The initial coin offering crypto buzz hit all-time high popularity in 2017 when there were 875 projects, a significant jump from 29 in the previous year. 2018 picked up on the trend, introducing a further 1,253 projects. To date, there have been a staggering 5,683 ICO projects with 2,318 of them being cryptocurrencies. Of the total projects, 4,932 are based on the Ethereum platform.
However, only a few of these projects have lived up to expectations or the bear potential to pull through. A significant number have faded out and are now considered dead. Deadcoins, a platform that chronicles crypto projects that have ceased or have negligible operations, puts the number of dead crypto at 1,867 as of Jan. 16, 2020. Coinopsy, a similar platform, puts the number at 1,416. Similarly, CoinMarketCap, which provides daily crypto trading volumes, lists over 1,000 coins with volumes below $1,000. Thus, the number of dead cryptocurrencies is evidently in the range of 1,000+.
Besides dead crypto, there are lost crypto due to inaccessible wallets. Since crypto contained in such wallets are locked in and cannot be retrieved, they are considered “dead wallets.” While it is not possible to calculate the exact number of dead wallets, it is estimated that 300 wallets holding between 1,000 and 10,000 Bitcoin are lost, according to a digital forensics firm Chainalysis. This puts the amount of crypto out of circulation at about 20% (or, 4 million coins) that could be lost forever. According to Coin Metrics’ recent reports, 1.6 million of these coins are BTC.
Dead projects: Causes and effects
Crypto projects are considered dead if they satisfy one or more of the following: abandonment, low trading volume (below $1,000 for over three months), dead websites and inactive social platforms/lack of social updates, no nodes, wallet issues, confirmed scams and developers leaving the project.
Abandonment and low trading volumes
Although the majority of the projects start out with optimism and good intentions, it is reported that 60% die even before listing on exchanges. Of these, 63.1% are dead as a result of abandonment or low transaction volumes. The main reason behind this is the lack of utility. Since a significant number of projects are niche-directed, use cases are often limited and overlap. Often, in this case, price values for the projects depreciate to $0.01 and below, effectively leading to their deaths within six to 12 months.
Scams
It has been reported that 29.9% of ICO projects are outright scams. Scam projects manage to fleece investors because many investors enter into projects on the basis of speculation. To steer clear of scams, investors should sufficiently scrutinize projects they are interested in. According to statistics received by the results of the last year, about 30% of all scams were frauds, which were followed by hacking attacks, theft and phishing.
Failed funding
A small but considerable number of projects, 3.6% of the cumulative, do not take off due to failing at the fundraising stage, thus closing down altogether. This is attributed to the failure to attract interest and investors. This does not speak on a project’s viability or lack of. Generally, investors are attracted by a high return on their investments and the simplicity of the investment process.
Joke projects
Another category of projects that inevitably do not see the light of the day, by design, are “joke coins,” with a 90%–95% failure rate. Interestingly, joke coins make up 3.2 % of dead projects. One would think they would not receive any funding, but Jesus coin, ObamaCoin and Useless Ethereum Token have proved otherwise. UET, for instance, raised over $300,000 during its ICO.
Arieh Levi, an analyst at CB Insights, feels the problem lies in utility:
“I don’t think we found the killer app yet. It just seems like there’s been a lot of projects tried, but there aren’t really many users of blockchain protocols beyond speculators and traders.”
Widespread losses through dead projects draw attention from governments and legislative bodies tasked with citizen’s financial protection. In September 2017, China banned ICO ventures, terming them illegal. Coupled with other suspicious activities in the crypto industry, the United States Securities and Exchanges Commission was pushed to define the nature of crypto as well as provide guidelines on crypto regulation. Although crypto was built on the back of freedom away from governmental interference, the course of the industry is changing as projects have to conform to external pressure. While this development cannot be solely nailed on dead coins, they are a substantial contribution.
Dead wallets: Investor’s Achilles' heel, industry's blessing
Satoshi Nakamoto wrote:
“Lost coins only make everyone else's coins worth slightly more. Think of it as a donation to everyone.”
The quote made by Nakamoto indicates dead wallets are nothing out of the ordinary. Predicatively, crypto wallets will continue to be lost. The extent, however, can be expected to reduce as value increases. Today’s crypto users are more intentional than they were before, hence are more careful with their investments.
