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CoinGecko’s Crypto Cleanup: Thousands of ‘Dead’ Cryptos Removed
- CoinGecko, a major cryptocurrency data aggregator, has removed over 24,000 ‘dead’ cryptos from its platform.
- This highlights the fact that over 50% of all crypto have failed, with the highest number of 5,724 perishing in 2021 alone.
- CoinGecko deactivates cryptos based on criteria like lack of trading activity for over 30 days, fraudulent activities such as scams or ‘rug pulls’, and voluntary deactivation requests.
CoinGecko, one of the biggest crypto data aggregators, has removed more than 24,000 ‘dead’ cryptos from its website, a report shows. The report reveals that more than half of all cryptos have perished, over 7,500 in the last bull run alone.
According to their research, 2021 was the hardest year, with 70% of cryptos dying, which accounts for 5,724coins and tokens. For comparison, the year with the second highest fatalities was 2022, with 3,520 or 60% of dead coins. 2023 marked a sharp decline, as only 10%, or 289, of coins died that year.
CoinGecko researchers determine whether a crypto is ‘dead’ or ‘failed’ based on specific criteria for its deactivation and delisting from their platform. This process is applied to all cryptos that have been listed on CoinGecko since 2014 up to the current year (2023).
CoinGecko’s Criteria
- Lack of Trading Activity: If a crypto shows no trading activity for over 30 days, it is considered inactive and may be deactivated. This criterion helps identify coins or tokens that are no longer being traded in the market, which is a strong indicator of a ‘dead’ cryptocurrency.
- Fraudulent Activity: If a project is exposed as a scam or a ‘rug pull’ through news reports or direct reports to CoinGecko from credible sources, it will be deactivated. This criterion targets projects that have engaged in deceptive practices, betraying the trust of investors and users.
- Voluntary Deactivation Requests: Sometimes, the project teams themselves request deactivation. This could be due to various reasons such as the team disbanding, rebranding, closing the project, or undergoing major token overhauls. Old tokens that become sufficiently illiquid or obsolete are also removed, in line with CoinGecko’s standards. This shows that not all deactivations are due to negative reasons; some are part of a project’s evolution or restructuring.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
