Why do many new crypto projects fail?

[Odusko]

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.

DYOR is highly important before we trust and invest in any project, because majority of time, most investors put their money down based on market hypes, this hypes make them to jump on wrong project, and what I have also come to realize is that, coins that have large market capitalization often time don't succeed well in the market and at some point, those smaller markets cap coin easily pick up in the market if their have a good team behind them, no struggle but following road maps.

[Bushdark]

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.

We keep seeing new projects in the market looking for investors to buy them without meaningful use cases. These projects are look for us to invest when the teams are not ready to work on their community so that they can have vibrant and support communities.
Major shitcoins we are seeing in the market don't have a community they have built that will always support them and this has been the reason why they are so many weak tokens in the market without a good charts. There some you can not trade them because they are stagnant without a volatile movement in price.

[Balmain]

Thousands of coins have been produced in recent years. It wasn't like this before, there were very few projects, far fewer than today, and the successful ones were the ones who stood out. Now, there are so many new coins, and it's rare to find one that's good and successful. Isn't it obvious that most of them have the goal of just floating around for a bit and then pulling the plug on it?

[atookz]

As far as I know, many new cryptos are created simply to follow trends. As you mentioned, without a competent development team and a real product, these projects inevitably won't survive long in the market. Furthermore, the difficulty of attracting a large number of interested parties is also a reason why new cryptos fail. This is perhaps a natural selection process in the crypto world, projects that lack innovation will inevitably have a short lifespan, while projects with high-quality innovations have a better chance of surviving.

[TastyChillySauce00]

As far as I know, many new cryptos are created simply to follow trends. As you mentioned, without a competent development team and a real product, these projects inevitably won't survive long in the market. Furthermore, the difficulty of attracting a large number of interested parties is also a reason why new cryptos fail. This is perhaps a natural selection process in the crypto world, projects that lack innovation will inevitably have a short lifespan, while projects with high-quality innovations have a better chance of surviving.

High quality project really hard to come by, last time I see it's Ethena for delta neutral stable and then HL. Then there are thousands of low value project appearing.

Some even don't have product but just a whitepaper and have the guts to do TGE selling tokens to retailers. It could be the side effect of the bullrun allowing grifters into space.
I'm currently holding off from adding more altcoins to my portfolio as well. I just don't think they're worth it.

[NewRanger]

Thousands of coins have been produced in recent years. It wasn't like this before, there were very few projects, far fewer than today, and the successful ones were the ones who stood out. Now, there are so many new coins, and it's rare to find one that's good and successful. Isn't it obvious that most of them have the goal of just floating around for a bit and then pulling the plug on it?

That's the problem: they're being created all the time, without pause, and most are scams. This is very different from older coins/tokens, which, despite their price fluctuations, still earned the trust of their users.

Certainly, as long as our assets are good projects, I'm confident their prices will recover when the crypto market recovers. During this crisis and ongoing recovery, prices are seen not only for small coins, but also for major coins like Bitcoin, Ethereum, Litecoin, and many others, dropping drastically. Moreover, the value of new coins plummeted significantly yesterday afternoon.

It seems the public is hoping for change and hope, along with a bullish trend, that the process will be swift and there won't be much more bad news, whether from the macroeconomic perspective or from several government policies that lead to negative sentiment, causing the crypto market to crash and BTC to correction again.

[justdimin]

they're being created all the time, without pause, and most are scams. This is very different from older coins/tokens, which, despite their price fluctuations, still earned the trust of their users.

Certainly, as long as our assets are good projects, I'm confident their prices will recover when the crypto market recovers. During this crisis and ongoing recovery, prices are seen not only for small coins, but also for major coins like Bitcoin, Ethereum, Litecoin, and many others, dropping drastically. Moreover, the value of new coins plummeted significantly yesterday afternoon.

It seems the public is hoping for change and hope, along with a bullish trend, that the process will be swift and there won't be much more bad news, whether from the macroeconomic perspective or from several government policies that lead to negative sentiment, causing the crypto market to crash and BTC to correction again.

I do not deny the fact that there are projects which has done good, there is no doubt about that, but how can I know which one is good when there are thousands of bad ones out there? On top of that what if the good one fails eventually and drops too, even if not a scam. So that means tens of thousands of projects gets created and only a few of them does good.

This is why I do not really think we should be investing into anything like these, we should stay away from them as much as possible. I know this is not going to be easy, but this is the way we should look into these. It's a tough period to be in, but the reality we are in. Avoid all new projects and just focus on the ones that already did good, like top 20 or so.

