Loading...

The crypto industry faces significant setbacks as 2023 sees over 150 projects shut down

crypto

Most read

Loading Most Ready posts..

TL;DR

  • Over 150 crypto projects, including Prime Trust, Wyre, Multichain, Clockwork, and Yield Protocol, closed in 2023, losing nearly $940 million.
  • Wyre shut down due to market challenges, Multichain closed amid legal issues, and Prime Trust went bankrupt.
  • Clockwork stopped development due to limited potential, and Yield Protocol closed due to regulatory issues and low demand.

In a recent report published by RootData, a reputable crypto project data provider, alarming statistics have surfaced regarding the fate of cryptocurrency projects in 2023. The “2023 Crypto Dead Projects List” report sheds light on a troubling trend in cryptocurrency, with more than 150 projects either closing down, declaring bankruptcy, or becoming dormant. Among the notable casualties are Prime Trust, Yield Protocol, Wyre, Multichain, and Clockwork, with a staggering cumulative financing loss of approximately $940 million.

Wyre’s crypto payment platform shuts down amidst market turbulence

In June 2023, Wyre, a blockchain-based payment platform, succumbed to the ongoing challenges of the crypto winter and announced its closure. Earlier in January, the company had informed its employees about the possibility of shutting down, following Bolt Financial’s decision to withdraw from its plan to acquire Wyre. This sudden turn of events left Wyre with no other option but to cease operations.

Multichain, another crypto project, faced a major setback in February when its founder, Zhaojun, was arrested by the police. This unfortunate incident was preceded by a series of mysterious hacks that resulted in substantial losses of user assets. In response to these challenges, Multichain declared its closure, leaving users with significant uncertainties about the future of their investments.

August 2023 marked a significant blow to the crypto industry when Prime Trust, a crypto custodian, declared bankruptcy. The company had been grappling with financial difficulties for some time. In June, the Nevada Department of Business and Industry issued an official order, citing Prime Trust’s “considerably deteriorated” financial condition. This order revealed that the company could not honor customer withdrawals due to a substantial liability on its balance sheet, ultimately leading to its bankruptcy.

Clockwork halts development activities citing limited commercial potential

The Solana-based smart contract automation project, Clockwork, made headlines in August as it announced the cessation of its development activities. Founder Nick Garfield stated that this decision was driven by the project’s assessment of limited commercial upside. Consequently, the platform closed its on-chain programs, marking another significant setback in the cryptocurrency space.

In October 2023, DeFi lender Yield Protocol delivered the news of its closure, suspending its borrowing and lending activities with plans to cease operations by the end of December. The platform cited regulatory insecurity as a primary reason for its decision and a lack of “sustainable demand for fixed-rate borrowing.” This closure further underscores the challenges faced by cryptocurrency projects in navigating regulatory landscapes.

The broader implications and industry resilience

The closures and challenges these prominent crypto projects face underscore the inherent volatility and risks associated with the cryptocurrency industry. As cryptocurrency markets evolve and mature, regulatory uncertainties, market fluctuations, and security concerns remain ever-present hurdles for new and established projects.

Despite these setbacks, the crypto industry has shown remarkable resilience. The technology underpinning cryptocurrencies, blockchain, continues to attract interest from various sectors, including finance, supply chain management, and healthcare. While individual projects may encounter difficulties, the broader blockchain ecosystem continues to grow and innovate.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

Stay on top of crypto news, get daily updates in your inbox

Related News

Crypto
Cryptopolitan
Subscribe to CryptoPolitan