List of Deceased Crypto Projects in 2023
A provider of data on companies in the digital finance industry, RootData, has released a list of crypto projects that failed to survive in 2023. The list includes well-known names such as Prime Trust, Yield Protocol, Wyre, Multichain, and Clockwork. In total, 116 projects were included in the list, all of which announced their closure or bankruptcy and had inactive online resources for a significant period.
Analysts from RootData highlight that the funds allocated for these “dead projects” exceeded $940 million. The most challenging period with numerous high-profile failures occurred in the second half of 2023.
High-Profile Failures in the Second Half of 2023
In June, the Wyre payment platform closed following the consequences of the crypto winter and Bolt Financial’s refusal to purchase. In July, Multichain filed for bankruptcy after its founder’s arrest and a series of hacks.
In August, due to financial difficulties, Crypto Custodian Prime Trust declared bankruptcy. Around the same time, Clockwork, a smart contract automation project based on the Solana blockchain, ceased operations due to limited commercial potential.
October witnessed the closure of Yield Protocol, a DeFi crypto lender. The company cited a lack of regulatory safety and sustained demand for fixed-rate borrowing as reasons for ceasing operations.
Cryptocurrency Market Recovery in 2023
Despite the failures in the crypto industry, 2023 also marked a year of recovery for the cryptocurrency market. In just 12 months, its capitalization more than doubled from $830 billion to $1.66 trillion. Analysts at Bitfinex predict that the market capitalization could reach $3.2 trillion in 2024.
Hot Take: The Rise and Fall of Crypto Projects
2023 witnessed a mix of success and failure in the crypto industry. While some projects thrived and the market experienced significant growth, others succumbed to bankruptcy or closure. The list of deceased crypto projects serves as a reminder of the risks and challenges that come with investing in this volatile industry. As the market continues to evolve, it is crucial for investors to stay informed and exercise caution when considering crypto investments.
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