Also, as the industry takes shape, crypto platforms come up with tools to ensure ease of recovery while maintaining desirable security. Some investment platforms can already offer asset management services that include legacy planning. Other projects are moving forward and releasing the next blockchain generation. Blockchain platform Relictum Pro called this brand-new technology Blockchain 5.0 and revealed that it provides unmatched transactions processing rate, and offers a network that's fully decentralized and protected from all kinds of online risks. This creates an effective way to transfer the inheritance to nominated beneficiaries. In the event that a person is incapacitated or for some reason does not check-in for a given period, its life scheduling program reaches out to the family.
Currently, there is no technology to restore dead wallets. Efforts by so-called crypto hunters, who offer services on recovery attempts by “breaking into” digital wallets, see dismal results. Their crypto-hypnotists counterparts, who claim to hypnotize clients into remembering keys, equally have a negligible success rate. Consequently, dead crypto might as well be forgotten. James Howell and Gizmodo’s editor Campbell Simpson are two of the most painful cases of lost crypto. Howell managed to effortlessly mine 7,500 Bitcoins, while Simpson purchased 1,400 coins for $25 — both of whom threw them out shortly before Bitcoin prices started skyrocketing.
Speaking about the current market situation, GLBrain CEO Wolfgang Pinegger stated:
“The implication is that lost crypto contributes to the sum total of what will eventually be in existence by taking away from it. Essentially, there will be fewer cryptos in the market than initially intended. In the long run, depending on how much is lost in total, the crypto ‘dead share’ will cause a price increase by some percentage as demand goes up against a shorter supply.”
It is important to note that the current estimation assumes Satoshi’s share, about 1 million Bitcoin, will never be circulated. Satoshi’s identity is under speculation and one of the theories supporting the assumption is that the person or group of persons using the pseudonym is dead. In the same vein, the presumed dead wallets could be held by crypto whales awaiting an opportune moment to release the coins. Taken into consideration, this could drastically reduce the amount and value of lost crypto.
Crypto whales are suspected and reported to be influential during bull runs, as they dump large hordes of crypto. According to analysts, there is a possible 1 million Bitcoin being held by individuals ranging from 12,000 BTC at the lowest and 75,000 at the highest. The motivation for this sort of holding is twofold: First, crypto could appreciate in price and holders stand to rake in millions and billions of dollars in the future. Secondly, if Bitcoin becomes scarce and the demand rises, coins could be a valuable store of value like gold. This goes on to propose that crypto whales are buyers rather than dumpers, as suggested by theories around rising and falling crypto prices.
In the future, the crypto industry could be rid of whales. Whale Alert is developing analytics to identify whales to curb fraud and hacks. Accordingly, it will push out bad actors in the space. Speaking for Whale Alert, co-founder Frank van Weert said:
“We’re going to be able to collect data from the first moment, from the first block, for every chain, and start analyzing from there, both forward and backward.”
Van Weert further predicts that crypto whales are well on their way to natural extinction, saying:
“Eventually, those people will have to sell their coins, and more people are interested — more people are buying — and so, eventually, the distribution of BTC is going to hopefully level out a bit more, and there’s going to be hopefully fewer whales.”
Getting it right from the start
The crypto industry will keep developing and adjusting to eradicate the challenges that hinder project viability. A notable evolution is seen in diverse experimentations on consensus algorithms to reduce expenses, increase scalability, create transparency and speed up operations to meet consumer needs. The Ethereum network, responsible for the rapid expansion of the crypto industry, introduced the proof-of-authority concept, currently being tested by projects built on the network and adopted by businesses including Microsoft for Xbox Live.
The PoA protocol’s features allow users to participate in securing and development of networks. Vlad Miller, CEO of Ethereum Express — a community-driven blockchain-platform working on the PoA algorithm — told Cointelegraph:
“One of the significant advantages of PoA-based platforms is the ability to scale horizontally. PoA services can combine computing power for joint transaction processing, thus increasing the throughput of the entire network. The importance of this approach is that projects are user-driven, thus reduces the chances of failure.”
