Hyperinflation can occur when enthusiasm oversteps reality. Is this what occured with the crypto singularity of December, 2017? Over 800 cryptocurrencies are now dead as Bitcoin is 70 percent off its record high.
46% of last year’s ICOs have already failed. Bitcoin losing much of its value has meant many minor altcoins have seen their value approach extinction levels. Some Millennial crypto investors (in the range of 25 to 35) are upset and pulling out of Bitcoin on places such as Coinbase. The end of HODL for some investors, that seemed impossible just a few months ago.
But what of the shitcoins, what did we truly expect? Over 800 cryptocurrencies are now dead and worth less than one cent. That’s not me guessing, that’s CNBC.
Bitcoin has fallen roughly 70 percent since its record high near $20,000 last year, complicating the life of blockchain startups and altcoins.
Their lives was further complicated by a Facebook led ban on Crypto Ads specifically targeting ICOs. In turn, Facebook decided to create its own Blockchain division. Big coincidence, right?
New altcoins are still forming on Ethereum and in other places such as Waves DEX. But how do they move forward in such a climate? Many of these blockchain startups won’t have a path forward now, with a bearish mood on ICOs as bigger players seek to monopolize the future of blockchain, for the establishment.
Meanwhile companies such as Block.One, Coinbase and Ripple feel more centralized, than decentralized and more just like regular businesses who are part of a movement to usurp the space. The blockchain movement is mostly being spear-headed by young software developers who believe that the world can do better. There is a lot of pretending going and decentralization propaganda . If you are a private business and pretend to be something you are not, is that not the worst fraud?
ICOs come and go, they burn through investors who do not do their due diligence. The ideological hooks and community and consensus rhetoric is like a virus. The greater the artificial hype, the more desperate the naming. TRON (TRX) calling for an “independence day” or EOS thinking it’s the future of decentralization, is in a way, appalling.
Over 800 cryptocurrencies are now dead and worth less than one cent. That’s about half of the 1,600+ altcoins that have glimmered into temporary existence. ICOs fail faster than your regular startup, volatility is the heat-death of crypto hype. However, each year the adoption rate of blockchain accelerates, the smart contract and dApp platform candidates increase. There is a weeding out process in any boom and bust; Bitcoin bubble or blockchain revolution, both and all possibilities collide simultaneously.
When young Millennials investors are looking for “pump and dump” profits, could we have expected any different? In an ICO as you know, the investor doesn’t get an equity stake in the company, but the cryptocurrency that they buy can be used on the company’s product. Supposedly and if, the project lasts. That’s highly speculative and the failure rate is worse than a technology startup (where early found funding has been disappearing for years). People usually buy into an ICO because the coins are cheap and could offer big returns in the future. If ICOs were one of the key drivers in the crypto singularity, their regulation by the SEC and banning by Silicon Valley tech companies are one of the key reasons we have seen a Bitcoin price correction.
If Ethereum itself was spared, the altcoin purge has led to greater skepticism by the casual investor. The banks warned of the bubble, and then the authorities created it. It didn’t take much to burst the Bitcoin bubble, whatever happens now — what happens to all of these minor cryptocurrencies? How many of them are legitimate startups with a product or a chance to disrupt their space?
The popular media will tell you that crypto is for criminals, but these companies from all over the world, raised $3.8 billion via ICOs in 2017, but in 2018 so far, this number has already shot up to $11.9 billion, according to CoinSchedule, a website that tracks the market. That’s EOS and Telegram to some extent. Bitcoin’s price still calls the shots; the market could turn upwards in the 2nd half of 2018.
We’ll soon live in a world where there are as many as 5,000 cryptocurrencies. A world where tech companies and mainstream companies are creating blockchain patents and seeking to disrupt the startups and platforms that made this all possible to begin with. Facebook doesn’t want the likes of Coinbase or Ethereum to steal their thunder. The Millennial casual investor, they could come back as well.
Dead Coins is a website that lists all the cryptocurrencies that fall into those categories. Good luck becoming a cryptocurrency or dApp platform hit, the competition is fierce and getting scarier each month. Good luck being a stablecoin, more than a shitcoin, and attracting developers and mainstream investors to your ecosystem. This is a Bitcoin game, and blockchain apps and decentralized exchanges are immature products.