Sixty out of 100 of cryptocurrencies with top market share have not yet released a working product, according to new research from analysis firm Invest in Blockchain.
What’s shocking about this is the fact that these projects have raised perhaps millions of dollars in funding through ICOs, but have not produced anything for public use.
The study looked at the status and history of 100 top cryptocurrencies including giants such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, Stellar and Litecoin, and defined a ‘working product’ as one that is active, available to the public and can be used on a regular basis. This weeds out those cryptocurrencies that claim to having a working product without a ton of evidence.
The final result showed that just 40 of the 100 condidates met the criteria.
The report reads: “If you haven’t run into at least a handful of people who are cynical about the state of the blockchain industry and think it’s mostly scams and vaporware, well… you probably haven’t been into crypto for long. And the truth is, those cynics have a good point.”
Last month it was reported that more than half of new cryptocurrency projects don’t make it past their first year, with only 44.2 per cent of start-ups surviving 120 days after their ICOs. The average lifespan of these ventures is just 1.22 years.
“[These projects] came out very quickly, but die quickly as well,” said He Baohong, director of CAICT. “In this circumstance, governments globally are accelerating their efforts to establish unified standards in order to help blockchain projects to achieve real-life applications.”
In spite of this, the number of ICOs launched in 2018 has already far outstripped those launched in 2017, and the pace doesn’t seem to be slowing down anytime soon.