ICOs were undoubtedly a hot trend back in 2017 and 2018 during the parabolic market movement and the subsequent decrease. Ever since then, their prominence has stalled and a recent report shows why that might be. Apparently, 640 out of 2000 reviewed ICOs haven’t added or written a single line of code in 2019 and in some cases, the lack of action is even more alarming.
ICO Projects Without Coding
A report from Coincodecap which looked at over 2000 cryptocurrencies revealed that 32% of them haven’t written or added a single line of code in 2019. Despite this absolute inactivity, their current market cap is more than $415 million.
Most of the inactive projects have been launched in 2018 with a few exceptions. The largest inactive project is called Proton and it saw its last days of coding exactly a year ago. Still, it has the largest market capitalization among inactive cryptocurrencies – $85 million. BQT follows with $45 million and Sprouts with $32 million – both without any code commits since 2018.
Exchanges with Most Listings
The report also shows which exchanges have listed most of the aforementioned projects. 12 of the exchanges in the report have listed more than 10 ICOs which lack any coding for a substantial period. The largest number of such coins have been listed on YoBit (62 total), followed by CoinExchange (39) and Crex24 (30).
It’s worth pointing out that some of those exchanges are charging a high fee when listing various coins as they don’t have enough revenue from trading, according to the report.
Regulations and Improvements
The document continues by proposing an introduction of “a self-regulatory market to perform its fiduciary duty and will not expose customers to these harmful assets.”
As CryptoPotato reported from the Ethereum summit, Vitalik Buterin offered a possible solution for the scammy nature of some ICOs:
“This is a spin on the ICO idea that I had one and a half years ago. So the idea is, instead of projects having ICOs where people will just send them the money, and they, well, go away, you have a scheme where people put their tokens into a smart contract. […] The developers don’t just have access to the tokens, they can’t take them. Instead what happens is the money gets put in a compound, or some other interesting thing […] and then the interest goes to the developers.”
The initiative dubbed by Buterin Public Interest Projects makes use of one of the hottest trends of 2019, namely, Decentralized Finance (DeFi).