On one hand, dead coins have a direct influence on the funding of future crypto projects as well as the industry’s ability to present a convincing case on the importance, practicality and need for crypto. On the other hand, they affect how much people can trust startups as the engine for crypto and blockchain development. From the outset, the crypto community set itself apart as a democratic group with solutions to traditional financial upsets.
Unfortunately, the inability to establish real use projects by the community and the growing interest in blockchain and crypto from traditional institutions could spell doom for the entire venture. Traditional entities interested in blockchain technology could tap into its benefits while ignoring the fundamental basics of the technology, which are based on decentralization, trust and transparency. Dead crypto projects could involuntarily shift the power of the industry to traditional actors that are more likely to manipulate it for financial benefit.
Tightening regulations could help nip scam projects. For the greater 60% whose deaths are not deliberate, the crypto space is making concerted efforts in conducting better market research, investing in skilled developers and innovations as a means to prevent future failures. Other dedicated moves include community-based project CoinJanitor, which buys out dead coins and failed projects, and then burns them to clean out the market. More needs to be undertaken toward eliminating nonviable projects. As the market matures, crypto and blockchain consumers, enthusiasts and developers will keep inventing solutions that will push the industry closer to its goal.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Evan Luthra is a Forbes “Top 30 Under 30” tech entrepreneur and blockchain expert holding an honorary Ph.D. in decentralized and distributed systems. His companies, StartupStudio.online and iyoko.io, invest in and help build the companies of tomorrow. Evan is a featured speaker at various universities and conferences around the globe.
FAQs
Cryptocurrencies or NFTs in a dead wallet remain intact until the wallet can be accessed. The wallet's details can be obtained and verified on-chain via blockchain explorers like Etherscan, but the assets within can only be moved by anyone who has the private keys.
What happens to crypto in a dead wallet? ›
A separate “private key” allows the owner access to the wallet's contents. If a Bitcoin owner dies without passing on the private key, then their Executor can never gain access. What this means is, without this private key, the cryptocurrency can never be accessed and it dies with the deceased.
How do you get Atlantis coins? ›
Atlantis Coins can be gained as loot from encountering rare Orichalcum Sea Dragons during Atlantis Rises and from sources such as Wanted Missions and Rare Titan Loot. Similarly, the first completion of a Season 2 stage, on both difficulties, awards the player with Atlantis Coins.
Which crypto projects are dead? ›
List of Dead Crypto Coins
| Name | Summary | Project Start Date |
|---|
| BrentsuT | ICO Fail or Short Lived | 2011 |
| JarrettVop | ICO Fail or Short Lived | 2011 |
| Thter | Joke or No Purpose | 2022 |
| lux | Abandoned or No Volume | 2011 |
6 more rowsThe first piece of your emergency plan should be a will and power of attorney documents. Most crypto exchanges and digital asset platforms require a copy of a will or POA document before they will confirm that your assets exist and allow your executor to access them.
Can you access an old crypto wallet? ›
As long as you have written down your 12-word recovery phrase which was shown when you first opened the Bitcoin.com Wallet app, you will always be able to restore your old/lost wallets by using that phrase.
Can your crypto still grow in a wallet? ›
Yes, your cryptocurrency will continue to grow while stored in your wallet.
Can someone steal money from your crypto wallet? ›
Because private keys are stored in application and device wallets, hackers can access them and steal your cryptocurrency.
Can you recover money lost in crypto? ›
No, you cannot recover the money you lost in crypto. Crypto experts and several leaders advise understanding the crypto market and investments before investing.
How much is 1 atlantis coin worth? ›
Today vs. 24 hours ago
| Amount | Today at 7:00 am | 24 hours ago |
|---|
| 1 ATC | ₹0.15 | ₹0.14 |
| 5 ATC | ₹0.75 | ₹0.68 |
| 10 ATC | ₹1.50 | ₹1.37 |
| 50 ATC | ₹7.52 | ₹6.84 |
4 more rowsThe live Atlantis Coin price today is $0.001373 USD with a 24-hour trading volume of $640.88 USD.
Is Atlantis coin real? ›
Launched in May 2021 and migrated to BSC in January 2022, Atlantis Coin (Symbol: ATC) is a GREEN cryptocurrency designed for metaverse applications and served as the native token for MetaPay.
