The cryptocurrency landscape has become a double-edged sword: a breeding ground for innovation and a magnet for scams and failures.
An analysis of over 1,500 crypto ventures sheds light on the global hotspots for dead and scam projects, exposing how some nations dominate the dubious side of the industry.
Key Findings
- The United States leads in both scam and dead crypto projects, with American founders accounting for 33% of all dead and 43% of all scam ventures.
- Russia claims the highest scam rate, with 24% of its crypto projects flagged as fraudulent.
- South Korea tops the charts for project failure, with 59% of its crypto ventures categorised as dead.
- Vietnam, a developing nation with a burgeoning blockchain industry, ranks in the top 10 for both scam and dead projects globally.
The U.S.: A Double-Edged Crypto Powerhouse
The United States sits at the epicenter of the crypto revolution, leading in scam and dead projects.
Its 43% share of global crypto scams may stem from the sheer volume of its entrepreneurial ventures. Notably, high-profile implosions like FTX have exposed glaring gaps in oversight and ethics.
FTX founder Sam Bankman-Fried’s platform, once valued at $32 billion, crumbled in 2022 after revelations of reckless misuse of customer funds.
The fallout, marked by bankruptcy and staggering investor losses, shook the global crypto market, underscoring the risks of unchecked ambition and inadequate regulation.
Global Scam Rates: Russia and Beyond
While the U.S. dominates in numbers, Russia takes the crown for the highest scam rate, with nearly a quarter of its crypto projects identified as fraudulent. Switzerland follows at 22%, and China is not far behind at 20%.
Meanwhile, Vietnam, despite its emerging blockchain ecosystem, grapples with a 12% scam rate, placing it among the top ten globally.
Project Failures: A Global Epidemic
The failure rates of crypto projects present a cautionary tale. South Korea’s staggering 59% death rate highlights the volatile nature of its innovation hub.
Similarly, Singapore and the United Kingdom face failure rates of 54% and over 50%, respectively. Even countries like Canada and the Netherlands show significant failure rates, both at 50%.
Vietnam, with a failure rate of 42%, stands out as the sole developing nation in the top tier, raising questions about sustainability in its fast-growing crypto market.
Vietnam: A Tale of Rapid Growth and Risk
Vietnam’s rise as a blockchain hub is remarkable, yet its struggles with project longevity and legitimacy are equally noteworthy.
With 1.3% of global scam projects and 2% of dead projects originating from Vietnamese developers, the nation’s crypto landscape mirrors its rapid industrialisation—fast-paced but fraught with pitfalls.
The country’s rankings for scam (12%) and failure rates (42%) signal the need for stronger oversight and investor caution as Vietnam cements its place in the global crypto ecosystem.
A Call for Global Standards
The prevalence of scam and failed crypto initiatives worldwide underscores the urgent need for global standards and regulatory frameworks.
From the U.S. to Vietnam, these findings highlight a shared vulnerability: the delicate balance between innovation and accountability.
Without stricter oversight and better investor education, the crypto market risks losing the trust it needs to fulfill its transformative potential. The time for international cooperation to safeguard the industry is now.
