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Crypto Failures

3 Failed Crypto Startups & the Reasons Behind

Here are 3 crypto startups that have shut down in the last years, analyses on their failure, and interviews with their founders.

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There are a lot of things to consider when building a new startup - where to get funding, how to validate your idea, and what features should the product have.

One of the challenges is finding a market that is willing to pay for your solution without even knowing what it is yet.

However, 90% of startups will fail and shut down.

In this article, you can find 3 failed Crypto startups as well as analyses on why they closed down.


3 Failed Crypto Startups

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37Coins

37Coins

37Coins developed a new Bitcoin platform. In 2014, they announced that providing Bitcoin transfer across different regions proved to be impossible.

Details of the startup:

  • Founders:

    Johann Barbie, Jonathan Zobro, Songyi Lee

  • Country:

    United States

  • Industry:

    Finances

  • Started in:

    2014

  • Closed in:

    2015

  • Nº of employees:

    1-10

  • Funding Amount:

    < $1M

  • Specific cause of failure:

    Lack of Funds

You can read more about their failure here.

Koinex

Koinex

Koinex was a cryptocurrency exchange platform. India's laws got harsh against cryptocurrencies and the obstacles and little profits led to its shut down.

Details of the startup:

  • Founders:

    Aditya Naik, Rahul Raj, Rakesh Yadav

  • Country:

    India

  • Industry:

    Finances

  • Started in:

    2017

  • Closed in:

    2019

  • Nº of employees:

    50-100

  • Funding Amount:

    No Data

  • Specific cause of failure:

    Legal Challenges

You can read more about their failure here.

Phez

Phez

Shanti is a 38-year-old software developer and entrepreneur who, using Ruby on Rails, built Phez, a Reddit clone that rewarded users with Bitcoin. After a few months, however, Phez failed due to its poor business model. If Shanti would have sold the BTC he used as rewards at BTC peak, he would have made $29,014!

Details of the startup:

  • Founder:

    Shanti Braford

  • Country:

    United States

  • Industry:

    Social Media

  • Started in:

    2015

  • Closed in:

    2016

  • Funding Amount:

    $0

  • Specific cause of failure:

    Bad Business Model

You can read more about their failure here.

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