3 Failed Crypto Startups & the Reasons Behind
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
1) 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
- 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.
2) 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
- Started in: 2017
- Closed in: 2019
- Nº of employees: 50-100
- Specific cause of failure: Legal Challenges
You can read more about their failure here.
3) 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
- Started in: 2015
- Closed in: 2016
- Specific cause of failure: Bad Business Model
You can read more about their failure here.
