the 800 cryptocurrencies virtually "dead" after the fall of the Bitcoin price

In the decentralized financial sector it is not surprising to hear about the launch of a new project or cryptocurrency, although they are not always successful. In fact, since the end of 2017, about 800 of these digital coin initiatives are virtually "dead" or remain with a very low value, especially considering the drop in the value of bitcoin (BTC).

Recall that the creation of a new cryptocurrency involves a process called Initial Offer in Cryptocurrency (ICO), during which interested investors buy tokens that offer startups or companies that intend to raise funds for the launch of a product or service.

Financial reports estimate that US $ 3.8 billion in ICOs were collected in 2017, while so far in 2018 an incredible US $ 11.9 billion has been collected.

However, thousands of these projects end up forgotten or do not give the expected result. According to the "Dead Coins" website, more than half of the projects or about 800 digital currencies can be considered "dead" or worth less than 1 cent.

This scenario has worsened, in addition, thanks to the almost constant fall in the value of bitcoin (BTC), considered the referential cryptocurrency. Coinmarketcap estimates the drop by 70%, from a price of almost US $ 20,000 at the end of 2017, to practically US $ 6,200 at the time of writing.

Another factor that against the survival of digital currencies has been the cybercrimes that have been occurring since the beginning of the year, such as the hacking of exchanges in South Korea.

It should be noted that ICOs are highly risky businesses. On past occasions, we have read news about celebrities promoting ICO initiatives or about companies with innovative projects that seek solutions for problems that concern many traders; some ideas come to fruition, but many others remain in promises and the capital gathered from thousands of taxpayers ends up in the hands of some scammers, who flee after reaching their goal.

Other experts have predicted that in about 10 years, among the 1500 cryptocurrencies that exist today, only some will survive, because not all will have a practical use in the industry.

The comments, although supported by recent trends, could perhaps reflect a future scenario, in which digital currencies are diversified in terms of value not guided by a fixed code, but each one plays a role in the market and, for Therefore, it is valued for its contribution in some sector or financial field.