95% of cryptocurrencies are fraudulent

[Alikhaki123]

In a recent speech at the annual PNWER meeting held in Montana, Neil Kashkari, president of the Federal Reserve Bank of Minneapolis, sharply criticized cryptocurrencies, stating that "95 percent of cryptocurrencies are fraud, deceptive advertising and noise," and he also said he had a more positive view of cryptocurrencies in 2015. Kashkari also referred to the large number of altcoins and called them "garbage coins."

[NotFuzzyWarm]

Duh.
Well he's right - more than 95% of them are worthless or near worthless crap coins that were created solely to line the pockets of their creators. And yes back in 2015 he would be more positive about it because there was only Bitcoin and a couple other strong coins. Not the over 100 nearly 9,000 mostly useless ones there are today.

edit: corrected my massive underestimation in the number of coins out there.

[bitmover]

Duh.
Well he's right - more than 95% of them are worthless or near worthless crap coins that were created solely to line the pockets of their creators. And yes back in 2015 he would be more positive about it because there was only Bitcoin and a couple other strong coins. Not the over 100 mostly useless ones there are today.

I agree, and I think it is always good to emphasize this for new comers.

When we see shitcoins going from 0,13 to 30 usd we all think about how much money we could be making.

But that is not that easy to find, and most of the projects  lose that value over the years... There is plenty of money to be made in the ecosystem, but it is also very easy to lose money here.

Personally, I think the majority of every cryptocurrency portfolio should be bitcoin, at least 50%. In the long run bitcoin is the safer bet here.

[Haunebu]

Almost every crypto investor is aware of this already to be honest. Regular crypto pumps and dumps over time made it pretty clear how majority of the cryptocurrencies are mostly worthless, but they have one selling point.

You could get rich overnight through these coins with a low capital if luck sides with you which is difficult to achieve through popular cryptocurrencies like BTC, ETH etc which require high capital in comparison.

This particular strategy is way more riskier when compared to investing in popular cryptocurrencies though which is why you must invest only what you are willing to lose.

[DarkDays]

In a recent speech at the annual PNWER meeting held in Montana, Neil Kashkari, president of the Federal Reserve Bank of Minneapolis, sharply criticized cryptocurrencies, stating that "95 percent of cryptocurrencies are fraud, deceptive advertising and noise," and he also said he had a more positive view of cryptocurrencies in 2015. Kashkari also referred to the large number of altcoins and called them "garbage coins."

Although a bit harsh, he did not understate the situation. From 8989 coins as of now (listed on Coingecko) 95% of them are only hype coins without utility backing them up.

Memecoins are a perfect example of this, and this is why they share a large proportion with the 'useless' coins. It is interesting how the focus was on just one side of the story... Not all coins are useless!

[TheNineClub]

I'm not gonna argue that there is a large number of deliberate scam projects and coins, however, there is a fair of coins that are legit projects that just don't make it. Now, he is specifically mentioning 'fraud, deceptive advertising, and noise', and I completely agree with fraud, however, regarding 'deceptive advertising', does this man live in the real world, because deceptive advertising is a large amount of everything in the real-life (even on some level we ourselves). Regarding 'noise', that could be those projects that never make it, so it might be a bit deceptive of him to specifically say it like that and mention an exact percentage without mentioning any studies that would conduct such a survey. So yeah...

[MFahad]

In a recent speech at the annual PNWER meeting held in Montana, Neil Kashkari, president of the Federal Reserve Bank of Minneapolis, sharply criticized cryptocurrencies, stating that "95 percent of cryptocurrencies are fraud, deceptive advertising and noise," and he also said he had a more positive view of cryptocurrencies in 2015. Kashkari also referred to the large number of altcoins and called them "garbage coins."

Maybe he is right but there is no problem if we can invest in few of those coins and get out at the right time making 10-100x profit. Trading is still profitable with these shit coins provided you know when to enter and exit.

[NotFuzzyWarm]

Although a bit harsh, he did not understate the situation. From 8989 coins as of now (listed on Coingecko) 95% of them are only hype coins without utility backing them up
....

Mein Gott in himmel! 8,989 coins   I knew there were a crapton of shit coins but nearly 9k of them is insane...

[Fesatmas]

Duh.
Well he's right - more than 95% of them are worthless or near worthless crap coins that were created solely to line the pockets of their creators. And yes back in 2015 he would be more positive about it because there was only Bitcoin and a couple other strong coins. Not the over 100 mostly useless ones there are today.

2015 made us feel more comfortable seeing all cryptocurrencies guaranteed on top of any profit, at that time we never thought that the coins in 2015 were not meant to double the pockets of their creators, but they have the desire to grow and it has been proven that the old coins are still around . and have a good image. See this time? how many piles of garbage should we choose to invest. Currently the priority is the image, while the quality is very poor. We know the coin that used to accompany Bitcoin is still the best.

[Ararbermas]

its not surprising that there's a lot of garbage coin in the market nowadays to be honest. And its because in the first place these kind of technology is out of control reason anyone can make projects immediately without any authorization even some of them are not professional and sometimes the intention is to scam other people, that's why as well a lot of people saying investing is very risky aside of being so volatile of it .. So expect more in the future mate, because copy pasting is the common way where some frauds can earn money such copying the idea and features of good project just to get attention,. And  best example for that are those meme coins. Lol

[Mahanton]

In a recent speech at the annual PNWER meeting held in Montana, Neil Kashkari, president of the Federal Reserve Bank of Minneapolis, sharply criticized cryptocurrencies, stating that "95 percent of cryptocurrencies are fraud, deceptive advertising and noise," and he also said he had a more positive view of cryptocurrencies in 2015. Kashkari also referred to the large number of altcoins and called them "garbage coins."