[AlikXandro]

It's better to ask what you'll do when you get fucked  https://bitcointalk.org/index.php?topic=5545132.0

[markm]

What I have always found best is not to assume someone else is going to make a coin or token useful or successful but, rather, to focus on ones that one can actually "adopt", ones of a scale where one's own resources can carry them even if no-one else does, it doesn't take a huge community of long term serious people really to build up a coin over the decades, it just might take decades but so what, if one is building generational wealth?

I look at things like how poorly IXCoin and I0Coin are still doing on FreiExchange and just wish I was making more bitcoin elsewhere to be able to buy up all those insanely cheap IXC and I0C because the Galactic Milieu has its calculated values of those coins and so far quantum computing is still not here yet so there is still a decent chance it will render them valuable enough in time enough to get them updated to post-quantum mode in time for them to weather that projected crisis too and keep on keeping on.

Those to me are still "new" crypto projects, over a decade old sure but still new because still they are in the initial phase, the phase of building strong buy-side order-books supporting on spot markets the calculated values calculated from their "treasuries".

The whole "treasuries" idea is still new really, still in prototype phase, not yet "proven" enough to bother trying to make them deterministic using smart contracts or suchlike.

If you lot haven't yet managed to stabilise and build strong buy-sides for new projects that are already over one decade old it seems silly to wonder why ridiculously new ones not even one single decade old yet so often fail, heck it is because you haven't yet spent even one single decade working on them yet duh! Put in the time!

If you want something only months old check out DMD Diamond, its new few months old version 4 is awesome, seven years in the making, tokenomics still the same since way back in 2013 or so but now up to version four, now that is a new version but of an "oldie but goodie" chain!


-MarkM-

[Radin]

"Why do many new crypto projects fail?"

Answer is simple, because there are way to many crypto projects

Look at the number of existing altcoins today, then compare it to the number of altcoins at previous cycles.

Dilution is the problem..

[TastyChillySauce00]

"Why do many new crypto projects fail?"

Answer is simple, because there are way to many crypto projects

Look at the number of existing altcoins today, then compare it to the number of altcoins at previous cycles.

Dilution is the problem..

Beside dilution it's also because majority of altcoin projects are just cash grab, a way for the developer to create money out of thin air through TGE.
Almost every single altcoin I see this year going down 80% from ATH immediately just days after TGE. Some even dumped minutes after TGE. It's cash grab and scam scheme.

[GigaBit]

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

Currently, the number of altcoins in the crypto market is about 19000. Since all these coins are in the market, there is no trust from investors. Moreover, there is not enough money to trade all coins, which is why those coins easily die. Some projects may survive in a short time and some for comparatively longer but they will not survive in the market in the long term. If the projects are normal, then death is certain, and if they can compete with good projects, then they will exist. There are very few projects in the market that have good intentions, but they cannot create complete trust from investors, which is why the possibility of losing altcoins becoming dead is approximately certain.

[Baki202]

DYOR is highly important before we trust and invest in any project, because majority of time, most investors put their money down based on market hypes, this hypes make them to jump on wrong project, and what I have also come to realize is that, coins that have large market capitalization often time don't succeed well in the market and at some point, those smaller markets cap coin easily pick up in the market if their have a good team behind them, no struggle but following road maps.

When you do DYOR about a project, it saves you a lot, and this is why a lot are always investing in projects that will fail, so they need to do better to make a good inquiry about every project you are investing in before you start, because you will see a lot of reviews about what it is about, and on their roadmap a lot of things will be discovered, not just relying on the hype of the project alone, because most projects, when they get hyped, the next thing they are losing liquidity and you as an investor will get liquidated.

Large capitalization is actually very important, and even with the large capitalization, they need to put a lot of factors into consideration so that people will buy and hold, and when developers know what they are doing also there is no way that the project will not succeed. A lot of things make a project succeed, and it's a collective effort, everyone has a role to play.  And if they are executing everything according to the road map, then they should not be having any form of problem, and experience matters a lot when it comes to all this.

[centrum]

scam projects did not only come now they came before too. the reason is weak roadmaps and weak teams. people who plan to scam create projects with that plan from the start. now most projects come with ai stories that have no real value. their goal is to take money from normal people. some people invest in these projects because of extreme greed and in the end they lose all their money. i do not understand how they invest without any analysis. if all investors became aware these scam projects would not be able to achieve their goals.

no project would fail if everything was right and their target was clear. but when the people running a project scam on purpose of course the project will fail. to take a project to its final stage you need a lot of money knowledge and hard work. but most of the projects that come now do none of that. they just get listed on some small exchange create a little volume and show it to normal traders. when normal traders buy it the project team sells all their tokens. that is how the project becomes a scam. so we have to stay away from these scam projects. and the people who build them if they succeed once they keep making scam projects again and again.