What is the most famous dead cryptocurrency? ›
There are so many coins that have faded into obscurity, often being called dead. One of the most famous examples is the Terra Classic coin (LUNC).
What is the most promising crypto project? ›
Our top pick for the best long-term crypto is Wall Street Memes, an established meme platform with over 1 million followers across different mediums. In just a few days since the presale went live, Wall Street Memes has raised over $2.2 million through the $WSM token.
Which crypto fell the most? ›
Bitcoin lost over 60% of its value in 2022—here's how much 6 other popular cryptocurrencies lost
- Terra: -100%
- Solana: -93%
- AMP: -93%
- Cardano: -80%
- Ether: -67%
- Bitcoin: -63%
- Dogecoin: -55%
Use an exchange to sell crypto
One of the easiest ways to cash out your cryptocurrency or Bitcoin is to use a centralized exchange such as Coinbase. Coinbase has an easy-to-use “buy/sell” button and you can choose which cryptocurrency you want to sell and the amount.
What happens if a Bitcoin owner dies? ›
When you inherit Bitcoin, Ethereum, or other forms of cryptocurrency. When someone who owns cryptocurrency dies, their digital wallet is part of the estate they leave behind. However, estate planning is crucial for any transfer of cryptocurrency to occur.
Can a crypto wallet be traced to a person? ›
Because someone's wallet address does not have to be anonymous but can be hard to find, a Bitcoin wallet address is called a pseudonym, an alias, which is different from someone's actual name. The data is not linked to an identity, but it is still possible to trace someone's identity or a pseudonym.
How do I find abandoned crypto wallets? ›
If you're lucky, you may be able to find your lost wallet using the Bitcoin recovery service. These services typically require you to provide partial information about your lost wallet, such as your public key or seed phrase. Once they have this information, they can help you recover your lost Bitcoins.
Can the government track your crypto wallet? ›
Yes, the IRS can track crypto as the agency has ordered crypto exchanges and trading platforms to report tax forms such as 1099-B and 1099-K to them. Also, in recent years, several exchanges have received several subpoenas directing them to reveal some of the user accounts.
1) Satoshi Nakamoto's Wallet
Satoshi's wallet contains an estimated 1.1 million Bitcoin, but according to a new report from 2020, it may have been slightly higher.
What is the best crypto recovery service? ›
One reputable firm is ReportScammedBitcoin.com (RSB), which offers a straightforward process for recovering lost or stolen cryptocurrency. They work with law enforcement agencies around the world and handle all communication on behalf of their clients.
What is the safest cryptocurrency? ›
Is Bitcoin safe? Bitcoin is the most recognized cryptocurrency, so it's generally viewed as one of the safer investments within the crypto world. As with all cryptocurrencies, however, Bitcoin's price can change dramatically within a short time period.
Should I keep all my crypto in one wallet? ›
In general, it's good practice to divide your cryptocurrency holdings among multiple wallets, depending on your investment strategy and risk tolerance. For example, you could use one hot wallet for day-to-day transactions, a hardware wallet for long-term storage, and a paper wallet for an extra level of security.
Will Coinbase refund if scammed? ›
Therefore, if your Coinbase account gets compromised or accessed by any unauthorized users, Coinbase takes responsibility and guarantees to reimburse you within 48 hours. However, the refund is limited to the amount that Coinbase can recover from the third-party responsible for the fraud.
Is stolen crypto taxable? ›
Crypto scams like phishing scams and rug pulls are common. You won't pay tax on any stolen crypto. You may be able to claim your stolen crypto as a capital loss depending on where you live. You cannot claim stolen crypto as a capital loss in the US.
Do banks refund scammed money? ›
Banks have a legal and ethical responsibility to refund scammed money to their customers. However, you can't always get scammed money back. Whether it's a lack of evidence or human error on your part, thieves can sometimes get away with your stolen funds.
Can the FBI recover stolen crypto? ›
Federal agents have recovered most, but not all, of the bitcoin ransom paid in the Colonial Pipeline hack, Justice Department officials say.
What is the legit crypto recovery company? ›
Assisting clients in recovering stolen crypto for several years, DPS Cyber Security has become one of the leading and renowned crypto recovering companies. In lieu of a scam, the company tracks down and recovers digital currencies that have been lost by investors, traders, and corporations.
