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Over 800 cryptocurrencies are now dead and worth less than one cent as bitcoin comes off its peak price of near $20,000 from December by 70%.
New digital tokens are created through initial coin offerings but some of these projects have been scams and many have not materialized into real products, CNBC reports.
The current instability involving cryptocurrencies has been likened to some of the companies that crashed during the dotcom boom back in 2000.
From CNBC:
ICOs are incredibly risky investments and there is a lot of fraud in the space. Earlier this year, CNBC reported on a scam ICO called Giza. The fake start-up ended up running off with $2 million of investor money. Still, many advocates see a future for ICOs as an alternative to initial public offerings and venture capital funding.
Cryptocurrencies have come under a lot of pressure but there's still optimism that regulators could look more favorably towards them and that could boost participation in the market. Arthur Hayes, CEO of cryptocurrency exchange BitMEX, told CNBC's "Fast Money" on Friday that bitcoin could climb to $50,000 by the end of the year.
- Aaron Goldstein, Gambling911.com
