Crypto Projects Effectively 'Dead' as Era of Rampant Junk Coins Ends

▲ Virtual Assets

A shocking new study has revealed that the majority of projects listed in the virtual asset market have completely lost their value and have effectively entered a state of death.

On February 25 (local time), cryptocurrency media outlet NewsBTC reported on the grim survival rate of the virtual asset market, citing a recent report by crypto research firm AlphaQuest. According to the report, of the more than 12,000 projects registered on CoinMarketCap since 2011, approximately 80% have already disappeared or ceased trading. This stark statistic shows that while the virtual asset market may appear glamorous on the surface, in reality it resembles a massive graveyard that has swallowed funds from countless individual investors.

AlphaQuest identified low trading volume and liquidity, halted developer activity, and abandoned official social media accounts as key indicators in determining whether a project has effectively shut down. In particular, numerous projects that sprang up indiscriminately during bull markets were unable to withstand market volatility and subsequently vanished, leaving investors with massive losses and no means of recourse. The research team analyzed that as the virtual asset market matures, the pace at which projects that fail to demonstrate real value are eliminated will accelerate further.

Virtual asset experts advise that investors should closely examine technological substance and long-term sustainability when making investment decisions. Investing in trend-driven projects solely for the prospect of sharp price increases carries a very high risk of complete capital loss. Historical examples of thousands of projects disappearing without a trace serve as evidence of the harsh reality of the virtual asset market.

The virtual asset market is currently undergoing an intense process of separating the wheat from the chaff, with the majority of insolvent projects naturally being weeded out. The elimination of substandard projects to ensure the health of the ecosystem is an inevitable long-term trend. Investors should maintain a conservative approach to risk management by thoroughly verifying actual network activity and development progress rather than being swayed by flashy promotional claims.

Disclaimer: This article is provided for investment reference purposes only, and no responsibility is assumed for any investment losses resulting from reliance on it. The content should be interpreted solely for informational purposes.