5 Cryptocurrencies That Failed: know the reason behind
There are many Cryptocurrencies which have failed and don’t gain any attention. Discover five cryptocurrencies that experienced failure and learn about the reasons behind their demise. Explore the fraudulent schemes, poor planning, and other factors that contributed to their downfall. Find out how to identify potential pitfalls and make informed investment decisions in the volatile cryptocurrency market.
Reason for the Cryptocurrencies That Failed
The cryptocurrency market boasts over 10,000 digital currencies with various goals and aspirations. While some strive to revolutionize traditional finance, others seek to capitalize on trends or entertain users through meme-based concepts. However, not all cryptocurrencies have been successful, with over 2,000 coins already failing since the advent of Bitcoin in 2009. In this article, we will examine five notable cryptocurrencies that met their demise and explore the reasons behind their failure.
OneCoin emerged in 2014 as one of the earliest crypto frauds. Led by Ruja Ignatova, self-proclaimed “CryptoQueen,” OneCoin gained attention through extravagant events and ambitious claims, including being hailed as a “Bitcoin Killer.” However, it turned out to be a $4 billion Ponzi scheme, deceiving millions of investors. In 2017, Ignatova vanished when authorities closed in on her, issuing an arrest warrant.
Launched in 2016, BitConnect gained notoriety as a fraudulent coin. It experienced a meteoric rise in December 2017 and was one of CoinMarketCap’s top-performing coins that year. BitConnect promised daily returns of 0.5% to 1% along with enticing incentives. However, it operated as a pyramid scheme, relying on new investors’ funds to sustain high payouts. When the platform collapsed, investors lost everything.
Introduced in 2014, BoringCoin marketed itself as a cryptocurrency free from drama, hype, and pump-and-dump schemes. However, like many joke coins, it failed to survive beyond its first year. Coinopsy categorizes BoringCoin as dead due to its lack of purpose or entertainment value, or perhaps simply because it failed to capture interest.
Founded in 2015 by Daniel Peled, GetGems aimed to provide a social messaging app that integrated Bitcoin transactions. Users could earn additional GEMZ by inviting friends to join the platform. Despite raising approximately $1 million through crowdfunding and direct investments, GetGems ultimately failed to deliver on its promises. Coin trading for GEMZ ceased after reaching a peak of $0.0579 in May 2017.
NanoHealthCare Token (NHCT)
Among the more recent failures, NanoHealthCare Token was created in 2018 by Manish Ranjan with the goal of revolutionizing healthcare through blockchain technology. NHCT aimed to address issues such as data security and high costs in the healthcare sector. However, the project’s Twitter feed has been inactive since April 2020, and its website is no longer accessible. Coinopsy lists NHCT as dead due to abandonment or lack of trading volume.
Avoiding Failed Cryptocurrencies: Key Considerations
While it’s challenging to predict the success or failure of a cryptocurrency, several factors can help you make more informed investment decisions. Consider the following:
Founders: Research the founders’ background and ensure they have no involvement in previous fraudulent ventures. Prior success in cryptocurrency projects can inspire confidence.
Business Plan: Look for cryptocurrencies with well-defined business cases and a clear problem they aim to solve. Understanding their mining process and blockchain security is essential.
Joke Coins: While joke coins may be amusing, investing in them carries significant risk.
Why did OneCoin fail?
OneCoin was a $4 billion Ponzi scheme, deceiving investors and resulting in the disappearance of its leader, Ruja Ignatova.
How did BitConnect operate as a fraudulent scheme?
BitConnect operated as a pyramid scheme, relying on new investors’ funds to sustain high payouts, which ultimately led to its collapse.
Why is NanoHealthCare Token considered a failure?
NanoHealthCare Token is considered a failure due to abandonment, with inactive social media and an inaccessible website.
What caused the failure of GetGems?
GetGems failed to deliver on its promises despite successful fundraising, resulting in the halt of its coin trading.