Why do many new crypto projects fail?

[virasog]

Let's agree that a lot of projects ignore their communities. But some of them are quite successful at some extents. The question is not why those projects don't care about the community feedbacks, but how they can survive in such a competitive market. In my opinion, the answer to this question is quite evident. It's the exchange platforms who can help those project taking a share from the market by just offering trading opportunities without requiring any developement condition. All what those projects have to do is paying listing fees for the exchange.

Even the exchanges only care about the money they receive from the coin project owners to list the coin and don't care if the coin has a potential or purposeful usecase behind it.

In short everyone is collectively working to get money from the innocent people and give them the shitcoins which would have no value after sometime. As an investor one has to be very much careful to the invest on which altcoin and specially for which duration.

I want not recommend to invest in any altcoin long term, they're only meant to get profit short term or midterm. It's only Bitcoin that one can hold for years and years without any problem.

[gunhell16]

With crypto projects, it seems like it's also a matter of luck or timing to find one that will really give a good return in the end. Especially if you see that the hype for the trend they are promoting
is strong in the crypto space, even if only for a short time, you're sure to get a decent return.

However, this is very rare, and the projects that often fail lack demand from the investors who hold their coin/token, because most of them are only in it for the short-term.
And to be honest, there are also others who are not serious about their project.

[fullhdpixel]

I would say top ten, top ten is the way to go and if you are looking for anything lower than you are taking useless risk. There is a good chance that you are not going to make any money from those and you are putting yourself in incredible danger. It would be smarter if you could avoid that, and it would not make sense for you to do this.

If you could focus just on top ten, even there are stablecoins there, so take those out, and I do not personally like doge, so I would take that out too but that is personal preference, I do not like it because it's a memecoin but if you want to keep that then keep it. Then whatever is left is the decent ones and you should invest based on that, so that you could make some money.

[seonmo73]

I love the crypto space so much, I have been pondering on this for a while, made some few research on it and this is my say on it.

A lot of people get excited about the next big crypto project, but if you’ve been in this space for a while, you’ve probably seen dozens of coins and protocols launch with hype and then disappear. Many new crypto projects fail because they launch without a clear real world use case, rely only on hype and tokenomics, or have teams that aren’t transparent or skilled enough to deliver what they promise. Add poor security, weak communities, and bear market pressure, and you’ve got a recipe for collapse.

If you’re thinking about putting money into a new project, slow down. Check who’s behind it, read the whitepaper, see if the code is open source or audited, and ask yourself if the idea solves a real problem. Stick with teams that are visible, have experience, and show consistent progress instead of flashy marketing. Diversifying and only risking what you can afford to lose also helps you avoid getting wiped out by one bad bet.

Hype can make it feel like you’re missing out, but patience and research almost always beat chasing every new coin. The space is still young, and not every project will survive to maturity.

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

You made a great point — most failures come from hype without real foundations.
From my experience, the best way to identify a healthy crypto project is to look for a few key elements:

Transparent Development and Governance
A good team doesn’t hide. They publish updates, hold open discussions, and welcome feedback. You should be able to find their roadmap, GitHub activity, and governance model clearly explained.

Real-World or On-Chain Utility
The token should do something beyond speculation. For example, in the GLIP project, tokens are tied to a quarterly on-chain fee rebate system that rewards users who actually use the network. This kind of design aligns long-term value with ecosystem activity, not just hype.

Measured Growth Instead of Sudden Hype
Airdrops and presales can be useful if they’re meant to test liquidity and community engagement — not just inflate price charts. When a project like GLIP uses these phases to analyze real user participation before launching its DEX, it shows responsibility rather than greed.

Security, Audits, and Openness
Always check if the smart contracts are audited and if the team is responsive to security questions. A project that admits its limitations is far safer than one claiming perfection.

In the end, discipline beats excitement.
A sustainable crypto ecosystem will be built by projects that prioritize transparency, measurable utility, and ethical community growth — not just slogans.

