The cryptocurrency market is littered with what most people call “dead coins”. These are cryptocurrencies that exist with almost no market value mostly as a result of insignificant network effect.
Several reasons could lead to a cryptocurrency becoming a “dead coin”, even though in the actual sense it is difficult to establish that a coin is completely dead. Some of these reasons include the disappearance of a project team, inability to follow through on promises, bad management, conflict within a project’s community and outright scam.
In the past decade that cryptocurrencies have existed, many coins have fallen into this category. Let’s take a look at the top 5 cryptocurrencies with a lot of promise that never made it.
5. SpaceBITThe goal of SpaceBIT, at least what was communicated to the public, was to create a blockchain product that will launch several nano-satellites into space providing a globally accessible blockchain.
This idea was made known to the public in 2014, and news about it was still all over the blockchain industry into 2015 and the community waited with palpable enthusiasm.
Everyone looked forward to the project until the propagators went silent. Reports indicate that the SpaceBIT team diverted into another project, BlockVerify. This took their attention off SpaceBIT and it became an abandoned project till date.
4. GEMSGems, which later became “GetGems” tried to build a decentralized social app that will reward users for viewing advertisements within the app. At the time, the project team described it as the eventual disruptor of social media as we knew it.
Unfortunately for Gems, a failed crowdsale exercise in 2014 discouraged the team and community over the planned execution. Only $111,000 was raised during the crowdsale, in an ecosystem that similar projects were raising millions of dollars.
The team continued with the development of the project still, but adoption level is nothing to write home about.
3. DOGECOINAlso created in 2014 in what looked like an unserious ambition, DOGE became a cryptocurrency that was used by its community for charitable causes. A popular case was when it was used to raise funds to sponsor the Jamaican bobsled team to the winter Olympics. This act boosted publicity for the coin and it grew.
Unfortunately, the Dogecoin exchange crashed, and the founder, Alex Green vanished with all the funds. That was it for DOGE which still exists today, but in a crashed mode with almost nothing to show for its past performance.
2. PAYCOINPaycoin fell really hard in 2015 after its founder Josh Garza fled the US while being investigated for fraudulent activities surrounding the project. The journey of Paycoin started in 2014 with a beautifully crafted whitepaper that attracted a sizeable community.
With GAW miners, who were in partnership with Garza at the time, failing to follow through with its promises, things began to go south for the project. GAW finally shut down in 2015, leading to investigation by the authorities, which led to the fleeing of Garza as mentioned above.
The community that Garza left behind have tried to revive the project, all to no avail.
1. DAOEthereum’s DAO breach of 2016 remains the biggest fail so far in the cryptocurrency industry. The promise of the Decentralized Autonomous Organization (DAO) was too good that its tokens were bought in droves during a crowdsale.
The over $168 million achievement in the DAO crowdsale was a record-breaking event. In June 2016, an attacker took advantage of a vulnerability in the DAO system and stole $50 million. This was the beginning of the end for DAO, as traders dumped the token.
Ultimately, this was what led to the eventual fork of Ethereum to create the new Ethereum platform with the Ether tokens, alongside the existing Ethereum Classic platform with token ETC.
ConclusionCoin fails are common in the crypto world and a lot of investors are still suffering from the losses sustained from failed projects. However, things are beginning to change in the industry, with the CoinJanitor project determined to revive the so-called dead coins, bringing liquidity back to their owners.
The aim of CoinJanitor is to identify “dead” coins with large communities that are unable to trade their purchased tokens, helping users who have put money into the market, get money out. CoinJanitor restores the dead coins value through JAN coins, which can be traded on several exchanges. This is an interesting arrangement that will certainly draw the attention of a lot of investors in the cryptocurrency market.
https://coins.newbium.com/post/27568-top-5-crypto-coins-with-a-lot-of-promise-that-neve
