Please be aware: cryptocurrencies can fail due to lack of regulation

[BlockchainWizard]

When we need to review a cryptocurrency if it’s legit or scam, we need to make sure to do a proper research. Like for every investment, we need to check it frequently and evaluate how to proceed. It is similar for Altcoins and very important.

Crypto currencies are a very fast evolving field of investment because of crypto technology.
Innovation is changing opportunities quickly and we need to select good Crypto coins for it.

Crypto is not regulated

Unfortunately, crypto coins are not regulated yet and we will see many fraud coins to be available for buy and we should avoid it. Due to a lack of regulation, we need to do a research ourselves and find out if a coin is legit or scam. Until coins are fully regulated, we need to do a research ourselves.
We should always review coins to prevent a loss. When a coin is reviewed badly by experts, like Tron and EOS have received bad reviews by experts, it is time to sell quickly.
But it’s even more important right now to sell all outdated Altcoin bags like Tron and EOS.

Why can unregulated Altcoins fail?

Altcoins are very volatile and many Altcoins have failed so far. Many ppl have lost money by holding failed coins. Altcoins are not regulated yet and it poses a big danger for us.
But how can we make sure to avoid such failing Altcoins?

We should have a very close look to such Altcoins and try to find out about very important details:

- Is it a promising coin where new technology is used? For example, Litecoin and Nano are using a very old technology.
- Are developers very experienced and professional to set up a good Code?
- Is it a coin involved in fraud (like BSV, Ripple or BCH)
- Is it a coin where security has been good or weak (avoid hacked coins)

Because if coins are not interesting, have not good tech or people are not interested in it, such coins will fail. Many coins are fraud, where we can’t trust owners.

When we have done our research, we can know why some coins will fail and how to avoid it.

Many coins have been started when Cryptocurrencies were less developed and much less innovative.
And here it is a big problem for many Altcoins: using outdated Blockchain technology.

A good example for such an issue is Tron.
Tron was developed from Justin Sun to compete against Ethereum 1.0.
But Tron was such a badly coded coin, it couldn't even compete against Ethereum and lost many marketcap against Ethereum.
Now, since Ethereum 2.0 is launched, Tron is completely embarrassed because of it's old tech.

Tron is based on an old technology where more innovative coins are outperforming Tron massively.
Tron is losing relevance very quickly compared to such new and more modern coins like Ethereum 2.0, Avalanche or Algorand.

One more old coin is EOS. It could not meet expectations and was even place 5 in market cap until it is now very irrelevant. People still holding EOS are having a big loss.
Lucky, who got out timely, to prevent a loss.


Conclusion

A lack of regulation is usually very bad for us because it enables fraud. Instead of an institution, where we can rely on, we have to do a research ourselves, which coins are fraud, outdated or just not good enough.
We should sell such outdated coins like Tron because such coins will become more and more obsolete over time.

[Ruttoshi]

It's not regulation that will make shitcoins not fail, because we have more than 100000 shitcoins out there in the market and more are still going to come out over time. No matter the research that you do about shitcoins, you will not know the coin can will give you profits in the long run. I see shitcoins as a gambling tools for gamblers and not for long-term investors.

To avoid wasting your time looking for the shitcoins that are less shitty, it's better that you invest in bitcoin and forget about regulations or research, because bitcoin is decentralized and beyond censorship. The value of bitcoin increases overtime, so you have nothing to worry about. Etherum have failed to reach the last ATH making it useless to tie up your funds in it.

[Woodie]

Regulation alone can never make the crypto industry fraud proof and thats a fact we all know!!

Just like in the real world scenario say when you are buying say Nike shoes, its the buyers obligation to know what a knockoff looks like and how original Nikes should look like for example the tags, the material etcetera and this is called Due Diligence!

Same with cryptocurrencies, you should know which blockchain Bitcoin (or other altcoins) belongs to, other information of current coins in circulation and all the small facts about it and you will avoid the fake BTC...

Otherwise as a rule of thumb..with or without crypto regulation,  due diligence never stops as a way to protect our hard earned money and have legit investments.

[SquirrelJulietGarden]

Why can unregulated Altcoins fail?

Altcoins fail because they don't have capable founders and developer teams but not because of lack of regulation on altcoins.

