The experts analyzed more than 200 cryptocurrencies and concluded that most of them are fully controlled by their teams of developers.

Decentralization is a dream

According to the CryptoCompare report, which provides a detailed analysis of more than 200 cryptocurrency assets from the top of the rating by capitalization, 55% of cryptocurrencies are completely centralized, while other 30% are half decentralized. Thus, only 16% of cryptocurrencies analyzed can be considered decentralized.

“Note that the degree of centralisation pays no regard to the intent of the designers of the cryptoasset,” the report reads.

The share of centralized cryptocurrency assets is higher among tokens functioning as financial assets (79%) and utility tokens (58%), while payment tokens showed the least degree of centralization (41%).

Almost all cryptoassets are securities

From a technical point of view, most cryptocurrencies can be classified as securities. The authors of the report took the classification of the Swiss regulator FINMA, which identifies three types of token according to their intended use: payment, asset tokens, and utility tokens. The last one still can be categorized as  securities if they are not used as a tool, but as an asset for trading or investment.

“According to FINMA guidelines, at least 54.8% of the publicly funded cryptoassets are considered securities.”

Earlier, a group of other experts found out that about 1,000 cryptocurrency projects are dead. There is no evidence of any activity or development of their protocols, according to the Coinopsy and Dead Coins joint study. These are not only fraudulent projects, but also those that were obviously created for speculative purposes or which encountered problems in software development, wallets, or even death of their founders.