“The United States is the undisputed leader in the number of scams among cryptocurrency projects. 5Money and Storible analysts came to this conclusion. The study covered the period from January 2022 to October 2024 and 1,544 companies. For each, a number of data were collected, including biographies of the founders. Analysts recognized projects with liquidity of less than $50,000 and daily trading volume of less than $1,000, whose official accounts in X are silent, as failures […]”, — write: businessua.com.ua
The United States is the undisputed leader in the number of scams among cryptocurrency projects. 5Money and Storible analysts came to this conclusion.
The study covered the period from January 2022 to October 2024 and 1544 companies. For each, a number of data were collected, including biographies of the founders.
Analysts considered projects with liquidity of less than $50,000 and daily trading volume of less than $1,000, whose official accounts in X have been silent for more than three months, and whose websites are unavailable, to be failures.
According to the report, 43% of all fraud schemes originated from the US. The second place was taken by China with a rate of 7.55%, and the third place by Great Britain with 6.51%.
Ranking of countries by the number of fraudulent crypto projects. Source: 5money.
The same trio leads in the number of failed initiatives: developers from the USA were involved in 33.36% of such launches, China — 7.63%, Great Britain — 7.22%.
Ranking of countries by the number of launched crypto projects that have already closed. Source: 5money.
The leadership of these three countries in the rankings, taking into account the absolute number of projects, is explained, in particular, by the fact that they accounted for the majority of launches.
In terms of the share of failures and scams from the total number of crypto-initiatives in the country, the situation looks different.
The rating by the share of fraud was led by the Russian Federation, where 24% of projects turned out to be fraud. Switzerland took second place with a figure of 22.22%, and China came in third with 19.83%.
Ranking of countries by the share of scams among crypto projects launched there. Source: 5money.
The country where the majority of projects failed was South Korea — the majority of initiatives “failed” there, and the share of failures was 59%. Singapore took second place with 53.75%, followed by Great Britain with 52.94%. In the Netherlands and Canada, exactly half of the crypto projects survived.
Ranking of countries by the share of failures among crypto projects launched there (does not include South Korea). Source: 5money.
The findings of this study are consistent with a joint report from AlphaQuest and Storible. It revealed that of the 12,000 projects launched since 2020, more than 70% have already closed. Of them, 60% stopped working in 2023.
More than 90% of failed projects faced low liquidity and trading volumes, which indicated a loss of interest on the part of investors.
For the same reason, about 60% of crypto projects launched before 2019 closed.
We will remind, in the 3rd quarter of 2024, inflows of venture funding into crypto startups decreased by 20% compared to the previous period, according to Galaxy Digital.
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