Why do many new crypto projects fail?

[MinMan]

Simply because they are not aiming to succeed. Majority, probably 90%+ of those "dead" or failed coins are made so that creator of those coins and tokens could get rich, that's all they care about and not the survival of the project. They want to make as much money as possible and get rich and leave.

They do but they only have a different definition of being successful. They want it the quicker way, just like those people that invest and hope for the same thing. What they say is really true that if you want to get rich, you need to do illegal things but people who have the conscience won't still do it.

To be fair that is because of us, we the investors made that happen, because back in the day when a coin was created, it was created at a moment where even the creator would not profit, and would have to mine like rest of us to have their own coin, unless it was pre-mined and we would never invest into those. Nowadays? We are giving people free money to create tokens, and obviously scammers take advantage of that and create shitcoins to take our money.

Back in the days ICO was already invented and for sure, not all funds raised are going straight to the project, especially if they got more money. But I can see that the token creation scheme before is much fairer, though the problem is still on the devs because later on, it was discovered that some big project really had a pre-mine and ETH is said to be one of it. Now, ICO is not that hot anymore but project creation have only gotten easy. This makes the scam more rampant than ever.

[gunhell16]

Most of the new crypto projects nowadays are not really serious about the token/coin they are promoting. Because once they reach the target funding they are aiming for,
they will suddenly abandon the project and take out (dump) the money of the investors who believed in their token.

And their community investors are always the ones who suffer. That's why when promises are too good to be true, we, as investors, should start thinking twice,
because the chances are high that the project will end up as a rug-pull or just a scam in the end. Vigilance is still what we need to practice.

[Accardo]

And their community investors are always the ones who suffer. That's why when promises are too good to be true, we, as investors, should start thinking twice,
because the chances are high that the project will end up as a rug-pull or just a scam in the end. Vigilance is still what we need to practice.

Vigilance at knowing when to leave before they rugpull is fine, but it would be so much work on the investor's end. The alarm is not there to raise suspicions, the right way would be to watch this projects with little investments, and whenever the shift is bullish, purchasing more could be recommended, on the other flip, the person can withdraw and leave.

[Y3shot]

Most projects fail because they're just money making opportunities for their teams and when they cashout the profits from launching a successful project at TGE. Successful TGE doesn't always reflect the project success. I have seen it times without number. Most of these projects are pure grift because them teams know that there is no real market for whatever they are building but still go ahead to launch a token for "governance".

IMO, the reason why many projects fail is that, at first, they never had any plan or target to be successful or reliable, and the target is just to make money from the investors. Projects that we have and that are reliable are successful because the target is to be successful.

The truth is that if I'm working on a project and it won't work well, from the beginning I already know what the project will be up to. Projects fail because the team lacks what it takes to make a project better.

[finaleshot2016]

What do you also think on Why many new crypto projects fail.

No community, lack of voice, repetitive utility and a used narrative.

This crypto space is also like how the world works, you need the power of people, a solid foundation with trust, proper marketing and explanation how good it is, a unique utility that's a game-changer to the current use of crypto and also the narrative. It's easy to create a project but it's hard to prolong the project because they lack vision and people's power and that's the reason why there's a lot of failed crypto projects. But those are just extra volume to our chains so it's a good use of crypto too but as a token, they're failures.

[taufik123]

What do you also think on Why many new crypto projects fail.

No community, lack of voice, repetitive utility and a used narrative.

The absence of a community is the most influential thing for a new project in crypto.
The community is an important part of building a project because marketing will be completely dependent on the community and even more so the happy community will have a good impact on the project.

But if a new project does not respect the community, then it will certainly fail and not grow,
because I have experienced firsthand how the community is disappointed by the new network project and the rewards that do not match what the community is doing.

In fact, some devs underestimate their own community or early adopters and in the end more failures occur until eventually the community gets angry.

You probably know what happened to the OGlabs project that angered the community who thought the early users of the tesnet were worthless and unneeded,
until in the end their X account and Website were hacked by their own community.



https://x.com/DegenerateNews/status/1974828129026728312

Many new project devs should learn from this incident and not underestimate their own community,
the community is happy the project will be successful and safe, but if the community is angry then prepare for a rupe.

[Kavelj22]

In fact, some devs underestimate their own community or early adopters and in the end more failures occur until eventually the community gets angry.

A lot of project teams don't really care building the good reputation supported by community trust. They don't hesitate to scam their own communities or to force them to gave up their privacy. In the Altcoins board, there is an infinite number of projects who delayed transactions for bounty hunters who helped them promote their brands. While there is another infinite number of crypto projects who completely ignored their communities. I saw a lot of them in the crypto-based casinos, where some casinos ignore solving pending disputes, let all its community down.

