Crypto Projects Face 50% Failure Rate Since 2021, Impacting Investor Confidence
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Failure Rate Warning: Since 2021, nearly half of over 7 million cryptocurrency projects have been classified as failures, with CoinGecko reporting 3.7 million tokens ceasing trading, highlighting extreme market instability that could undermine investor confidence in the altcoin sector.
- Market Bubble Risks: Reports indicate claims of 13 million failed crypto projects since 2021, although CoinGecko confirms 11.6 million failures, suggesting that exaggerated headlines may mislead investors and increase speculative risks in the market.
- Investor Confidence Shaken: The significant number of failed micro-tokens and meme coins has severely impacted investor confidence in the crypto market, particularly in the altcoin space, emphasizing the risks associated with speculative investments in less established digital assets.
- Regulatory Outlook: With rising failure rates, the market may face increased regulatory scrutiny, and Binance has indicated a focus on product-market fit and long-term roadmaps to address the challenges posed by these failures.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
