Hello!
According to CoinMarketCap, there are only 10K cryptocurrencies on our planet.
It's no secret that the vast majority of crypto projects are scams.
Fraudulent projects aimed at emptying pockets include:
- penly fraudulent projects created only to defraud people of money;
- multi-level pyramids, also a type of the first category, in other words, scammers;
- all kinds of meme tokens (a necessary evil);
- zombie projects that seem to exist, they are in ratings and on exchanges, but even upon closer examination it is clear that the site does not work, social networks are either absent or abandoned, often have minimal volumes so as not to be excluded from the CoinMarketCap and Coingecko;
- everyone else who does not bring anything useful and just wants to make easy money on hype and take money from the gullible.
It seems that there is a figure of 10K cryptocurrencies, but what is behind it is not entirely clear.
Let's try to decipher it using the example of the Klondike Gold Rush of 1897:
- about 1 million people intended to go for gold in the Klondike;
- about 100 thousand actually followed him;
- about 60 thousand people died on the way or returned back;
- about 40 thousand people reached Dawson - this is a hotbed of fever, where applications for areas with gold were registered;
- only 4 thousand of them actually found gold.
4000 out of 1 million. This is 0.4%
Basically, you can easily replace the word “gold” with “crypto project.”
40 out of 10K. This is 0.4%
You will say, only 40 real projects, but this can't be. And perhaps you are right, our task is only to show an analogy, and everyone draws their own conclusions.
What if you do it manually?
The numbers below will give you a more complete picture and help you separate the wheat from the chaff.
You can look at all these numbers yourself on CMC or CG, but we will make it easier for you and provide these statistics here
Let's go!
Total number of cryptocurrencies: 10K
This figure is beyond doubt, we hope you agree with it.
Out of 10 thousand cryptocurrencies, we can accurately determine:
- "Dead" - no volumes: 1.6K
- "Scam" - Meme tokens: 3.7K
- "Zombies" - no website and/or social networks - 2K
Let's subtract all the chaff.
Remaining: 3K cryptocurrencies.
These are coins that can be conditionally called normal.
Among them there are fraudulent projects, pyramids, absolute dummies without technology, but for example with a beautiful website and others, but here are also presented normal and cool projects.
Even without looking at ordinary scammers, you can take statistics that about 90% of new businesses fail.
In fact, all projects presented on the crypto market are startups. Statistics are merciless - more than 90% of startups fail. Bankruptcies occur for various reasons - among them, lack of experience, lack of necessary knowledge and poor development of the business idea.
Okay - let's count. 90% of 3K is 2.7K
That is, 2.7K crypto projects will close and disappear, this is the inexorable truth of life.
Whoever does not believe and wants to argue, let them go smoke, we are not here to encourage rainbow dreams.
Well then:
There are 300 crypto coins left that will survive.
This does not mean that they will bring profit to their holders.
Many projects are created only so that only their creators can earn money. Don't believe me? Look at the cemetery of abandoned ones - there are already more of them than are currently on the market. This is a huge scale.
You can also look at those coins that entered the market and fell sharply. People sit for years and wait for the weather by the sea, which never comes.
It doesn't matter, despite all of the above, let's make an optimistic forecast that out of 300 real crypto projects, only 50 or 60 are dishonest.
Finally, we have 250 crypto coins left - which can be analyzed.
There is a bias here: about 70% are various solutions for blockchains and all other various projects.
Among the 250 coins, there are normal meme tokens like DOGE or Shiba, and high-quality and cool projects that transform entire industries, many strong projects, but even among them, there is an unjustifiably large percentage of blockchains and solutions for blockchains and various protocols.
Yes, of course, it is clear that a lot of money has been invested in these projects, but no one has canceled the competition. You can understand how many blockchains will remain using the same startup survival methodology.
Perhaps we will stop here.
In our opinion and on the basis of deeper analytics, which can be described, but it will be long and tedious, we came to the very figure - which is given at the very beginning of our article - namely, out of 10K current cryptocurrencies, only 40 coins are reliable investments.
Good luck and take care of yourself!
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