Since Bitcoin’s release over a decade ago, the blockverse has not only kept us all in awe of the possibilities of decentralized platforms where the sky was the limit and people felt like they finally held the reins of their own lives in their hands. However, not everyone is in it for the progress of humankind and the cryptoverse.
There’s a lot of scammers in the game too, but mostly there are those poor souls that didn’t quite have what it takes to make it like some of the big fish.
Apart from key players such as Bitcoin and Litecoin, there have been an estimated 1800+ cryptos in existence till now, but not all of them are still functional. Thanks to sites like Coinopsy and DeadCoins, we now have a pretty good idea of how many crypto tokens are either discontinued, abandoned or just plain dead.
So, what is a Dead Coin?
According to a comprehensive study by Coinopsy, a dead coin can be classified as “A token or coin that has been abandoned, scammed, website dead, no nodes, wallet issues, no social updates, low volume or developers have walked away from the project.”
The site also goes ahead and classifies these dead coins into four major categories which are,
These are the worst of the worst and would have left you high and dry had you as an unsuspecting investor fallen for their trap. Not surprisingly, a majority of the dead coins on both lists come from this category.
These are the ones that have either employed elaborate ponzi schemes, pump and dumps, simply disappeared with your money, bamboozled users out of their private keys or just sold you a convincing but entirely fake platform.
ICO Dead Coins
Next, we move on to the ICO experience. An initial coin offering is much like a coin toss, heads you win, tails you lose. However, this is just made harder by some ICO’s that are just scams or are set up by inexperienced teams that will take you down along with them.
However, it isn’t all that difficult to bet your money on the right horse as doing a little research on whos’s backing the venture is always a good idea. If it’s a big name, they’re more likely to know what they’re doing.
Joke Dead Coins
These ones should theoretically be easy to spot. People like to make things just for the heck of it and the crypto verse is no exception. What’s imperative to understand about Joke Coins is that they’re not trying to compete with the big ones in the market and can be made for a number of reasons but not limited to; the ability to make a few quick bucks off of famous people’s names, to make fun of a specific token, to make fun of the entire idea of cryptos and even just for fun.
The last entry on this list is perhaps the saddest one. Abandoned Coins can be the result of scams and pump and dump schemes but they can also be due to the failure of some legitimate ventures. Some reasons they fail are lack of funding, no user traffic, inability to get listed on exchanges or even just the creator giving up on their project due to a number of reasons.
If you’re interested in researching up on more facts about Dead Coins, we suggest looking up the DeadCoins website for hours of education and fun as they take this a step further and share the reasons behind the coin’s current status.