- Since 2013, at least 2,383 dead crypto coins have run their course.
- In 2018, Manish Ranjan created the Indian -based token to correlate digital currency and the healthcare industry.
- The value of the crypto ecosystem directly correlates to the number of active crypto traders.
Innovation is one of the critical factors that the crypto ecosystem has stood for since 2009. From the emergence of Bitcoin, multiple blockchain developers have stepped forward to implement new ideas that have stretched the capabilities of this revolutionary technology. Some altcoins have brought about new and improved decentralized systems that have accommodated several innovations. Unfortunately, due to the liberation the crypto ecosystem offers, it also gives rise to false crypto coins. Throughout the decade, we have experienced multiple crypto crashes and scams that have resulted in the loss of million. In truth, if a digital currency cannot deliver a cetin threshold, it will eventually receive an unpleasant terminology; dead crypto coins.
Despite having a direct meaning, what value do dead crypto coins hold for the ecosystem? Are we able to learn from the mistakes of such developers? Or is every digital currency fated to be classified as such eventually?
What exactly is a dead crypto coin?
Despite the innovation of blockchain technology and its numerous implication for the financial industry, the usefulness of digital currency bottles is to its value. The ability of a crypto coin to attain value makes it so revolutionary. It brakes the boundaries of the traditional systems that have restricted financial inclusion for decades.
The value of the crypto ecosystem directly correlates to the number of active crypto traders. This fundamental principle is the driving force behind the success of the top crypto coins in the industry. Unfortunately, this also serves as its ultimate flaw.
In hindsight, the entire crypto ecosystem is merely a sophisticated game of tug of war between multiple developers while the users are the rope. The higher the demand for a particular crypto coin, the higher its value. This means that the lower its market, the lower its value. So it begs the question, what happens when a crypto coin gains an average of zero demand? The answer is simple you earn dead crypto coins.
Dead crypto coins are digital assets of projects abandoned, turned out to be crypto scams or have low liquidity. Since 2013 after the crypto boom in 2011, at least 2,383 dead crypto coins have run their course.
How do crypto coins end up “dead.”
Many might assume that most dead crypto coins resulted from crypto scams, but this is far from the truth. There are generally three leading causes of dead crypto coins. They include:
- Failed Initial Coin Offerings.
- Abandonment due to low trading volume during the first three months of the launch
- Crypto scams and hacks that have ravaged the ecosystem
Variiousblockhain developers created a variety of altcoins to either compete or improve the current functionalities of Bitcoin. Due to the high pressure of competition, many failed crypto coins have occurred. For instance, since the height of Bitcoin, developers have created hundreds of altcoins to gain a glimpse of its predecessor’s success, but unfortunately, more than half defuncted by the end of the 2022 crypto crash.
The primary reason for most dead crypto coins is their inability to sustain a simple audience. Crypto coins with flatlining trading volume account for 66.5% of the total dead crypto coins over the past decade. 22% represent crypto scams that have deterred most users, while only 10% have failed after an unsuccessful ICO.
The highest recording of failed crypto coins within the ecosystems occurred in 2018. At least 751 digital currencies reached a value of zero due to two significant reasons. The first is the stiff competition that Bitcoin posed after attaining its highest value since launching, of $19,000 in 2017, causing multiple investors to abandon their projects.
The other was due to the high rate of crypto scams causing investors and regulators to flag 237 coins as crypto scams. This led to much scepticism, and, unfortunately, many crypto traders lost most of their capital.
Famous Dead crypto coins within the ecosystems
Despite the high rate of dead crypto coins today, some still plague the minds of crypto traders. These digital assets remind the entire crypto ecosystem that the crypto world is not for the faint-hearted. Here are the top family crypt coins of the whole industry.
Onecoins is a name that echoes one of the darkest times of the crypto ecosystems. It is one of the first global crypto scams highlighting unchecked digital currencies’ dangers. The self-proclaimed CryptoQueen, Ruja Ignatova, launched one coin in 2014 when digital currency gained a more favourable audience.
At the time, Ruja claimed that Onecoin would become the Bitcoin KIller and finally presented a worthy adversary towards the original cryptocurrency. Due to this bold claim, millions of investors flocked toward one coin, hoping to attain the digital currency that would finally overthrow Bitcoin.
Ruja craftily devised a plan to ensure Onecoin would appear as a legitimate crypto exchange until several clients flagged her operation as suspicious. Upon these allegations, Ruja disappeared with all of its clinet’sclient’s assets. She escaped with almost $4 billion and has been at large ever since. Many veteran crypto traders look back at Onecoin as one of the largest crypto scams. Unfortunately, many failed crypto coins have followed the same illegal method to fool unsuspecting investors.
Satish Kumbhani launched Bitconect in 2016 and gained a substantial following. It ranked among the top 20 crypt coins, and many crypto traders believed it had the potential to surpass Bitcoin eventually. CoinMarketCap had announced then that BitConect was one of the best-performing crypto coins in 201, hitting an all-time high of $463, a feat that astonished many, given its young age.
Unfortunately, at the height of its success, Biconnect almost instantaneously lost its value to allegations of being a Ponzi Scheme and a crypto scam. The once-successful digital currency soon failed as users drastically withdrew their investment. Bitconnect interest fluctuated ideally due to this and eventually could not maintain its operations.
These failed crypto coins exited the market as fast as their fame grew. From its failure, many regulators created various laws that prevented any crypto exchange from operating in a particular way.
BoringCoin is a special mention even among dead crypto coins. Developers launched it in 2014 as a “joke project” similar to most meme coins, but BoringCoin took it further. The developers clarified that the crypto coins promised no drama, hype, or pumps and dumps.
Most markets instantly considered it a failed crypto coin from its launch and barely featured on any listing. Many crypto traders took BoringCion as a project that mocked what the crypto ecosystem stood for and received plenty of backlashes.
The NanoHealthCare toke was one of the innovations that the crypto ecosystem had. In 2018, Manish Ranjan created the Indian -based token to correlate digital currency and the healthcare industry. According to Manish, he made the NHCT use blockchain technology to impact lives by solving systematic healthcare issues such as data security and high cost.
Unfortunately, despite its vision for change, the failed crypto coins did not gain enough traction to compete with other altcoins. Given its intent to change the healthcare industry, only a few actively knew the dynamics of digital currency.
Furthermore, most hospitals could not effectively rely on a digital currency that fluctuated based on its users. This would open a new risk factor that most hostels could not accommodate. Thus in 2020, developers signed off the NHCT as a dead crypto coin.
FTT, the FTX native coin
Despite not technically attaining the $0 value, the FTT deserves a slot within this category. 2022 is still a fresh memory in most crypto traders due to its defining crypt crash. The FTT lost 80% of its value within the first month. Most consider the FTT the most damaging dead crypto coins whose after-effects are still felt within the majority of 2023.
At the time of writing, the FTT values are at $0.901, and unfortunately, it only appears to decline steadily. With various pending lawsuits, it’s only a matter of time before the market officially announces it as a failed crypto coin.
The number of dead crypto coins has increased given the 2022 crypto crash, the high rate of crypto scams and competition. Failed crypto coins will continue to exist as a by-product of innovation and give room for more practicable digital currency. We should look up such not as a source of distaste but as a reminder that we have significantly improved over the past decade.