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Thousands of cryptocurrency projects are already dead

Two sites actively cataloging failed cryptographic projects, Coinopsy and DeadCoins, have found that more than 1,000 projects have failed so far in 2018. Projects range from true abandonware to pure scams and include BRIG, a scam. of two "brothers" "Jack and Jay Brig, and Titanium, a project that ended with an SEC investigation.

Obviously, any new set of institutions must create its own sets of rules and that is exactly what is happening in the blockchain world. But faced with the possibility of a massive symbolic fundraising, bigger problems arise. While everyone expects startups to fail, the huge amount of money flooding these projects is a big problem. When a start-up has too much fuel too quickly, the resulting conflagration ends up consuming both the company and the founders and there is little help for investors.

These conflagrations occur everywhere are a global phenomenon. Scam and ICO dead raised $ 1 billion in 2017 with 297 suspicious startups in the mix.

There are questionable organizations dedicated to "repairing" broken ICOs, including Cape Town's CoinJanitor, but the fact that most of these organizations are not auspicious does not bode well for the future. industry.

ICO-funded startups are using multi-level marketing tactics to grow their business. Instead, they should take a page from the Kickstarter framework and Indiegogo. These crowdfunding platforms have made trust an art. By creating guarantees that define the team, the project, the risks and the future of the idea, you can easily create businesses even without a lot of funding. Unfortunately, the price blockages and scams that the current OIC market uses to incite greed rather than rational thought are doing more harm to the industry than ever before. help.

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The bottom line? Invest only what you can afford to lose and wait until any token you invest in fails. In the end, the best you can hope for is to be pleasantly surprised when that is not the case. Otherwise, you are in a world of disappointment.