WeFund believes blockchain technology has numerous applications and can be adopted across various sectors, however, there are many cases in which this promising technology is being used without tangible utility and application.

In addition to projects with a lack of utility, there are many cases in which projects backed by investors have malicious intent from the start and do not operate in good faith, therefore, failing investors. The China Academy of Information and Communications Technology (CAICT) claims that only 8% of the over 80,000 blockchain projects ever launched are still active today. Furthermore, blockchain projects only average a lifespan of roughly 1.22 years. Additionally, a Wall Street Journal review of 1,450 documents for digital coin offerings unveiled 271 indicators of fraudulent tactics — including “plagiarized investor documents, promises of guaranteed returns, and missing or fake executive teams.”

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