[wiss19]

The best way to see this market as understanding the benefits and the downfalls of it as well. If we are not careful then we will not make that much money from it at all, it is not going to be that great. If we are careless about it, then there is no way that we can make the profits that we could make on the long term. This is why the best way to see new projects as something that will hurt us since it is a proven fact.

I understand there could be maybe 1% or even less that we can do here, but that doesn't mean that we should be considering this as that difficult to handle, it is going to be very difficult to handle. So that low chance is not worth the risk because return doesn't promise you enough to make that kind of money from them to wroth the risk.

[dezoel]

Money required to make a project be a "success" is not known. I have seen a project with 10 million dollars marketcap end up being told that it's actually a good one, and I have seen one with 200 million marketcap considered a failure. It all depends on everything and we should not be considered anything crazy, it should not be all that easy for any of us and we need to consider this as a big deal.

So focus on what could be done in a way that we can make some money and we should be able to actually make some great return with decent projects instead of what we have. Recovering from a drop is harder than just going up. So failed projects will stay failed, and at the very least avoid trying to invest into things that are already going down.

[WatChe]

I would say top ten, top ten is the way to go and if you are looking for anything lower than you are taking useless risk. There is a good chance that you are not going to make any money from those and you are putting yourself in incredible danger. It would be smarter if you could avoid that, and it would not make sense for you to do this.

If you could focus just on top ten, even there are stablecoins there, so take those out, and I do not personally like doge, so I would take that out too but that is personal preference, I do not like it because it's a memecoin but if you want to keep that then keep it. Then whatever is left is the decent ones and you should invest based on that, so that you could make some money.

I guess you are referring to top ten Alts listed on site like CMC. If that's the case, I agree with you that we must choose such Alts for investment. The crypto market is flooded with new Alts every day or week and it's difficult to say which one is legitimate and which one is not. Even if a new project is legitimate, there is no guarantee that it will go up in price. It's normal rule of every market that price will go up if demand surpasses the supply and in crypto market the number of alts are way more then there demand. That's why it's advisable to chose Alts with caution.     

[CoinAge.Cash]

there is no guarantee that it will go up in price. It's normal rule of every market that price will go up if demand surpasses the supply and in crypto.

So see with the ecosystem is that like the type of currency your coin would actually be worth? What does ecosystem actually mean and dont say utility.

If I was to start a Token (AltCoin) how would I know how many tokens (AltCoin) are available in the market or is mined?

[Hispo]

...
And to be honest, there are also others who are not serious about their project.

Because there are not fundamentals anymore behind those projects as it used to be when Bitcoin was launched and other alternative currencies were launched as well. Bitcoins has fundamentals, Litecoin has fundamentals as well, in the same manner Monero and Ethereum have their own fundamentals. But it seems nowadays it does not manner whether coins which are launched will ever solve a problem or not.
Even if there is some fundamentals being a project, the market is so full of mud and useless coins that it takes effort to investors to find actual gems to support with their money.

[adultcrypto]

Many crypto projects fail for many reason but I will highlight few of the reasons:

• Lack of utility: Many crypto projects fail because they are not solving any problem. The founders just cook up unrealistic ideas and the next thing they creat a token to raise funds with which they spend building no real product that is of market demand.
• Scam: Some crypto projects are created solely for the purpose of scamming people. The team knew that their project is a scam but they will make it to look real in the initial stage but with time it become obvious that it was all a scam.
• Incompetence: Some crypto projects were created for good purpose but due to incompetence of the team, the project dies and are not realized.

[GeorgeJohn]

The real reason why projects fail is because of,

1. We don't need another bitcoin.
2. We don't need another X coin.

That's not true, we need another coin that will compete with bitcoin so that they will be traffic and choice of coin that are more promising

The thing I have noticed that makes projects to fail, at first is sponsorship, ability to advertise the project to reach to the grass roots, so this are two things that makes a project to excel, but a process whereby a project is not meeting up the standards of already existing projects, it will make the project to fail. Because it will lack a  lot of traffic because the existing one is more promising or superior..so if you have a project you need to create awareness that will make the project to Skyrocket.

