A new study by Invest in a Blockchain, a startup founded in 2017, continues to elicit mixed reactions by suggesting that up to 60% of the top 100 cryptocurrencies have no working product. According to the study, only 40 of the top 100 cryptocurrencies seem to provide real added value to the public.
Invest in a blockchain study
Some of the cryptocurrencies that have reached the mark include Bitcoin, Ethereum, Bitcoin Cash, Ripple, Augur, Nano, Monero, and Zcash, among others. The biggest casualty in the study was Dash, who missed the mark even on his Pivx fork joining the exclusive roster.
The study continues to elicit mixed reactions in part because it is still unclear whether the criteria used to evaluate projects are the acceptable standard. However, the study authors insist that certain standards were applied at all levels to reach the final decision.
A functional product according to Invest in Blockchain is an active product and accessible to the public. It should also have a mainnet which, in addition to being active, has been upgraded several times and is well above version 1.0. Businesses, as well as people, are also expected to use the underlying product on a daily basis, be it a DApp, smart contract, or digital currency.
According to Invest in Blockchain, simply taking into account that a project is open source and built on the blockchain does not reach the threshold to assert a functional product. Some cryptocurrencies claim to have a working product just because it’s in the public domain, but no one has ever used it.
Crypto Scam and Fraudulent Projects
The fact that projects with functional products also had to deal with a series of vulnerabilities shows that it is not easy to have a functional product in the industry. The Verge Network is one such project that was forced to fork its network after a hacker exploited some loopholes and walked away with tokens worth around $ 1.7 million.
Bancor has come under pressure following a hacking incident that resulted in the loss of Ethereum tokens worth $ 12.5 million
While the results are shocking, they come at a time of growing concern about fraudulent projects and scams in the cryptocurrency space. Recent studies have shown that up to 80% of ICO projects conducted in the last year have collapsed or face an uncertain future as they have no tangible product to hold onto.
“If you haven’t met at least a handful of people who are cynical about the state of the blockchain industry and think it’s mostly scams and vaporware, well… you don’t ‘probably not been in crypto for very long,’ John Bardinelli and Daniel Frumkin wrote in the to study.