The disappearance of the cryptocurrency market in 2017, the rapid collapse of the ICOs and the outbreak of the corporate blockchain fury have made 2018 a busy year for many start-ups operating in the cryptography sector. A new report from the United Kingdom helps to quantify the global slowdown.
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Blockchain failures increase by 144%
<img class = "alignright size-medium wp-image-265257″ title=”Report: over 300 British companies of Blockchain are extinguished in 2018″ src=”https://news.bitcoin.com/wp-content/uploads/2018/12/insolvency-300×188.jpg” alt=”Report: more than 300 blockchain UK companies switch off in 2018 "width =" 300 "height =" 188 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/insolvency-300×188. jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/insolvency-768×480.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/ insolvency -1024×640.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/12/insolvency-696×435.jpg 696w, https://news.bitcoin.com/wp-content/uploads/ 2018 / 12/insolvency-1392×870.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/insolvency-1068×668.jpg 1068w, https://news.bitcoin.com/wp- content /uploads/2018/12/insolvency-672×420.jpg 672w "sizes =" (maximum width: 300px) 100vw, 300px”/>The rapid rise in cryptocurrency prices in 2017 led to an influx of new entrepreneurs, some of whom, unfortunately, were scammers. A number wanted to take advantage of inexperienced cryptor investors through the ICO token exchange, despite not having in many cases a real product or even a profitable business plan. Others have tried to contain equity investors by adding the term "blockchain" to the names of their companies or claiming the use of "DLT" for any foreign activity under the sun, just to drive the hype up to the bank. With these trends weakening, many start-ups have faded away.
Putting a number on it, Sky News of the United States has discovered that at least 340 companies that claim to be involved with cryptography or blockchain have been closed this year. He obtained these results by analyzing the data available to the public from the Companies House and Open Corporates databases. This figure has increased by 144 percent compared to only 139 companies linked to the blockchain that went bankrupt in 2017. Data show that over 200 of these companies were established in 2017 and 60 percent of them closed only between June and November 2018.
Blaming everyone on Bitcoin?
<img class = "alignright size-medium wp-image-265260″ title=”Report: over 300 British companies of Blockchain are extinguished in 2018″ src=”https://news.bitcoin.com/wp-content/uploads/2018/12/foreclosure-300×188.jpg” alt=”Report: more than 300 British blockchain companies go out in 2018 "width =" 300 "height =" 188 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/foreclosure-300×188. jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/foreclosure-768×480.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2018/12/ foreclosure -1024×640.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2018/12/foreclosure-696×435.jpg 696w, https://news.bitcoin.com/wp-content/uploads/ 2018 / 12/foreclosure-1392×870.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/foreclosure-1068×668.jpg 1068w, https://news.bitcoin.com/wp- content /uploads/2018/12/foreclosure-672×420.jpg 672w "sizes =" (maximum width: 300px) 100vw, 300px”/>On the other hand, the number of newly registered blockchain companies continued to grow during the year, reaching a total of 817 in November 2018, which means that the market has continued to grow overall. However, the report finds that the number of new companies is becoming slower than the number of blockchain companies closing for the first time. And of companies that have not been closed, over 50 have removed the references to blockchain or crypto from their name.
Instead of trying to explain exactly what happened in the vast and varied blockchain business ecosystem, Sky News simply tried to blame Bitcoin. The report simply points to the decline in BTC's prices and links it directly to the numbers they have found. To further dramatize the issue, the authors argue that hundreds of bitcoin investors in the United Kingdom have been injured, causing them to lose their homes and even their marriages, but fail to present a single concrete example. The rhetoric of Sky News is incomparable compared to the traditional media coverage of the collapse of stock markets around the world, which saw the giants of technology Facebook, Amazon, Apple, Netflix and Google (the "FAANG" shares) lose more than 1 trillion of dollars in value.
Will 2019 be better for the survival of blockchain and crypto societies? Share your thoughts in the comments section below.
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