Thousands of Cryptocurrency Coins Go Bankrupt, What Really Happened?
Maria Chiquitita, CNBC Indonesia
May 24, 2025 12:00
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 them is the numerous coins or tokens whose origins and purposes are unclear, resulting in 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 solid foundation. Many of them are merely created to follow fleeting trends, without actual products or competent development teams. This situation causes many projects to struggle to survive in a highly competitive market.
In addition, the lack of regulation allows space for non-transparent projects or even fraud to thrive. Such projects often disappear suddenly after raising funds from investors, leaving behind significant losses.
The volatility of the crypto market further exacerbates the situation. When prices undergo corrections, projects that are financially and technically weak can easily go under. Furthermore, the intense competition among similar projects means that only a handful can survive and thrive.
This condition marks a process of "natural selection" in the crypto world, where quality and innovative projects will endure, while others must resign to "die." However, for novice investors, this situation can become a trap if thorough research is not conducted.
Therefore, it is highly recommended to always check the track record of the development team, the project's goals, and technological advancements before investing. Do not be easily swayed by promises of quick profits without real evidence.
Maria Chiquitita, CNBC Indonesia
May 24, 2025 12:00
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 them is the numerous coins or tokens whose origins and purposes are unclear, resulting in 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 solid foundation. Many of them are merely created to follow fleeting trends, without actual products or competent development teams. This situation causes many projects to struggle to survive in a highly competitive market.
In addition, the lack of regulation allows space for non-transparent projects or even fraud to thrive. Such projects often disappear suddenly after raising funds from investors, leaving behind significant losses.
The volatility of the crypto market further exacerbates the situation. When prices undergo corrections, projects that are financially and technically weak can easily go under. Furthermore, the intense competition among similar projects means that only a handful can survive and thrive.
This condition marks a process of "natural selection" in the crypto world, where quality and innovative projects will endure, while others must resign to "die." However, for novice investors, this situation can become a trap if thorough research is not conducted.
Therefore, it is highly recommended to always check the track record of the development team, the project's goals, and technological advancements before investing. Do not be easily swayed by promises of quick profits without real evidence.