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RootData Analysis: Dead Crypto Projects and Value Loss

RootData’s report provides a detailed look at the collapses that occurred in the cryptocurrency industry in 2023. Leading names were among the projects that collapsed. Prime Trust, Gomu, GRO Protocol, Stelo, and Yield Protocol were once valuable and important projects, but they are now defunct.

Project Value Loss and Projects That Collapsed

In addition to projects like Gro Protocol (GRO), which is one of the key players in the DeFi world, and meme-themed projects like SafeMoon (SAFEMOON), many projects offering NFTs, cryptocurrency wallets, and DAO solutions were also added to the trash list. A total of $940 million in value was lost.

Similar Situations and Lessons from the Past

Similar collapses have occurred in previous years. It is known that large projects such as Terra (LUNA) and FTX have also faced similar situations. The volatility and rapidly changing nature of the cryptocurrency world is a warning that similar collapses could happen again.

Key Lessons: Sustainability and Functionality for Crypto

These collapses once again highlighted the importance of functional and sustainable projects in the cryptocurrency world. The importance of a solid business model and a long-term vision was emphasized, in addition to technological innovations.

Suggestions for Successful Projects

In order to be successful in the future, projects need to prioritize their ability to adapt to user needs, their reliability, and their long-term vision. A solid business model, in addition to technological innovations, is also emerging as one of the basic elements for success.

Investment Strategies and Risks in the Crypto World

The cryptocurrency world offers potential gains for investors, but it also carries high risks. With the lessons to be learned from past collapses, investors should pay attention to the sustainability, technological infrastructure, and financial status of projects.

Conclusion:

The future of the crypto world is focused on how projects will shape it with sustainability, user focus, and technological innovations. These collapses could also be a sign of a period in which the sector will learn from its mistakes and take more solid steps.

The post Dead Crypto Projects in 2023: $940 Million in Value Lost! appeared first on Coin Engineer.

In the past few days as the market started to rise, the risks of cryptocurrencies were once again made apparent.

The token for the decentralized financial protocol SafeMoon fell by 31% within five hours after the company behind it filed for bankruptcy.

SafeMoon officially filed for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” with the United States Bankruptcy Office on December 14. The voluntary petition was submitted by attorney Mark Rose and Judge Joel Marker was assigned to the case.

A screenshot of a letter written by the head of the company’s restructuring to the staff emerged on Reddit. The company could not pay its employees’ salaries any longer.

The document stated, “You will have to sue in bankruptcy court for your unpaid wages.”.

The final blow came just a month after the SEC accused SafeMoon. Founders Kyle Nagy, CEO John Karony, and chief technology officer Thomas Smith were charged with violating securities laws in an event described by the regulatory body as a “major fraud scheme”.

How much did SafeMoon fall?

The SafeMoon token dropped from $0.000065 to $0.000045, five hours after the news on December 14, at 20:24. But it rebounded to $0.000061 in just 10 minutes.

According to Coinmarketcap data, SFM’s market value which was once $1 billion, is now $34.5 million.

Multiple former SafeMoon supporters expressed their disappointment with the bankruptcy on Reddit. They also claimed that they had been deceived by the developers of SafeMoon.

Reddit user u/Jtenka:

“The truth is, everyone who supported and trusted SafeMoon, including the mods, was deceived by the developers of SafeMoon.”

Another Reddit user, u/anonyamon42069, said:
“I don’t even want to talk about how badly we have been deceived and especially about the money I spent. I have a message for the idiots who still think SafeMoon still has a chance and ‘is going to the moon’: Get help!”.

Santiago Melgarejo, a former immutable token analyst and salesperson at SafeMoon, pointed out that most employees worked for free for a month and there were “red flags” when they were suddenly fired.

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