RootData, known for comprehensive insights into digital finance industry companies, has unveiled a comprehensive list of crypto projects that ceased operations or declared bankruptcy in 2023, shedding light on the industry’s failed ventures.
Among the notable names in RootData’s list of 116 deceased crypto projects were prominent entities like Prime Trust, Yield Protocol, Wyre, Multichain, and Clockwork. These projects reportedly announced closures or bankruptcies in 2023, with their online presence remaining inactive for an extended period.
Analysts at RootData emphasized that the combined funds initially allocated for these “dead projects of 2023” surpassed a staggering $940 million, marking a substantial loss within the crypto landscape.
The latter half of 2023 witnessed a tumultuous period for the industry, marked by high-profile failures. Wyre, a payment platform, shuttered operations at the end of June, attributing the closure to fallout from the crypto winter and Bolt Financial’s withdrawal from a potential purchase. Multichain, following the arrest of its founder and security breaches, declared bankruptcy in July.
The downfall continued as Prime Trust, a custodial service for crypto, faced financial hurdles, leading to its declaration of bankruptcy in August. Simultaneously, Clockwork, a Solana blockchain-based smart contract automation project, ceased operations due to what it termed “limited commercial potential.”
In October, DeFi crypto lender Yield Protocol joined the list of closures, citing a “lack of regulatory safety and sustained demand for fixed-rate borrowing” as reasons for its cessation of operations.
Interestingly, 2023 also marked a year of recovery for the cryptocurrency market, with its capitalization more than doubling from $830 billion to the current $1.66 trillion. Analysts at Bitfinex are optimistic, predicting that the cryptocurrency market capitalization could soar to a substantial $3.2 trillion in 2024.
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