[SOKO-DEKE]

DYOR is highly important before we trust and invest in any project, because majority of time, most investors put their money down based on market hypes, this hypes make them to jump on wrong project, and what I have also come to realize is that, coins that have large market capitalization often time don't succeed well in the market and at some point, those smaller markets cap coin easily pick up in the market if their have a good team behind them, no struggle but following road maps.

Honestly,the reason why most people are failing in crypto industry is that they don't alway do their own research, but just following what some set of people are saying about projects and that is a very wrong decision because those people some investors may be following their advise sometime may be a influencers which are been paid to work for projects and they do their job,and get people convince to invest in the project by hyping the the projects.

But when someone do it own research it will found the truth whether the project worth investing or not.the point is that most the project with large market capitalization are less risk than those with small market capitalization despite their not always pick like those with small capitalization,it is not even easy nowadays to found projects with small market capitalization most them always ended to be a scam.

[Kelward]

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.

We keep seeing new projects in the market looking for investors to buy them without meaningful use cases. These projects are look for us to invest when the teams are not ready to work on their community so that they can have vibrant and support communities.
Major shitcoins we are seeing in the market don't have a community they have built that will always support them and this has been the reason why they are so many weak tokens in the market without a good charts. There some you can not trade them because they are stagnant without a volatile movement in price.

This is why the name SHITCOINS is befitting for them, they are just being pumped into the market to scam newbies and gamblers who wants to get rich quick on the short term. You shouldn't be surprised that new projects fails because many people are becoming aware that they are scams and they are no longer being enticed by the hypes like before. I'm glad for Bitcoin that is different from shitcoins, it is the only cryptocurrency that has lived up to expectation as a store of value, if you want a project that will give you peace of mind you better buy and hodl Bitcoin.

[Tigerheart3026]

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".

recently a project listed on the market and they also raised 16m$ may be, then they listed on various exchanges (cexs,dexs), it’s looks big successful project because token sold in very short time, irys allocated big number of tokens for airdrop hunter but when time is came, teams claimed 80% of airdrop tokens and they sold it worth of 4m$, only 20% tokens distributed in airdrop. it’s unbelievable how a big project team greedy like that, i know some good projects killed by their team, they raised big amount but not get listed on good exchanges.

[suhadi88]

As far as I know, many new cryptos are created simply to follow trends. As you mentioned, without a competent development team and a real product, these projects inevitably won't survive long in the market. Furthermore, the difficulty of attracting a large number of interested parties is also a reason why new cryptos fail. This is perhaps a natural selection process in the crypto world, projects that lack innovation will inevitably have a short lifespan, while projects with high-quality innovations have a better chance of surviving.

Not only that, they don't want to think long-term, only wanting a momentary hype and then running away. Usually, those are meme coins, and if there's a model like that, it's better to ignore them, because it will only lead to frustration after we buy. Although occasionally, if they're feeling down and pumping, the results are quite good, but it's just a matter of luck if you get it; otherwise, you'll only see losses.

[Stormisover]

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.

Every old coins was once new in the market and they were able to stay maybe they have good uses case and serving a reasonable purpose and or not design for to be a scam on the short term, when it comes to trust for me no altcoins worth my trust instead dealings should be on low expectations, alot of people likes it when it is new so they can benefit from it before it gets hot or burnt while others likes it when it has become old and stay test of time, it is all a matter of what suits your risk level since you are will be responsible for your actions.

[tech30338]

As far as I know, many new cryptos are created simply to follow trends. As you mentioned, without a competent development team and a real product, these projects inevitably won't survive long in the market. Furthermore, the difficulty of attracting a large number of interested parties is also a reason why new cryptos fail. This is perhaps a natural selection process in the crypto world, projects that lack innovation will inevitably have a short lifespan, while projects with high-quality innovations have a better chance of surviving.

Not only that, they don't want to think long-term, only wanting a momentary hype and then running away. Usually, those are meme coins, and if there's a model like that, it's better to ignore them, because it will only lead to frustration after we buy. Although occasionally, if they're feeling down and pumping, the results are quite good, but it's just a matter of luck if you get it; otherwise, you'll only see losses.

Mostly they are just trying to lure investors and then run with the funds, i see some projects did this to their investor, at the start they were trying their best to prove that they were legit, and once the investors trust them, they try to run, or sometimes projects lacks support or partnership sometimes hinder their moves, because they don't match on what they want in the future, there are lots of things that contribute to the failure of the projects this are just some.