2022 Killed 96 Crypto Projects Bringing Dead Project Financing to $3.6B
The year 2022 has been a near apocalypse for the crypto sector. The setbacks kept stacking up and the data reveals that 96 crypto projects have been declared dead in 2022. The collapse of the Terra (LUNA) ecosystem and the FTX crypto exchange are the events that shocked the industry to its roots.
According to a list compiled by RootData, a crypto analytics database, teams of 96 projects went to their homes as they were announced closed, bankrupt, or their websites unavailable for a long time. Of these 96 that were declared dead, 28 also received funding. This brings the total dead project financing amount to $3.6 billion.
Some big companies that announced dead include FTX and its subsidiary FTX US, Celsius Network, Alameda Research, BlockFi, Siacoin manager Skynet Labs, Voyager Digital, and many Terra-based projects.
FTX is the Most Funded Dead Project
Sam Bankman-Fried (SBF) recently collapsed crypto trading platform FTX was the most funded dead crypto project which received $1.73 billion from various investment giants including Coinbase Ventures, Pantera Capital, Multicoin Capital, Binance Labs, Circle Ventures, CoinFund, and more.
Furthermore, its subsidiary FTX US accumulated $400 million from the Ontario Teachers’ Pension Plan Board.
Celsius Network is another noticeable name in this list that was heavily funded by investors that include gumi Cryptos Capital, WestCap, and Canadian pension fund manager Caisse de dépôt et placement du Québec (CPDQ). The data available reveals it received $788 million from these investors.
As reported, crypto lending platform BlockFi filed for bankruptcy on November 29, 2022, as it was unable to bear the heat of the FTX fire. It accumulated about $500 million from major investors that include Paradigm, Arrington Capital, ConsenSys Mesh, Morgan Creek Digital, and Winklevoss Capital.
Voyager Digital, a Canada-based crypto-asset broker, is among the top-funded dead project that received $135 million from Alameda Research, Digital Currency Group (DCC), Galaxy Digital, Blockdaemon, Binance.US, and CoinLedger.
Most of the dead projects were affected by the collapse of Terra (LUNA) and the FTX. Overall, the total dead project financing amounts to $3.6 billion.
Failed Coins Count has Decreased in 2022
According to CoinGecko research published on November 29, 2022, 951 coins are dead in YTD. This number is way lower than 3,322 coins in 2021, and 1,320 in 2020. The data reveals that nearly 40% of coins listed during 2021’s bull market have been deactivated and delisted from CoinGecko.
The research says that,
“excluding the anomaly year of 2021, an average of 947 cryptocurrencies listed are dead and end up failing in the last five years, between 2018 to 2022.”