From among the top 100 cryptocurrencies, around 40 of them have a ‘working product’ which is ‘active and open to the public’, as per the latest study this week. A pretty sobering sum.
Promises and Promises
The results of the investigations of Invest in block chain show that the majority of the projects that have been launched recently, often have to offer no real use cases. “We evaluated the status of each project, studied the roadmap, reviewed the publication history and compared the finished features with what the team promises for the future,” said authors John Bardinelli and Daniel Frumkin.
The results reflect the general criticism of the Altcoins, and many commentators had warned against investing in cryptocurrencies based on issuers’ promises and plans for the future.
Last month, another report from the University of Pennsylvania Law School came to the same conclusion. Many ICO projects fail to provide fundamental investor protection or fulfil white paper promises as per many analysts. Other critical commentaries include BTCC CEO Bobby Lee and BitTorrent founder Bram Cohen and others.
Ripple (XRP) ‘completely unnecessary’ and Litecoin, compromises’
Bardinelli and Frumkin said that promises are seldom kept. For example, they described the native crypto currency Ripple as “completely unnecessary” and Litecoin as the cryptocurrency, which “does not significantly extend the functionality of Bitcoin, but compromises variously.” However, not every Altcoin does so poorly. Especially the crypto-currencies that focus majorly on privacy such as Monero and ZCash, are gaining immense popularity.
Nevertheless, Ripple (XRP), Litecoin, Bitcoin, Ethereum and others are listed among the working projects. Not all digital assets appeared on the list, as only those that offer more than one mainnet are listed. Some of the authors opined that :
“There are many projects in the top 100 that have launched their mainnet, and can claim to have a ‘working product’ by a loose definition. However, we have chosen not to include projects which aren’t actually being used by any significant measure, which means that most of the recently launched mainnets will not yet meet our criteria”