Did you know that there are more than 10,000 cryptocurrencies now on the market? Some are meant to function as currency and eventually replace dollars in your wallet. Others offer affordable loans in developing countries, and others even promise to change the Internet as we know it.
With all this in mind, it’s no surprise that so many cryptocurrencies have failed. In fact, more than 2,000 tokens died since the birth of bitcoin in 2009. According to Coinopsy, a site that tracks dead tokens, 6 tokens have already died this year. It indicates that tokens are failing or being deleted for various reasons, including:
- Scams and Scams (Scam)
- Inability to execute business plans
- loss of interest
- Personal issues developers face
- Let’s take a look at five tokens that failed.
Launched in 2014, OneCoin was one of the first cryptocurrency fraudsters. Its founder, the self-proclaimed “CryptoQueen” Ruja Ignatova, has hosted glitzy events around the world, including one at Wembley Arena in the UK. She presented OneCoin there as a “bitcoin killer”.
Millions of investors would later be scammed in what turned out to be a $4 billion Ponzi scheme that used money from new investors to pay returns to old ones. Ignatova disappeared in 2017 when the net finally tightened and police issued an arrest warrant.
Launched in 2016, BitConnect is another now famous scam token. The token hit an all-time high in December 2017 and was one of CoinMarketCap’s top-performing tokens that year. But a few months later it was worth nothing.
The 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 paid were funded by new investors and when the platform crashed, people lost everything.
3. BoringCoin (ZZZ)
BoringCoin, launched in 2014, promised no drama, no hype and no pumps and dumps. Like about 90-95% of the fictitious currency tokens, it did not survive the year. According to Coinopsy, the token died because it was a joke or was useless. Or maybe she was just too boring.
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GetGems was a social messaging app that allowed people to send and receive bitcoins. Users can earn more GEMZ by inviting their friends to join. Founded in 2015 by Daniel Peled, it raised approximately $1 million through crowdfunding and direct investment, but ultimately failed to deliver.
The price peaked at $0.0579 in May 2017 according to data from CoinMarketCap, before the token stopped trading altogether.
5. NanoHealthCare Token (NHCT)
We looked at some of the older cryptocurrencies, but several newer tokens have already failed, including NanoHealthCare Token. This India-based token was created in 2018 by Manish Ranjan to change the reality of healthcare. He wanted to use blockchain to impact lives by solving systemic health problems such as data security and high costs.
Unfortunately, as of April 2020, there have been no more updates to his Twitter feed and his website is no longer available. Coinopsy lists it as dead due to abandonment or no volume.
How to avoid buying failing cryptocurrencies?
There is no surefire way to avoid a failing cryptocurrency. All investments in cryptocurrency come with risks, and even well-meaning developers with a long history of cryptocurrencies can overextend themselves. However, our ebook can help you identify cryptocurrencies with existing issues.