Invest In Blockchain Study: 60% Of Crypto Projects Have No Working ProductA new study concluded that among the top 100 cryptocurrencies, only 40 appear to provide real value to the public.
A new study carried out by Invest in a Blockchain, a startup founded in 2017, continues to elicit mixed reactions on suggesting that as many as over 60% of top 100 cryptocurrencies have no working product. According to the study, only 40 of the top 100 cryptocurrencies appear to provide real value to the public.
Invest In Blockchain Study
Some of the cryptocurrencies that met the mark include Bitcoin, Ethereum, Bitcoin Cash, Ripple, Augur, Nano, Monero, and Zcash among others. The biggest casualty of the study was Dash, which missed the mark even on its fork Pivx joining the exclusive list.
The study continues to elicit mixed reactions in part because it is still unclear whether the criteria used to rate the projects is the acceptable standard. However, authors of the study insist certain standards were applied across the board to come up with the final determination.
A working product according to Invest in Blockchain is one that is active and available to the public. It should also have a mainnet that in addition to being active has been upgraded many at times and is well above version 1.0. Businesses, as well as people, should also be using the underlying product be it a DApp, smart contract or digital currency on a daily basis.
According to the Invest in Blockchain, just taking into account the fact that a project is open source and built on top of blockchain does not meet the threshold in affirming a working product. Some cryptocurrencies claim to have a working product just because it is in the public domain yet no one has ever used it.
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Crypto Scam and Fraudulent Projects
The fact that projects with working products have also had to contend with a string of vulnerabilities all but shows it is not easy to have a working product in the sector. The Verge Network is one such project that was forced to fork its network after a hacker exploited’ some loopholes and walked away with tokens valued at about $1.7 million.
Bancor has come under pressure following a hacking incidence that resulted in the loss of Ethereum tokens worth $12.5 million
While the findings come as a shocker, they come at a time of growing concerns about fraudulent projects and scams in the cryptocurrency space. Recent studies have shown that as many as 80% of ICO projects conducted last year have either collapsed or face an uncertain future given that they lack any tangible product to cling on to.
“If you haven’t run into at least a handful of people who are cynical about the state of the blockchain industry and think it’s mostly scams and vaporware, well… you probably haven’t been into crypto for very long,” John Bardinelli and Daniel Frumkin wrote in the study.