Can I get my crypto back from scammer? ›
Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you can only get your money back if the person you paid sends it back. But contact the company you used to send the money and tell them it was a fraudulent transaction.
You can trade for Atlantis Coin using ETH in your Coinbase Wallet.
What is the future of Atlantis Coin? ›
According to our current Atlantis Coin price prediction, the value of Atlantis Coin is predicted to rise by 0.00% and reach $ 0.020001 by June 27, 2023. According to our technical indicators, the current sentiment is Bullish while the Fear & Greed Index is showing 65 (Greed).
What Coin is worth 10,000? ›
The value of a 1999 Georgia State Quarter has been estimated at up to $10,000 due to errors made while the coin was being minted. This quarter is the fourth coin in the 50 State Quarters Program. The United States Mint released it on July 19, 1999 as the fourth quarter of the year, according to the US Mint.
How much is Atlantis in usd? ›
Convert Atlantis Coin to US Dollar
| ATC | USD |
|---|
| 1 ATC | 0.020001 USD |
| 5 ATC | 0.100007 USD |
| 10 ATC | 0.200013 USD |
| 25 ATC | 0.500033 USD |
5 more rowsGODS Price Live Data
The live price of Gods Unchained is $ 0.1635142 per (GODS / USD) with a current market cap of $ 37.10M USD. 24-hour trading volume is $ 3.99M USD.
In which Exchange is Atlantis Coin listed? ›
Atlantis Coin is only available through Coinbase Wallet.
What is Atlantis wallet? ›
Atlantis is a big wallet, eight credit card slots, three ID windows, a split note compartment, two slip pockets, a central zipped compartment and a button close coin compartment mean this wallet can carry around quite a lot!
When was Atlantis coin launched? ›
Atlantis Coin was launched in the first half of 2021 with the aim of laying the foundation for an ecologically sustainable cryptocurrency with substantial economic upside potential.
What is Atlantis in cryptocurrency? ›
Atlantis (ATLAS) is a blockchain-powered decentralized reserve currency protocol based on the ATLAS token. Each ATLAS token is backed by a basket of crypto assets, ensuring that the intrinsic value is retained.
Which crypto billionaire lost billions? ›
Its billionaire promoters have lost a combined $110 billion in the last year, according to Forbes' 2023 World's Billionaires List, an annual compilation of ten-figure fortunes. Last year Forbes identified 19 crypto billionaires, the most ever, who were worth a collective $140 billion.
Bitcoin (BTCUSD), Ethereum (ETHUSD) Price Drop, Wiped Off $200 Billion in a Day - Bloomberg.
Which cryptocurrency billionaire died? ›
The spiral started toward the end of October 2022 when Nikolai Mushegian, co-founder of MakerDAO, was found dead on a Puerto Rican beach just hours after tweeting that intelligence agencies were after him. The next billionaire to perish was broker Javier Biosca, who was found dead on Nov. 22 in Estepona, Spain.
What is the next big crypto coin 2023? ›
Based on current trends and market analysis, some cryptocurrencies that are expected to grow in 2023 include Ethereum, Binance Coin, AAVE, Algorand, and more.
What is the next big crypto project 2023? ›
Pikamoon (PIKA) – A play-to-earn Pokemon-inspired blockchain project. The 10,000+ whitelist signups and over 15,000 social media followers indicate it will be one of the next cryptocurrencies to explode in 2023.
Which crypto will boom in 2023? ›
Ethereum has become a valuable investment option, with its price skyrocketing from $11 to an impressive $1,734 in March 2023, marking a staggering growth rate of 15,659%.
Which coin will pump soon? ›
We have narrowed down our choice of crypto coins that are expected to pump 30x before 2024 to eight. Prime suspects among them are Love Hate Inu (LHINU), DeeLance (DLANCE), Metropoly (METRO), Ecoterra (ECOTERRA), and RobotEra (TARO), as these tokens represent a new era in crypto development.
What is the next big crypto? ›
InQubeta (QUBE), DigiToads (TOADS), Rocket Pool (RPL), Lido (LDO), and Render (RNDR). Each one stands out with innovative features in AI, gaming, DeFi staking, and rendering services, making them top cryptos to buy.
