800+ Cryptocurrencies Are Now Done And Dusted; Bitcoin Falls By 70%

To say that 2017 was the year of cryptocurrencies especially Bitcoin would not be wrong. The year saw the rise of many cryptocurrencies with many performing exceptionally well. Initial coin offering begot a host of cryptocurrency projects over the course of past 18 months.

According to Dead Coins, a website which keeps track of ICO exit scams and extinct coins, more than 800 cryptocurrencies have ceased to exist indicating a burst in the bubble regarding digital currencies.

A hefty amount of $3.8 billion was raised via ICOs in 2017, and the stats have shot up to $11.9 billion in the year 2018. Many emerging companies created their own digital currencies via the process of ICO which could be used by investors on company’s products. The main reason behind the massive amount raised in ICOs is the fact that these new digital currencies are cheap and investors believe that it could fetch them good returns in future.

Bitcoin has suffered from the downfall of cryptocurrency this year. Its value reached its all-time highest in the year 2017 amounting to $20,000. In 2018, the price of Bitcoin has dipped 70% since its highest. This is accompanied by the exit of over 800 cryptocurrencies from the market.

A report by CNBC compares this downfall with the Nasdaq’s steep fall in 2000. When Nasdaq dipped, it took along many companies during the dotcom boom.

Recent incidents of hacking of two South Korean cryptocurrency exchanges has further aggravated the situation.

Despite the falling values of cryptocurrencies, many still believe that the industry will revive. Bitcoin Mercantile Exchange or BitMEX’s CEO and co-founder Arthur Hayes said in an interview to CNBC that “the popular digital coin will reach $50,000 by the end of the year.”

What do you think about this? Express your views in the comments.