[CoinAge.Cash]

So what does it come down to when making a new Token (Altcoin)? What is really anybody looking for that just a investment? Not just staying because what the Token (Altcoin) offers? If you look at BTC you can not really buy anything with it, that is not kinda under-table and been kinda knocked of when it comes down to taxes and laws and also regulations? For those who bought tones of BTC for 100 bucks each and kept this whole time what about capital gains?

How would I get my Token (Altcoin) to be safe to use with the real world with the right laws and regulation in place? like an actual visa or master card, that allows you to buy precious metals?

I am making it from the ground up without no knowledge, so tuned for Progress update Log: Currently in Research Stages:

https://coinage.cash/viewtopic.php?p=23#p23

[justdimin]

Most of the new crypto projects nowadays are not really serious about the token/coin they are promoting. Because once they reach the target funding they are aiming for,
they will suddenly abandon the project and take out (dump) the money of the investors who believed in their token.

And their community investors are always the ones who suffer. That's why when promises are too good to be true, we, as investors, should start thinking twice,
because the chances are high that the project will end up as a rug-pull or just a scam in the end. Vigilance is still what we need to practice.

This type of project became famous when people didn't care about the end result. There were few who created something, got funded, then left and scammed every investor of their project, but then when another one happened, people still funded it, got scammed, but then funded th.. you get my point. So why would those bad people stop?

Scammers are aware that if they make a believable enough project, then they are going to end up getting funded. Obviously not every single one of projects get funding, but if you can do a good scamming, as in a good website, good project manager, a great marketing etc, basically what a serious project would need, you can scam people. Because to be a good scammer, you need to be a good project as well, most scammers create good projects that may have a future if only they didn't scam.

[danherbias07]

The crypto space is so big now. That's why.

If an Altcoin wants to thrive in this crypto economy, it will need a project that will be hyped, and the support will keep coming even after the hype. Other popular coins in the top 10 do have a project that is good, and they have a fanbase that won't easily be urged to switch to another.

I have been at that point in my life where I became a hardcore fan of one altcoin during the ICO days, and I really thought it would continue. I was just glad I exited at the right time and took my investment back with some profits.

[DevFile90]

Its money grabbing technique.

Many new projects are not even suppose to come into the spotlight because they are not fully ready yet but since crypto space is lacking regulation who needs a fully baked project to make money anyway? I believe this is what every small developers are thinking, they just want to get something going and make money on it.

Later they will put the blame on market situation or the money they raised isn't enough anymore so they have to close down. Developers aren't building anymore, they are looting just like Trump did with his meme coin. A leader shows what he is made of, the crowd follows.

[bogdanb]

What do you also think on Why many new crypto projects fail.

There are many reasons why projects fail but the main ones we see are that they don't have a good idea of how to move the project forward in the real world and they can't move forward accordingly. They don't have an idea of how to maintain the hype of the project and they can't do the things that are needed to create the hype of the project. The community is not good and they can't market the project well. Although there are many other reasons why projects fail, these are the major reasons.

[CoinAge.Cash]

Here are some reasons why most alt coins fail :


Lack of real utility – No real-world use case beyond hype or speculation.

Weak team – Inexperienced or anonymous founders with no proven track record.

Poor tokenomics – Unsustainable supply, inflation, or unfair token distribution.

No community support – Fails to build or engage a strong user base.

Rug pulls or scams – Founders intentionally abandon the project after raising funds. Thank god they fail otherwise lot of investors will suffer.

Market saturation – Too many similar projects competing for limited attention.

Regulatory pressure – Legal restrictions or compliance issues shut it down.

Poor marketing – Inability to reach investors or communicate value.

Lack of funding – Insufficient capital to continue development and operations.

Security flaws – Exploits, hacks, or vulnerabilities destroy user trust. The reason for this is again weak team already listed above.

Can I quote you and post in my bitcointalk.org suggestions for my research in making a token for what I am trying to accomplish? The quote will be posted on my site.

Also Regulatory pressure can you tell me more about this?

[tygeade]

Most of them fail because the devs are not caring about what the public demands. I can literally start a project today, and do better than 99% of the market, it doesn't require that much. All you have to do is just not be a scam as rule number one (you are already better than 50%+ of the new projects if you do that) and then you have to listen to public demand, investors spend money on your project and fund it, if they want something then you have to provide it for them.

