jakiro
Author: nancy, panews
On July 30, the Starknet ecological derivative DEX ZKX claimed that after the operation was seriously unbalanced, it would stop operation and was questioned and discussed by the community. It is necessary to know that the agreement was announced more than a month ago to obtain a strategic financing of $ 7.6 million.In fact, due to the tightening of funds, the risk of liquidity, and the prosperity of the industry, the survival index of encrypted projects has soared, even if the capital has been optimistic about the capital.According to the Coingecko report earlier this year, since 2024, 14,039 cryptocurrencies have been “dead”, with a percentage of more than 50%, and most of the projects appeared during the bull market from 2020 to 2021.During the last bull market alone, about 70%of the 11,000 encrypted projects have stopped operating.
This article Panews compiled the 35 “out” projects with a financing of over 5 million US dollars from last year. Among them, many projects that have been popular with well -known capital or back to giants mainly involve NFT, DEFI and games.And in these shutdown projects, there are veterans of Nikko West Mountain, and there are also rookies that have fallen suddenly. Most of them go to the end due to financial problems, market downturn, regulatory pressure, and low product adoption rate.
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Cumulative financing projects exceeded $ 1.1 billion,DEFI, NFT and Games are difficult to survive
Although the crypto market has moved towards the stage of capital “control”, financing alone does not mean that it can go through the bubble cycle smoothly.According to incomplete statistics of Panews, since 2023, 35 projects with more than 5 million US dollars in the crypto market have been shut down. The cumulative financing amount of these projects has been nearly 1.17 billion US dollars, with an average amount of approximately $ 34 million.Among them, the three projects with the highest financing are VOICE, Prime Trust and LINE NFT, respectively, and they have received a total of over $ 600 million in financing.
“The wind is refreshing for a while, and the resumption of the crematorium”, although there are not a few successful cases through the industry’s risk, the investment market is so cruel.Judging from the tracks of these closure projects, DEFI, NFT, and game areas are the first of them, which is the main narrative of capital betting.The number of failures in these three major fields accounted for 22.8%, 11.4%, and 8.5%, respectively, and the amount of investment was approximately US $ 170 million, US $ 530 million, and $ 35 million, accounting for about 62.8 of the total shutdown project financing.%.
Behind these high amounts of financing, there are many star -level VCs, such as Coinbase Ventures, Paradigm, Binance Labs, Sequoia China, Circle Ventures, Galaxy Digital, A16Z, Polychain, and the bankrupt Alameda Research and Three A. RROWS CAPITAL, etc.Coinbase Ventures, Alameda Research, Three Arrows Capital, and Polychain are even high incidences, and they have participated in at least 3 failure items. Of course, this also has an important relationship with their high -frequency investment activities.
In addition, from the point of view of the establishment of the timeline, the number of projects launched online from 2020 to 2021 was the highest, accounting for about 61.7%of the overall statistics, and received over 430 million US dollars of financing.Among them, 16 failure items came from 2021, mainly based on Defi and NFT projects.
Under the tide of encryption, these factors become the main fuse
In a rapidly changing crypto market environment, the failure case of these encrypted projects undoubtedly ring the alarm for the industry.On the whole, most of the projects are related to the market’s cold, financial dilemma, stricter supervision, and insufficient product penetration.
The degree of prosperity of the industry is an important factor affecting the survival and development of the project. Especially under the “cold winter” environment, successful “survival” has become a difficult problem in major projects.According to Panews statistics, at least 5 projects have to be stopped operating due to market conditions.
Take the NFT market as an example. As we all know, the NFT market after the retreat continues to show a downward trend, and the market demand has become increasingly sluggish.According to the recent report of the data tracking platform Cryptoslam, the current monthly sales of the NFT market have fallen to $ 393 million, and the minimum monthly sales since November 2023 appeared.Under the sharp shrinking of this transaction, the NFT market inevitably has a wave of stopping, even if many of them have a strong background background and huge financing.
For example, the Japanese communications giant LINE NFT market LINE NFT still terminated services after only two years of operation, which has been run for about $ 150 million;Since its establishment, it has stopped operations, which has also led to its investors including LG subsidiaries LG CNS, CJ OliveNetWorks, and SK SQUARE related company Dreamus, including DREAMUS, and other large Korean companies.It has been turned into Wuyou; RECUR, which has received $ 55 million in financing, has also been closed after more than two years of operation due to unpredictable challenges and changes in the business pattern of the NFT market.
At the same time, although financing can alleviate the “blocking point” of project survival and development to a certain extent, it is difficult to obtain continuous survival space in a lack of benign and running survival model.In Panews statistics, the reason for the closure of more than 7 projects from the expected income cannot cover the cost of expenditure or even exceed financing funds.
For example, ZKX obtained up to $ 12.1 million in the two rounds of financing, but still chose to stop operations due to the unable to find the economy and feasible path. According to its founder, ZKX’s decision to stop operation is based on several key factors, including user participation, including user participationExtremely low, TEGE has not been expected, etc., the platform’s income can hardly pay wages and other basic operating costs, and the current token value cannot continue to support the agreement.Of course, this status quo is related to the “resistance” of the current VC currency’s retail investors. In fact, the throwing pressure to be unlocked has made the VC coin increasingly losing the “people’s heart” in this round of bull market.”Invisible shackles”.
The same problem also appears on the mobile platform ClayStack. After more than 3 years of continuous operation and product audit of more than 6 times, and as well as a seed wheel financing up to $ 5.2 millionInsufficient degrees announced in May this year; the cross -chain liquidity aggregation agreement, which has obtained $ 1.2 million in financing, has also been terminated with the cost of the server because it cannot be affordable.
The financial dilemma has largely eroded project value to a large extent, and even faces the risk of closure.Among these failed items above, five projects are facing survival dilemma due to capital issues.For example, Jet Protocol, DAO Creation Platform, and DAO Creation Platform, such as Paradigm, and other projects, such as Jet Protocol, DAO creation platform, and Ascenders, all of which were closer.
In addition, regulatory compliance is also a major challenge facing encrypted projects.In fact, as the scale of the encrypted market grows, global regulatory sledgehammers have frequently attacked, related compliance requirements are becoming stricter, and the pressure on supervision and review facing related projects has gradually expanded.At least 5 items in statistical projects are finally closed due to regulatory factors.For example, NOCTURNE established in 2023, after obtaining Bain Capital Crypto, Polychain, Bankless Ventures, Hack VC, Robot Ventures, and Vitalik Buterin, it decided to gradually close in June this year. ThisIt decided that after the privacy agreement established earlier last year was stopped by supervision pressure from supervision, it was stopped.For another example, the encrypted investment application Pillow was forced to submerge in the historical torrent of encryption due to the uncertainty of regulatory supervision.
Of course, some black swan incidents such as loss of contact, hacking attack, and investing in mines in the core team also closed down.In these 35 closing projects, many projects have closed down without warning, and some of them have brought huge losses to investors.For example, the Yuan -Universe game ecosystem Dehorizon and the Yuan universe project PAX.WORLD have not issued any announcements. The tokens are almost zero or even the centralized exchange.
It is worth mentioning that although after the closure of different reasons, compared with the direct RUG project, some of the active closing projects also given a positive good after -to -good plan.In the user’s trading account, LINE NFT will return all the asset sales assets after closing.
