Inactive or Deactivated? CoinGecko's Research Exposes the Cryptocurrency Cemeteries
In a recent news article, the Coinmooner team wants to share information from CoinGecko, a global leader among independent cryptocurrency data aggregators. This giant monitors over 12,000 assets and more than 900 exchanges worldwide. From 2014 to 2023, CoinGecko gathered information and analyzed the fate of cryptocurrencies listed on their platform.
The research revealed that over half of all cryptocurrencies listed on CoinGecko have ceased to exist. Particularly noteworthy is that during the bull market period from 2020 to 2021, 53.6% of cryptocurrencies vanished. Of the projects launched in 2021, more than 70% met with failure.
The analysis also identified a high percentage of unsuccessful meme coin projects, often launched without a real product and subsequently neglected after a short period. Overall, the study provides information on the yearly breakdown of cryptocurrencies that went defunct and details the methodology by which these cryptocurrencies can be deactivated and removed from the CoinGecko platform.
Due to the massive number of visits to their website, exceeding 200 million page views per month, and over 10 million monthly active users, the CoinGecko team puts significant effort into monitoring the quality of all cryptocurrency projects. In their conducted research, they analyzed the total number of coins and tokens grouped under the term "cryptocurrencies" that were once listed on CoinGecko but are currently either inactive ("dead") or deactivated. The results of this study were organized by years from 2014 to the present.
Furthermore, in their publication, they provided information about the reasons why projects may be excluded from their service. Cryptocurrencies are subject to deactivation and removal from CoinGecko in the following cases:
Lack of trading activity in the last 30 days.
Detection of fraud or "rug pull" based on news data or direct messages from verified sources for CoinGecko, considering their prompt interaction with various projects and the media.
A statement from the project itself requesting deactivation. This can occur when the project team disbands, rebrands, closes the project, or significant token changes lead to the liquidation or "deadness" of old tokens according to CoinGecko's criteria.
As seen in our article and supported by CoinGecko's research, numerous projects in the cryptocurrency industry often close for various reasons. This is a natural occurrence in such a dynamic field. In light of this, our Coinmooner team wants to remind our readers of the importance of carefully choosing projects and cryptocurrencies for investment. We recommend relying on both reliable sources and personal analysis to ensure confidence in the safety of your investments.
Additionally, we urge our readers to consistently safeguard their finances, regularly update security methods, and utilize current and proven technologies for this purpose. Ultimately, pay attention to both the fundamental aspects of projects and your own security to establish a solid foundation for your cryptocurrency portfolio.