There are lots of reasons why crypto ATMs fail. First of all, there isn't a big demand or companies choose wrong locations. You have to open a crypto ATM in a city where lots of crypto enthusiasts live but that's not everything. Another reason why they fail is that fees are extremely high. I've heard that some ATMs have charged up to 25% of the value of your transaction. I am a crypto enthusiast and I'd happily use Bitcoin ATMs but why should I use them if I'm about to lose up to 25% of my money? Almost all of crypto ATM owners charge that much and make it impossible for people to use, so of course, they'll fail.

The third reason why they fail is that companies like Binance and XAPO make it very easy to use your Bitcoins in real life. You can send Bitcoins to your Binance or XAPO wallet and then withdraw with their card at any part of the world with very low commissions. It's hard to compete with this business model because it's very comfortable.