The cryptocurrency market is experiencing rapid expansion; however, a troubling trend has emerged that highlights the ephemeral nature of many new tokens. According to research conducted by CoinGecko, approximately 1.8 million crypto tokens were effectively abandoned during the first quarter of 2025. This figure represents nearly a quarter of all tokens launched since 2021, marking a record high for project failures in a single quarter.
Since 2021, CoinGecko has tracked about 7 million cryptocurrencies, with over half—around 3.7 million—having ceased to exist. These abandoned tokens are emblematic of the volatility characteristic of the crypto landscape, particularly within the altcoin sector, where often the hype associated with new projects surpasses their substantive value.
Shaun Paul Lee, an analyst at CoinGecko, pointed to the recent surge in token failures as being significantly influenced by platforms like Pump.fun. Launched in early 2024, this tool allows users to create tokens with minimal effort, which has sparked an unprecedented wave of memecoin and low-effort token creation. While the platform has democratized access to tokenisation, it has also considerably lowered the standards for sustainability and long-term value.
The year 2024 saw the creation of over 3 million new tokens, making it the most active year for cryptocurrency launches. However, as Lee notes, a majority of these tokens created via Pump.fun face a failure rate nearing 98%. This indicates that most of the tokens generated were likely scams, abandoned projects, or simply failed marketing ploys.
This burgeoning divide within the cryptocurrency ecosystem is becoming increasingly apparent; on one side are credible projects focused on building infrastructural tools and utilitarian applications, while on the other are hastily launched tokens that capitalise on fleeting internet trends, often lasting only a few days or weeks. The impending introduction of regulatory measures in key markets may serve to heighten the pressure for developers and platforms to prioritise quality over quantity as the market matures.
The dramatic rise and subsequent fall of these tokens not only illustrate the accessibility of blockchain development but also raise substantial questions surrounding investor protection, project clarity, and the overall credibility of cryptocurrency markets. With more than a million projects disappearing within just three months, discussions are surfacing regarding the necessity of re-evaluating the industry's open-door innovation model to better safeguard stakeholders and retain market integrity.
Source: Noah Wire Services