[NewRanger]

If you’re thinking about putting money into a new project, slow down. Check who’s behind it, read the whitepaper, see if the code is open source or audited, and ask yourself if the idea solves a real problem. Stick with teams that are visible, have experience, and show consistent progress instead of flashy marketing. Diversifying and only risking what you can afford to lose also helps you avoid getting wiped out by one bad bet.

Knowledge is a major issue for the cryptocurrency community, especially for beginners who only care about profit and returns.

Of course, there are quite a lot of them now, and we've seen many fake projects pop up, causing many people to lose their money. It's important to learn everything about the crypto market and increase our knowledge before joining the crypto market.

One tip is that if you already have a solid foundation, especially for the long term, you should keep the coins in your wallet if you're confident in their potential.

[Chonkler]

We actually found the problem and solved it!

https://bitcointalk.org/index.php?topic=5563899.msg65984018#msg65984018

https://medium.com/@anonwhale777/chonk-2d93c2cab01a

[Kelward]

...
And to be honest, there are also others who are not serious about their project.

Because there are not fundamentals anymore behind those projects as it used to be when Bitcoin was launched and other alternative currencies were launched as well. Bitcoins has fundamentals, Litecoin has fundamentals as well, in the same manner Monero and Ethereum have their own fundamentals. But it seems nowadays it does not manner whether coins which are launched will ever solve a problem or not.
Even if there is some fundamentals being a project, the market is so full of mud and useless coins that it takes effort to investors to find actual gems to support with their money.

There are too many scam projects in the crypto market and as more are being dumped into the market it will be affecting the reputation of cryptocurrency as a whole. Aside from Bitcoin and a few top altcoins that can be trusted to have fundamentals majority of them are just shitcoins projects that are used to spam the market and scam ignorant investors. Since there is no regulation in the crypto market we should always expect more garbage that are hyped to gather momentum and they will die as soon as the devs have had their fills. These shitcoins were doomed to fail from the onset so don't be alarmed when you see them fail eventually.

[virasog]

I guess you are referring to top ten Alts listed on site like CMC. If that's the case, I agree with you that we must choose such Alts for investment. The crypto market is flooded with new Alts every day or week and it's difficult to say which one is legitimate and which one is not. Even if a new project is legitimate, there is no guarantee that it will go up in price. It's normal rule of every market that price will go up if demand surpasses the supply and in crypto market the number of alts are way more then there demand. That's why it's advisable to chose Alts with caution.     

Yes, the investment in the top 10 or top 20 coins are relatively safer investment as we know that most of the projects are made to make money out of them and therefore they fail to grow.

Some last long only because the creators of those projects have the funds to keep the hype running and then rug pulls or leave the project. Most of these new altcoins have promising roadmaps but they never deliver. We only see the theories but the working project never builds. They take money from investors in the name of ICO and project development, and that's the business model through which they scam innocent investors and retailers.

[Odusko]

...
And to be honest, there are also others who are not serious about their project.

Because there are not fundamentals anymore behind those projects as it used to be when Bitcoin was launched and other alternative currencies were launched as well. Bitcoins has fundamentals, Litecoin has fundamentals as well, in the same manner Monero and Ethereum have their own fundamentals. But it seems nowadays it does not manner whether coins which are launched will ever solve a problem or not.
Even if there is some fundamentals being a project, the market is so full of mud and useless coins that it takes effort to investors to find actual gems to support with their money.

There are too many scam projects in the crypto market and as more are being dumped into the market it will be affecting the reputation of cryptocurrency as a whole. Aside from Bitcoin and a few top altcoins that can be trusted to have fundamentals majority of them are just shitcoins projects that are used to spam the market and scam ignorant investors. Since there is no regulation in the crypto market we should always expect more garbage that are hyped to gather momentum and they will die as soon as the devs have had their fills. These shitcoins were doomed to fail from the onset so don't be alarmed when you see them fail eventually.

