Vaporware

Vaporware refers to a blockchain project that fails to come to fruition after its initial announcement and never gets released.

What Is Vaporware in Crypto?

In the context of crypto, Vaporware is a project still stuck in the concept or development phase that lacks a functioning product. Most of these projects may have an initial launch advertised, but ultimately get canceled or otherwise never come to fruition. The term can also loosely refer to protocols or decentralized applications (dApps) that solve problems that are either overstated or non-existent.

Put another way, such projects announce or create hype about a pending release, specific utility, or token only to fail in delivering their promises. Instead, their pitch turns to metaphoric “vapor,” thus the name “vaporware.” However, some may end up being released years after their projected release date.

When projects fail or are delayed in delivering promised functionalities, the public loses confidence in the project. This often results in financial losses for the investors because the project’s tokens lose value.

What Causes Vaporware in Crypto?

Some of the factors that lead to vaporware in crypto include:

• Technical issues – Some founders announce revolutionary deliverables to create interest and raise funds, but lack the technical skills, experience, or technology to deliver.
• Lack of funding – Funds play an essential role in the success of a blockchain project. Some projects may be forced to officially cancel or delay the launch when the initial coin offering (ICO) fails to raise enough funds to deliver the promised product or service.
• Excessive hype – Over-hyping can be very detrimental even for a promising project, since it raises expectations around what a project can deliver. This happens when the project is seeking funding or looking to create fear of missing out (FOMO) among investors. As a result, turning this hype into a reality becomes a challenge.