When you do these two things, then you are not going to end up with bad results, you are going to do fine. Obviously this takes time and dedication, and can't be done by someone who does this for their income, you have to have funding yourself first.

[CoinAge.Cash]

Most of them fail because the devs are not caring about what the public demands. I can literally start a project today, and do better than 99% of the market, it doesn't require that much. All you have to do is just not be a scam as rule number one (you are already better than 50%+ of the new projects if you do that) and then you have to listen to public demand, investors spend money on your project and fund it, if they want something then you have to provide it for them.

When you do these two things, then you are not going to end up with bad results, you are going to do fine. Obviously this takes time and dedication, and can't be done by someone who does this for their income, you have to have funding yourself first.

How much capital would you say is needed? And can you set miners to mine them if someone did not have capital? how does this work?

[bogdanb]

Many new crypto projects fail due to a mix of technological, market, regulatory, and managerial reasons.

Key factors include:
   •   Lack of real-world utility or clear use case, making it hard to sustain interest or value.
   •   Market volatility causing rapid devaluation.
   •   Poor leadership and weak project management, which can lead to confusion, stalled development, and loss of trust.
   •   Regulatory challenges and failure to adapt to legal requirements.
   •   Security flaws and vulnerabilities in the technology that undermine trust.
   •   Scams or fraudulent intentions damaging reputations.
   •   Marketing failures: even good tech fails without effective communication and community building.

This post look like written by AI post. Is there any need to write and post here with AI?

[Ojima-ojo]

There has been over 10000 coins made.

Yes, exactly. But it will be good for people to know that there have been over 20000 coins listed on Coinmarketcap in 2021. It was even more than that, just that they are more shitty and not listed. There are some shady exchanges that listed more while some that did not make it to the point that they can be noticable.

Right now, there are over hundreds of thousands of coins but Coinmarketcap reported them to be over 1 million coins. If 10000 coins can not all be good but some remain as shit coins, what will happen to over hundreds of thousands of coins?

Another thing is that most altcoins are considered as one, in a way that investors are living old ones for new ones to gamble and make profit. The coin will become old in few weeks or months and they will leave it for another to gamble. So no max supply.

Cryptocurrency market have been spammed with tons of shit coins and as far as we already know, it takes the strong to top among the hundreds of thousands coins we have on the global market.

Most of those coins just sold hype's to their investors, we have known this since and that is why we are always skeptical about altcoins, since majority of them are just nothing but shit coin and have no ecosystem for long term existence.

[Akbarkoe]

Why do most of them fail?

because their vision and mission is not right for the market, most of them always believe that they will compete with other assets and steal investors with slightly better technology, of course if there are not many changes to the project then people will not be interested in altcoin, and most of them just steal the hype to collect profits from selling their tokens, many developers do this, they say they care about the community but they sell their tokens continuously to make a profit, and investors or people like you will become victims if  caught up in the hype.


Most projects rely on hype and developers use it to make a profit instead of caring about the community to offer better innovation.

[woez]

Why do most of them fail?

because their vision and mission is not right for the market, most of them always believe that they will compete with other assets and steal investors with slightly better technology, of course if there are not many changes to the project then people will not be interested in altcoin, and most of them just steal the hype to collect profits from selling their tokens, many developers do this, they say they care about the community but they sell their tokens continuously to make a profit, and investors or people like you will become victims if  caught up in the hype.


Most projects rely on hype and developers use it to make a profit instead of caring about the community to offer better innovation.

Some also fail due to lack of funding and poor timing. Honestly, sir, this is reality, and what you're saying is 100% true. Teams and devs deploy tokens like the wind, one prints another with a different concept. They only care about profit and don't bother consistently building their projects to success. User money is just a toy for those who have sincerely invested in coins or tokens. They lack honesty and their mentality is completely damaged. Automatically, retail investors who come late end up becoming victims.

[taufik123]

A lot of project teams don't really care building the good reputation supported by community trust. They don't hesitate to scam their own communities or to force them to gave up their privacy. In the Altcoins board, there is an infinite number of projects who delayed transactions for bounty hunters who helped them promote their brands. While there is another infinite number of crypto projects who completely ignored their communities. I saw a lot of them in the crypto-based casinos, where some casinos ignore solving pending disputes, let all its community down.

Such projects that ignore their community will only end up failing, they cannot succeed without a community,
without early users who struggle to test and provide feedback on the project.

If in the end, the community is ignored, bad things like what I explained will always happen. In fact, it's not just the OGlabs project that has recently happened,
but there are many other crypto projects today that are completely ignoring the community,
providing disproportionate rewards and even more allocations for Binance Alpha users which is currently controversial.