One of the signs of a highly active market is, ironically, the significant number of failed projects. This is now true of the cryptocurrency market, which has over 800 dead coins, according to an analysis of market data provided by Dead Coins.
Dead Coins takes a look at coins across the market and considers one “dead” if it either suffered an irrecoverable hack, it was a scam, it stopped all its activity, or it was simply a joke coin. It takes a lot of endurance for a coin to survive in this competitive market.
Bitcoin, for example, has been through several changes and major hacks. When the Mt.
Gox incident happened in 2014, the exchange reported losses of over 850,000 BTC, accounting for over 7% of the entire supply at the time. This created a significant loss of trust in the cryptocurrency market but failed to damage investor trust in Bitcoin itself.
The key here is that Bitcoin remained resilient because of the rock-solid reputation of its blockchain. It is extraordinarily difficult to reproduce that in a brand new coin that has yet to prove itself. Read more from investing.com…
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