13.4 Million Altcoins Dead: How SEC Regulation Turned Crypto Into a Graveyard
Over 13.4 million altcoins have failed since 2021, largely due to outdated SEC regulations forcing projects to strip tokens of enforceable rights.Summary
Crypto analyst Alex Krüger asserts that the failure of over 13.4 million altcoins since 2021 is primarily a result of outdated regulations, particularly the SEC's reliance on the Howey Test. To avoid being classified as securities, crypto projects systematically removed all enforceable rights from their tokens, resulting in assets defined by speculation rather than ownership. This regulatory pressure created an accountability vacuum where founders faced no fiduciary duties, leading to projects with zero rights and opaque treasuries, which Krüger describes as tokens designed to "soft rug." Consequently, retail traders shifted toward meme coins, exacerbating speculation and predatory trading behaviors. Krüger suggests that a future reckoning will require clear regulations to foster tokens with strong fundamentals or equity.
(Source：BeInCrypto)