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2018 witnesses the collapse of over 300 British Blockchain Companies

Alan Muli

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2018 has been a challenging year for many startups operating in the crypto sector. Crypto startups have had to face rapid collapse of ICOs, and the fizzling out of corporate Blockchain. A new report from the U.K. helps determine the global shut down which saw over 300 British Blockchain companies collapse.

Blockchain Bankruptcies Rise by 144%

The speedy rise of cryptocurrency prices in 2017 led to a sudden invasion of the sector by new entrepreneurs, some of whom, unfortunately, were scammers. A number wanted to take advantage of inexperienced crypto investors through shilling ICO tokens, despite not having a real product in many cases or even a viable business plan.

Others tried to Con stock investors by adding the term ‘Blockchain’ to their companies’ names, just to ride the hype all the way to the bank. As this trends subsided, many startups went belly up.

A report by U.K.’s Sky News found out that at least 340 companies claiming to be involved with crypto or Blockchain were shut down this year. This figure represents an increase of 144%. A record 139 Blockchain-related companies went bust in 2017. The data shows that over 200 of those companies were established during 2017 and 60% of them closed down between June and November 2018 alone.

The number of newly registered Blockchain companies continued to rise all through the year, reaching a total of 817 in November 2018. This marked an overall growth in the digital currency market. Of the companies which haven’t been shut down, over 50 have removed references to Blockchain or crypto from their name.

Some of the blame has been apportioned to Bitcoin, why this is so still remains a mystery as the happenings of the vast digital currency ecosystem especially pertaining to Blockchain business cannot be explained. The seeming collapse of the sector saw mainstream media outlets such as Facebook, Amazon, Apple, Netflix and Google lose more than $1 trillion in revenue.

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