U.K Publish Documents Evaluating the Global Crypto Industry

U.K Publish Documents Evaluating the Global Crypto Industry

crypto industry

2018 has been a very difficult year for many companies in the crypto industry due to several reasons which include the downfall of the virtual currency bull market in 2017, the loss of excitement in blockchain promotion, and the swift close down of ICOs. However, a new report from the United Kingdom helped to properly evaluate the global cutback.

2017 Price Spike Led to Increase in Scammers

In 2017, the rapid increase in the price of cryptocurrencies led to the increase in the number of unfamiliar entrepreneurs of which some of them were swindlers.

Most of these scammers used the innocence of inexperienced investors to their own advantage through the sales by ICO tokens, even though these tokens lacks a factual business plan. Some scammers also tried to dupe stock investors by including the term “blockchain” in their company names or by claiming to make use of “DLT” for every business even the unrelated ones just to fleece the investors of their money. However, as these price of virtual currency reduced, many companies went dead.

Based on a recent report, about 340 startups which claimed to be involved in blockchain or crypto has folded up this year. This number shows an increase of 144 percent from just 139 blockchain related startups which shut down in 2017. According to the data, over 200 of those 340 companies were created in 2017 and 60 percent of them busted between June and November 2018.

Inverse Growth Curve

Fortunately, the number of recently registered blockchain companies kept increasing throughout the year achieving an overall of 817 in November 2018. This means that the industry kept on growing. However, reports showed that for the first time in the year, the rate at which new companies are being registered has reduced compared to the number of blockchain businesses being shut down and as for those that have been closed, more than 50 of them have erased any reference to blockchain or crypto from their names.