Well, i could really agree into those words on talking about shitcoins that been flooding out into the market.I could even say that 99% of them are trash and 1% is only having their actual utility or relevance into their existence and this is why as an investor then you should really be wise on selecting which one you would really be investing or putting your money on. You couldnt really expect more with these banksters to have these
common views towards in crypto market and its just good that he had at least have some supportive mind wayback in 2015 but well everything do really changed up.

[stompix]

Although a bit harsh, he did not understate the situation. From 8989 coins as of now (listed on Coingecko) 95% of them are only hype coins without utility backing them up.

So, you're saying that 450 coins listed there have actually some utility and are used for anything other than trading?
I would easily cut that number to 50-60 at most, including some that only promised new stuff that for sure they will never be able to deliver.
And those are only the coins that got listed, how many ICOs did we have that just grabbed the money and never did anything else, how many with just dumping some useless token on buyers and disappear?

Mein Gott in himmel! 8,989 coins   I knew there were a crapton of shit coins but nearly 9k of them is insane...

Why so surprised?
We have 39k topics in altcoins announcements and about 9500 in tokens announcements.
If we count every project that has ever been published I'm willing to bet on at least 70k-80k coins.

[bosede1]

There is nothing you see in this world that some set of people cannot do fake or do fraudulent acts for, I don't know if this scenario is conversant in your country but in mine yes. You will see some people telling you they are calling from your banks and collect some certain information and dupe you of your hard earn money.

[haleema]

In a recent speech at the annual PNWER meeting held in Montana, Neil Kashkari, president of the Federal Reserve Bank of Minneapolis, sharply criticized cryptocurrencies, stating that "95 percent of cryptocurrencies are fraud, deceptive advertising and noise," and he also said he had a more positive view of cryptocurrencies in 2015. Kashkari also referred to the large number of altcoins and called them "garbage coins."

It's Right, there are lot of new Altcoin projects coming on daily basis in market and selling coins and close project and start new project of new names, but still we have so many interested investors and most of newbies they are not fully learned and victim in scammed, In my opinion if you invest in bitcoin, Eth, Bnb, etc you are safe, investment in other shit coins is risky.

[DeathAngel]

It’s probably not far wrong. So many new tokens & coins are centralized bull shit, total scams. You might get lucky & invest in something that does a 100,000% price increase but it’s more likely you’ll get scammed or it turns out to be total junk. Just play it safe & buy bitcoin, leave it for 10 years & you are guaranteed big profits.

[agg2702]

it's a shame but the reality is sometimes like that even though it looks very rude but indeed if we look at some cases where there are coins and tokens on several sites are the average leftover from hype fomo coins and then the pump and dump results.
but this can't be prevented because everyone is free to do anything here including those who make the coins for their own benefit.
but on the other hand we have our own research and observations on some coins that are indeed good coins and this must be used, not just looking at the coin from the side that displays the fomo hype and pump and dump side.

[Imran232]

Duh.
Well he's right - more than 95% of them are worthless or near worthless crap coins that were created solely to line the pockets of their creators. And yes back in 2015 he would be more positive about it because there was only Bitcoin and a couple other strong coins. Not the over 100 mostly useless ones there are today.

I agree, and I think it is always good to emphasize this for new comers.

When we see shitcoins going from 0,13 to 30 usd we all think about how much money we could be making.

....................

Yeah sir i also agree with you. And one thing not only 30 usd it reach even more by creating fake volume.

There has some mistake what we have done that when we seen a project price increased a huge percent and it has volume (we don't research is this could be fake volume) we take entry without any second thought. Not only that in my research i have seen some major link what this type of coin done to attract people.

1: Hiring some influencers by paying or running giveaway through twitter, instagram, telegram channel/groups, and youtube too. And introduced them as a marketer of their project.

2: Listing their project some knowing exchange by paying there fees. And generate fake volume though team.

3: Then shows those volume to list it on Coingecko or Coinmarketcap. (Because according to coingecko and coinmarketcap need volume what already team generated)

In this type of work they might spend maybe upto $50k to $100k+ but not maybe more than $1M-$2M. But then they loot millions of dollar from users. Then they gone with multimillion dollar then after some days they comes with others project, others name and repeat same strategy.

[The Cryptovator]

Whoever said it, that's the truth. There are a few major cryptocurrencies that have real uses or are accepted by merchants. But others have no uses except trading on the exchange. Actually, trading wouldn't consider as the use of cryptocurrency. It's just a money-making/losing game. Someone losing and someone making money. Most altcoin projects do not have a real concept. You can't find them once they raised funds. They will just list on few exchanges and hide.

[hugeblack]

If a person cannot be convinced of what Bitcoin can offer despite all the technical developments and the possibility of its global acceptance, it is natural for him to see that the huge number of altcoins is considered garbage and does not deserve a quarter of the current market capacity.
Frankly, everyone who invests in altcoins is trying to buy an illusion that may not come true one day.

[rosenbauer02]

Many of those fraudulent altcoins started popping up on 2018 as it is the year of the garbage coins if you called it like that. There may be legit ones but only limited like 1 out of 10 altcoins. That is why I agree with op. Some altcoins created after fundraising and successfully made it but didn't survived in the long term so yeah 95% are scams. 1/10 is not even the same as 95% out of 100%, more like 0.5 out of 10.