The year 2022 was particularly tough for the cryptocurrency industry as failures continued to pile up, killing dozens of crypto projects regardless of the amount of money invested in them, including the collapse of the Terra (LUNA) ecosystem and the FTX crypto exchange.
A third of crypto projects disappeared in 2022! – Will there be a sequel?
Indeed, according to the “Crypto Industry Dead Project List 2022” published by crypto analytics, 28 out of 96 cryptocurrency projects declared “dead” this year have received funding, bringing the total amount of “dead” project funding to $3.61 billion.
Most ‘dead’ project funds went to FTX
Among the biggest beneficiaries of these investments is the recently crashed crypto trading platform FTX, which has raised $1.73 billion through various funding rounds from investors including Coinbase Ventures, Binance Labs, Pantera Capital, Paradigm, Sequoia Capital, and others.
Meanwhile, for regulatory reasons created in the state of California to facilitate access for United States residents, its subsidiary, FTX US, received a $400 million inflow from the Ontario Teachers’ Pension Plan Board.
Beginning in July 2020, the now-bankrupt crypto lending platform Celsius Network has received a total of $788.8 million from investors, including equity firm WestCap and Canadian pension fund manager Caisse de dépôt et place du Québec (CPDQ).
BlockFi is another failed crypto borrowing platform accused by the US Securities and Exchange Commission (SEC) of providing unregistered securities while offering floating interest payments. This platform has received a total of $499.85 million from major investors such as ConsenSys Mesh, Morgan Creek Digital, and Winklevoss Capital.
Finally, crypto asset broker Voyager Digital is another competitor that managed to attract $135 million in investments from Alameda Research, Galaxy Digital, Binance.US and Digital Currency Group before filing for Chapter 11 Bankruptcy Protection in early July.
‘dead’ coins in 2022
Meanwhile, the number of digital assets listed on the crypto tracking platform CoinGecko declared ‘dead’ in 2022 rose to 951 as of the end of November.
According to the platform’s data, an average of 947 cryptocurrencies listed each year between 2018 and 2022 were deactivated from CoinGecko, excluding 2021, the year of the anomaly.
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