The Alarming Rate of Cryptocurrency Failures
Over 50% of cryptocurrencies have ceased to exist. Since 2014, 14,039 out of 24,000+ cryptocurrencies listed on CoinGecko have failed.
Key Insights:
- Most failed projects launched during the 2020–2021 bull market, with 7,530 cryptocurrencies (53.6% of total failures) collapsing.
- Around 70% of the 11,000+ cryptocurrencies listed during that period were later delisted.
In comparison, the 2017–2018 bull market saw 1,450 projects fail (70% failure rate) out of 3,000+ listed cryptocurrencies.
Why Did So Many 2020–2021 Tokens Fail?
- Ease of deployment: Lower technical barriers led to excessive token creation.
- Meme coin trend: Many projects lacked viable products and were abandoned shortly after launch.
Cryptocurrency Failures by Year
2021: The Worst Year for Crypto Projects
- 5,724 cryptocurrencies failed (70% failure rate).
- Market saturation and speculative hype contributed to high collapse rates.
2022: Continued Turmoil
- 3,520 cryptocurrencies failed (~60% failure rate).
2023: A Notable Improvement
- Only 289 out of 4,000+ listed cryptocurrencies failed (<10% failure rate).
👉 Discover the latest surviving cryptocurrencies
FAQs
1. What percentage of cryptocurrencies fail?
Over 50% of cryptocurrencies have failed since 2014, with peaks during bull markets.
2. Why did 2021 have the highest failure rate?
A combination of easy token deployment and trend-driven projects (e.g., meme coins) led to unsustainable growth.
3. Are newer cryptocurrencies more reliable?
Data suggests 2023 projects had a <10% failure rate, indicating possible market maturity.
4. What happens to failed cryptocurrencies?
Most are delisted from exchanges or abandoned by developers, rendering them worthless.
👉 Learn how to spot sustainable crypto projects
Final Thoughts
The crypto market’s high failure rate underscores the importance of due diligence. While trends like meme coins dominate headlines, long-term success depends on utility, team credibility, and market demand.