The fall of the cryptocurrency market led to a decrease in the activity of traders. 12,100 tokens and cryptocurrencies in 2022 received the status of zombies – no transactions were made with them for more than a month.
According to Nomics analysts, 2022 was a record year for the number of “zombie tokens”. Most cryptocurrency projects issue their own tokens, and often even several different types of tokens. But during the fall of the cryptocurrency market, investors and traders are trying to get rid of little-known digital coins in order to protect themselves from falling assets.
Representatives of Nomics emphasized that there were too many shocks this year – the collapse of the Terra ecosystem, the bankruptcy of the hedge fund Three Arrows Capital and the crypto lender Celsius. During such events, traders try to be careful and avoid little-known and low-liquid tokens.
“During the bull run in 2021, there was a lot of money in the crypto industry, it attracted attention and liquidity for new and existing projects. However, during a long bearish trend, even good and useful projects experience difficulties, as they lose access to capital and funding,” argues CryptoCompare analyst Jacob Joseph.
Of course, the vast majority of these “zombie tokens” are extremely small personal projects made for interest, or short-term assets for margin trading. The Nomics platform currently tracks 64,400 assets, of which only 13,800 traded last week. Among these tokens, there are many assets that are extremely close to zombie status.
Cryptocurrency investor Aaron Brown is sure that such half-dead projects and tokens will become more and more. To launch your own project and token, you do not need a large team, office or real estate. Accordingly, many will sink into oblivion as quickly as they appeared. However, Brown notes, in the cryptocurrency space there is no limit on the number of different tokens, so this is a natural process.
Earlier, Forbes reported that cryptocurrency exchanges counterfeit more than 50% of the trading volume of digital assets.
Source: Bits
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