According to Bloomberg, the cryptocurrencies graveyard is filling up. Dead Coins made a list of almost 800 tokens that are devoid of life, whereas Coinopsy evaluates that more than a thousand have bought a farm.
In that list there are scams, such as BRIG – the fraudulent project of the brothers Jack and Jay Brig – and Titanium. Also, there are projects in which protocols there are no hints of any development or future activities. It is noteworthy that altogether all these dead projects attracted several billion dollars of investment.
As Bloomberg notes, despite the fact that financial regulators of different countries constantly check the issuers of tokens for legitimacy, amateur investors often neglect the basic rule, which requires at least an initial analysis of the project, and invest millions of dollars in extremely questionable coins.
The results of the Satis Group research showed that in 2017 fraudulent ICOs gained more than $1 billion. Among those, 271 projects were convicted of plagiarism when drafting a white paper, had employees who pretended to be other people, or conducted other dubious activities.