Did you know there are more than 10,000 cryptocurrencies on the market right now? Some aim to function as currencies 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 of 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 dropped for many reasons, including:
- Frauds and scams (Scam)
- Inability to carry out business plans
- Loss of interest
- Personal issues faced by developers
- Let’s take a look at five tokens that failed.
1. OneCoin (ONE)
Launched in 2014, OneCoin was one of the first cryptocurrency frauds. Its founder, 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 find themselves defrauded 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 as the net finally tightened and police filed a warrant for her arrest.
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 best performing tokens that year. But a few months later, it was no longer worth anything.
Its 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 crashed, people lost everything.
3. BoringCoin (ZZZ)
Launched in 2014, BoringCoin promised no drama, no hype, and no pumps and dumps. Like about 90-95% of fictional 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.
GetGems was a social messaging app that allowed people to send and receive bitcoins. Users could earn more GEMZ by inviting their friends to join. Founded in 2015 by Daniel Peled, it raised around $1 million through crowdfunding and direct investment, but ultimately couldn’t deliver.
Its price peaked at $0.0579 in May 2017 according to data from CoinMarketCap, before the token ceased trading altogether.
5. NanoHealthCare Token (NHCT)
We have looked at some of the older cryptocurrencies, but several newer tokens have already failed, including NanoHealthCare Token. This 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 systemic healthcare problems, such as data security and high costs.
Unfortunately, there have been no updates on his Twitter feed since April 2020, 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 cryptocurrency investments involve risk, and even well-meaning developers with a long history of cryptocurrencies might overwork themselves. However, our Ebook can help you identify cryptocurrencies with existing problems.