Which coin is best to invest now? ›
Bitcoin: A Currency with the potential to be among the most lucrative crypto coins.
How do dead wallets work? ›
A dead cryptocurrency wallet is one that has stayed dormant for a long period of time. Dead wallets hold crypto assets but haven't sent or received any transactions for years. Dead wallets can occur due to the loss of wallet keys, holders holding long-term investments, or even the demise of the wallet owner.
What does a dead wallet mean? ›
A dead crypto wallet is a cryptocurrency address that has been inactive for years. They always hold funds,but have neither income nor spending transactions,and most of them never will.
A cold storage (or cold wallet) is a device for storing cryptocurrency that is disconnected from the internet. ... Like a software wallet, if your cold storage device is lost or destroyed, you can still recover your funds as long as you still have the recovery phrase you set the device up with.
Can you recover a hard wallet? ›
As long as you still have your seed phrase your wallet can be recovered. If you lose both your hardware wallet and seed phrase, there's a good chance your funds could be unrecoverable.
What percentage of lost wallets are found? ›
The trend showed up in every nation, although the actual numbers varied. Switzerland led the study with a 79 percent return rate for wallets with cash. The United States fell in the middle with a 57 percent return rate, while China had the lowest return rate of all the countries studied, at just 22 percent.
Does coin burning increase price? ›
Coin burning reduces the supply, making tokens of that cryptocurrency scarcer. That scarcity can lead to an increase in price and benefit investors.
How much Bitcoin is in dead wallets? ›
Tens of billions worth of Bitcoin have been locked by people who forgot their key. Of the existing 18.5 million Bitcoin, around 20 percent — currently worth around $140 billion — appear to be in lost or otherwise stranded wallets, according to the cryptocurrency data firm Chainalysis.
Why put coins on dead? ›
Coins for the dead is a form of respect for the dead or bereavement. The practice began in classical antiquity when people believed the dead needed coins to pay a ferryman to cross the river Styx.
Is it unlucky to give a wallet without money in it? ›
Theoretically speaking, giving someone an empty wallet could be a bad omen or a bad sign. However, it's not a big deal at all because it depends entirely on how superstitious the recipient is. After all, you should remember that the best gifts are the ones that are useful or are personal.
What is a dark wallet? ›
Dark Wallet was an early attempt to improve the anonymity of Bitcoin transactions. Later projects, such as Samourai Wallet and Monero, were inspired by Dark Wallet. Dark Wallet included stealth addresses and coin mixing, which became features of other wallets and cryptocurrencies.
What is a 24 word recovery phrase? ›
Your 24-word recovery phrase serves as a backup to all your private keys. As long as you have your recovery phrase, you will always be able to regain access to your crypto assets. You can restore any Ledger device from your recovery phrase to recover the wallet configuration and access your funds.
What is actually stored on a cold wallet? ›
A cold wallet is a type of cryptocurrency wallet that securely stores your private crypto keys offline, usually on a physical device. It's also known as a hardware wallet, and it protects your digital crypto assets from online hackers by using a flash drive-like device that isn't connected to the internet.
Can a cold wallet be hacked? Almost nothing is immune to being hacked, including cold wallets. While a cold wallet ostensibly cannot be hacked remotely, if your device is stolen, that's another story. For starters, if your PIN is stolen along with your cold wallet, someone could access your crypto.
Do lost wallets get returned? ›
If you have found a lost wallet and are aware of the valuables you are holding in, it should be returned to its owner ethically. How to return lost wallet? When you find a lost wallet, you can return it by trying to reach the owner through a driving license, ID card, or debit card found in the wallet.
What happens if you lose your private key? ›
If a user loses their private key, they can no longer access the wallet to spend, withdraw, or transfer coins. It is, therefore, imperative to save the private key in a secure location. There are several ways private keys can be stored. They can be written or typed on paper—these are called paper wallets.
What are the risks of a cold wallet? ›
The security of cold wallets comes with a significant risk of loss. For example, if you forget your PIN and backup codes, it may be impossible to recover cryptocurrencies or other assets on the device. In addition, if you lose or destroy the device, your crypto assets are gone forever.