Scam projects habe taken over the market right now, investors are losing they money on a constant basis and this is affecting the general market capitalization, since most Money that flow into the crypto market get flow into scammers pockets through their several scam projects, this shitcoins scheme have given the altcoins market a bad name and seems as a waste of time if you pay attention or invest in any of them.

[Josefjix]

Some last long only because the creators of those projects have the funds to keep the hype running and then rug pulls or leave the project. Most of these new altcoins have promising roadmaps but they never deliver. We only see the theories but the working project never builds. They take money from investors in the name of ICO and project development, and that's the business model through which they scam innocent investors and retailers.

Do people still fall under these ico scam tricks in the space, infact, any project that needs ico to strive from it's starting point is still not ready to grow in the crypto space, nowadays, there is no ico or any form of crowd funding. What actual matters are joint ventures coming into play or hidden the sales from everyone and keep it together with the insider sale.

It's not advisable to tell investors to get into it though, the best you could do is buy early before listings

[TastyChillySauce00]

Some last long only because the creators of those projects have the funds to keep the hype running and then rug pulls or leave the project. Most of these new altcoins have promising roadmaps but they never deliver. We only see the theories but the working project never builds. They take money from investors in the name of ICO and project development, and that's the business model through which they scam innocent investors and retailers.

Do people still fall under these ico scam tricks in the space, infact, any project that needs ico to strive from it's starting point is still not ready to grow in the crypto space, nowadays, there is no ico or any form of crowd funding. What actual matters are joint ventures coming into play or hidden the sales from everyone and keep it together with the insider sale.

It's not advisable to tell investors to get into it though, the best you could do is buy early before listings

ICO is mostly scam but IDO is thriving, crowdfunding through verified platform such as buidlpad, echo, binance pre-TGE and kaito launchpad.

Last time I see megaETH raised 1.4 Billion at max price with oversubscription model but capped to only take 50m, WLFI also raised more or less the same amount from BUIDLPAD.
It's pretty much still alive but i like to think of it as just marketing because they don't actually need to do that since they've got big investments. More of user acquisition and maybe to replace airdrop meta with IDO.

[WatChe]

Yes, the investment in the top 10 or top 20 coins are relatively safer investment as we know that most of the projects are made to make money out of them and therefore they fail to grow.

Some last long only because the creators of those projects have the funds to keep the hype running and then rug pulls or leave the project. Most of these new altcoins have promising roadmaps but they never deliver. We only see the theories but the working project never builds. They take money from investors in the name of ICO and project development, and that's the business model through which they scam innocent investors and retailers.

It's because of these reasons investors are no more interested in investing in new projects, no matter how much promising they are. ICO's got huge success in year 2017/18 but slowly investors realised that majority of them are useless. New projects are launched with cheap price to lure in investors and once the project got necessary funding they mostly disappear.

The top Alts are good for short term only and we must quit them as soon as we see good profit. For long term, I strongly recommend Bitcoin only because it has the potential to give you good return over a period of time. 

[Cyber_warrior]

The crypto market is flooded with new Alts every day or week and it's difficult to say which one is legitimate and which one is not. Even if a new project is legitimate, there is no guarantee that it will go up in price. It's normal rule of every market that price will go up if demand surpasses the supply and in crypto market the number of alts are way more then there demand. That's why it's advisable to chose Alts with caution.     

I don’t really trust any new coin entering the market, most of them are just shit coins and they won’t be surviving the market. Most of the coins entering the market right now are just created buy scammers, they pay people to hype the coin for them, immediately the hype dies down, then you will never see the coin rise again, people who bought will be at loss, and the developers will just move ahead to create another coin and they going to do similar thing. If you are planning to invest in altcoins, then it’s better to invest in coins that have been in market for years, it’s also risky, but it’s better than investing in new project.