Thousands of Cryptocurrency Coins Go Bankrupt, What Really Happened?
Maria Chiquitita, CNBC Indonesia
May 24, 2025 12:00 PM
Photo: REUTERS/Dado Ruvic
Jakarta, CNBC Indonesia - The cryptocurrency industry is not always filled with profits but also carries significant risks for investors. One of these risks is the abundance of coins or tokens with unclear origins and purposes, leading to a lack of interest. The phenomenon of failure or "bankruptcy" of crypto projects is becoming more frequent, making it essential for investors to be cautious.
Since the explosion of coin launches in 2020-2021, thousands of new projects have emerged without a strong foundation. Many of them are created merely to follow a passing trend, without a real product or a competent development team. This condition causes many projects to be unable to survive long in a highly competitive market.
Additionally, the lack of regulation allows space for non-transparent projects or even scams to thrive. Such projects often suddenly disappear after raising funds from investors, leaving significant losses behind.
The volatility of the crypto market also exacerbates the situation. When prices undergo corrections, financially and technically weaker projects easily go bankrupt. Furthermore, the fierce competition among similar projects means that only a handful can survive and grow.
This condition marks a process of "natural selection" in the crypto world, where quality and innovative projects will survive, while others must be willing to "die." However, for novice investors, this situation can be a trap if they do not conduct thorough research.
Therefore, it is highly recommended to always check the track record of the development team, the project's objectives, and technological advancements before investing. Do not be easily lured by promises of quick profits without real evidence.
Maria Chiquitita, CNBC Indonesia
May 24, 2025 12:00 PM
Photo: REUTERS/Dado Ruvic
Jakarta, CNBC Indonesia - The cryptocurrency industry is not always filled with profits but also carries significant risks for investors. One of these risks is the abundance of coins or tokens with unclear origins and purposes, leading to a lack of interest. The phenomenon of failure or "bankruptcy" of crypto projects is becoming more frequent, making it essential for investors to be cautious.
Since the explosion of coin launches in 2020-2021, thousands of new projects have emerged without a strong foundation. Many of them are created merely to follow a passing trend, without a real product or a competent development team. This condition causes many projects to be unable to survive long in a highly competitive market.
Additionally, the lack of regulation allows space for non-transparent projects or even scams to thrive. Such projects often suddenly disappear after raising funds from investors, leaving significant losses behind.
The volatility of the crypto market also exacerbates the situation. When prices undergo corrections, financially and technically weaker projects easily go bankrupt. Furthermore, the fierce competition among similar projects means that only a handful can survive and grow.
This condition marks a process of "natural selection" in the crypto world, where quality and innovative projects will survive, while others must be willing to "die." However, for novice investors, this situation can be a trap if they do not conduct thorough research.
Therefore, it is highly recommended to always check the track record of the development team, the project's objectives, and technological advancements before investing. Do not be easily lured by promises of quick profits without real evidence.