Scam Watch: Study Shows 11,564,909 Cryptocurrencies Failed in 2025

The crypto market has seen a massive rise in new digital assets over the past year. However, a new study has disclosed a shocking reality in the crypto market. According to CoinGecko’s latest report, more than half of all digital assets listed on Gecko Terminal are inactive.

Notably, more than 53% of tracked tokens have failed. Most of these collapses occurred in 2025 alone. The latest data revealed that approximately 11.6 million crypto projects ended in a ditch last year. This makes up about 86% of all token failures recorded between 2021 and 2025.

$19B Liquidation Shakes Crypto Industry

Sadly, the massive wave of failures shows the risky, unstable nature in the crypto space, particularly for small, newly launched tokens. Most digital assets end before they even begin. Another major reason behind this collapse is the sharp market turbulence seen almost throughout 2025.

While major coins also experienced a tough year, the memecoin sector was hit the hardest, as so many low-quality projects were launched quickly and abandoned just as fast. In the final months of the year, the situation became even more terrifying. Approximately 8 million tokens collapsed in the fourth quarter of last year alone, representing more than 34.8% of all crypto failures ever reported.

The report further noted that many of these happenings have been connected to the October 10 liquidation fall. This market crash made history. It wiped out approximately $19 billion in leveraged positions within 24 hours, the largest single-day deleveraging event in crypto history.  It also triggered fear and panic across the market.

Rising Failures Send Warning to Investors  

Meanwhile, comparing 2025 with previous years shows how different and unusual it was. The report recorded around 1.38 million failed projects in 2024, accounting for 10.3% of total failures over 5 years. Between 2021 and 2023, failed projects recorded only 3.4%.

At first, crypto failures were rare. Then, riskier, poorly built projects entered the market. Over time, market pressure exposed weak tokens. By 2024 and 2025, millions of coins collapsed, showing how dangerous unchecked token creation can be.

While investing in newly created tokens may be profitable at times, these recent findings serve as a warning to most investors. With millions of tokens collapsing in a single year, it is important to stay alert, conduct careful research, and be more cautious of short-lived tokens.