5 cryptocurrencies that failed – and why
Did you know that there are currently over 10,000 cryptocurrencies on the market? Some are intended to function as currencies and eventually replace the dollars in your wallet. Others offer affordable loans in developing countries, and one even promises to change the internet as we know it.
Some have less noble goals. There is a $ STOPELON coin designed to protest the outsized influence of Tesla CEO Elon Musk’s tweets in the crypto market. It is not clear exactly how they plan to do this. But, speaking of Musk, there are a plethora of pet coins out there that aim to replicate Dogecoin’s success by just being fun and memorable.
With all of this in mind, it’s no surprise that so many cryptocurrencies have failed. In fact, over 2,000 coins have died since Bitcoin was born in 2009. According to Coinopsy, a site that tracks dead coins, nine coins have already died this year. It indicates that parts fail or are abandoned for many reasons, including:
- Frauds and scams
- Failure to make business plans
- Loss of traction
- Personal issues encountered by developers
Let’s take a look at five pieces that failed.
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1. OneCoin (ONE)
Launched in 2014, OneCoin was one of the first crypto frauds. Its founder, self-proclaimed “CryptoQueen” Ruja Ignatova, has organized glitzy events around the world, including one at Wembley Arena in the UK. There, she introduced OneCoin as a “Bitcoin Killer”.
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Millions of investors would later end up being conned into what turned out to be a $ 4 billion Ponzi scheme that used new investor money to pay off existing investors. Ignatova disappeared in 2017 when the net finally closed and police filed an arrest warrant for her.
2. BitConnect (BCC)
Another now infamous fraudulent coin, launched in 2016, is BitConnect. The coin hit an all-time high in December 2017 and was one of CoinMarketCap’s top performing coins that year. But a few months later, it was no longer worth anything.
His aggressive marketing promised returns of 0.5% to 1% per day, along with other incentives. But like OneCoin, it was a pyramid scheme. The high returns it was paying were funded by new investors, and when the platform collapsed people lost everything.
3. BoringCoin (ZZZ)
Launched in 2014, BoringCoin promised no drama, no hype, and no pumps and dumps. Like about 90% to 95% of the joke pieces, it didn’t make it through the year. Coinopsy lists the coin as dead because it was a joke or was wasted. Or maybe it was just too boring.
4. Get gems (GEMZ)
GetGems was a social messaging app that allowed people to send and receive Bitcoin. Users could earn more GEMZ by inviting friends to join. Founded in 2015 by Daniel Peled, it raised around $ 1 million through crowdfunding and direct investment, but in the end it failed to deliver on its promises.
Its price peaked at $ 0.0579 in May 2017 according to data from CoinMarketCap, before the coin completely stopped trading.
5. NanoHealthCare token (NHCT)
We have looked at some of the older cryptocurrencies, but several new coins have already failed, including the NanoHealthCare token. The India-based token was created by Manish Ranjan in 2018 to change the reality of healthcare. He wanted to use blockchain to impact lives by solving systematic health issues like data security and high costs.
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Unfortunately, there have been no updates to their Twitter feed since April 2020 and their website is no longer available. Coinopsy lists it as dead due to its abandonment or lack of volume.
How to Avoid Buying Failing Cryptocurrencies
There is no surefire way to avoid a failing cryptocurrency. All crypto investments come with risk, and even well-meaning developers with a long history of cryptocurrency can go above and beyond. However, these questions can help you identify cryptocurrencies with existing health issues.
- Who are the founders? If you can’t figure out who is behind a coin you want to invest in, that should be a big red flag. Look for the founders of the coin and make sure they haven’t been involved in any previous fraudulent ventures. If they have participated in successful cryptocurrency projects, so much the better.
- What is the plan? You wouldn’t be investing in a business that didn’t have a plan, so any cryptocurrency you invest in must have a compelling business case. What problem will he solve and how will he do it? You don’t need to become a tech wizard, but try to figure out how the new coins will be mined and how the blockchain will be secure.
- Is this a joke coin? Joke pieces are great for memes and for poking fun at some of the crazy aspects of this industry. But if you try to invest in the next Dogecoin, you might be disappointed. A very high percentage of prank pieces fail completely, and we still don’t know how Doge’s story will play out.
- Where is it listed? Sticking to the coins listed on major cryptocurrency exchanges offers a certain degree of protection. These sites control the coins they list, but they will also give in to market pressure if a coin becomes extremely popular.
- Are their social media and website active? A sure sign of a failing part is a website that has not been updated for several months or an inactive Twitter feed. Get involved in the community of the coin you want to buy so you know where you are putting your money.
Projects can fail – it’s a sad fact of investing. This is why it makes sense to invest only the money you can afford to lose and research as much as possible before parting with your hard earned money.