for scams and frauds since it exploded in popularity last year.

They hype has cooled off in the first half of this year as prices for bitcoin — the world’s biggest cryptocurrency — have fallen by around 70%.

And amid significant price corrections for major coin projects, more dodgy ICOs have fallen by the wayside — a process exacerbated by the fact that less robust ICO propositions are now firmly in the sights of regulators.

Those measures have extended to Australia, with corporate regulator ASIC introducing new measures against domestic ICOs in order to protect investors.

Despite that, a report by global accounting firm PWC showed that more than 500 ICOs have been launched in the first half of 2018, with a total volume of $US13.7 billion — almost double the $US7 billion that was recorded for the whole of 2017.

The report made mention of two big projects — messaging service Telegram and and blockchain platform EOS — which collectively claimed to raise around $US6 billion this year.

Amid the ongoing crypto bear market, prices for bitcoin managed to find support over the weekend after briefly dipping below $US5,800 on Friday night — the lowest level since late last year.

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