Do you see many business failed under strict regulations?
Do you see bank collapsed, bankrupted under already existing strict regulations?
Many other examples beyond blockchain, cryptocurrency and altcoins about failures of regulations to protect people from scam companies.

An opposite question:
Do Bitcoin need regulations to succeed?

[Helena Yu]

Can I know where's the "regulation" role in this matter?

Having regulation doesn't automatically mean it won't fail or it's legit, take example with stock.

It's easy for any company to run IPO, they only need to create a company without need to build a physical building, having specific minimum amount, having few shareholders etc. They meet all the requirements, run it, after many people buy their stock, they can exit and make their company suffer loss and then bankrupt.

Which mean, having regulation won't make cryptocurrencies are safe.

[Mehmet69]

When we need to review a cryptocurrency if it’s legit or scam, we need to make sure to do a proper research. Like for every investment, we need to check it frequently and evaluate how to proceed. It is similar for Altcoins and very important.

Crypto currencies are a very fast evolving field of investment because of crypto technology.
Innovation is changing opportunities quickly and we need to select good Crypto coins for it.

Crypto is not regulated
Unfortunately, crypto coins are not regulated yet and we will see many fraud coins to be available for buy and we should avoid it. Due to a lack of regulation, we need to do a research ourselves and find out if a coin is legit or scam. Until coins are fully regulated, we need to do a research ourselves.
We should always review coins to prevent a loss. When a coin is reviewed badly by experts, like Tron and EOS have received bad reviews by experts, it is time to sell quickly.
But it’s even more important right now to sell all outdated Altcoin bags like Tron and EOS.

Why can unregulated Altcoins fail?
Altcoins are very volatile and many Altcoins have failed so far. Many ppl have lost money by holding failed coins. Altcoins are not regulated yet and it poses a big danger for us.
But how can we make sure to avoid such failing Altcoins?

We should have a very close look to such Altcoins and try to find out about very important details:

- Is it a promising coin where new technology is used? For example, Litecoin and Nano are using a very old technology.
- Are developers very experienced and professional to set up a good Code?
- Is it a coin involved in fraud (like BSV, Ripple or BCH)
- Is it a coin where security has been good or weak (avoid hacked coins)

Because if coins are not interesting, have not good tech or people are not interested in it, such coins will fail. Many coins are fraud, where we can’t trust owners.

When we have done our research, we can know why some coins will fail and how to avoid it.

Many coins have been started when Cryptocurrencies were less developed and much less innovative.
And here it is a big problem for many Altcoins: using outdated Blockchain technology.

A good example for such an issue is Tron.
Tron was developed from Justin Sun to compete against Ethereum 1.0.
But Tron was such a badly coded coin, it couldn't even compete against Ethereum and lost many marketcap against Ethereum.
Now, since Ethereum 2.0 is launched, Tron is completely embarrassed because of it's old tech.

Tron is based on an old technology where more innovative coins are outperforming Tron massively.
Tron is losing relevance very quickly compared to such new and more modern coins like Ethereum 2.0, Avalanche or Algorand.

One more old coin is EOS. It could not meet expectations and was even place 5 in market cap until it is now very irrelevant. People still holding EOS are having a big loss.
Lucky, who got out timely, to prevent a loss.

Conclusion
A lack of regulation is usually very bad for us because it enables fraud. Instead of an institution, where we can rely on, we have to do a research ourselves, which coins are fraud, outdated or just not good enough.
We should sell such outdated coins like Tron because such coins will become more and more obsolete over time.

You are right. Cryptocurrencies are not controlled by the government. Because the basic principle of cryptocurrency is decentralized. But does reality work as we think? Is it true that there is no government interference in cryptocurrency?

My answer can be yes. Currently, there are many countries where the government has introduced regulations on crypto exchanges. Before trading, they have to inform the government about who is trading through KYC. Again, in some countries, the government has also made arrangements to collect taxes on crypto income. There are also some other cases, which look like the government can keep an eye on us. Because if a currency is forged, the government can take action against it. If someone does something illegal, the government can take all measures against him, if necessary, seize accounts or funds.

After seeing all this, should we say that the government cannot control us. But yes, the government cannot control cryptocurrency 100%. So we should examine ourselves to keep our investments safe. We can never completely trust others when it comes to investments.

[lionheart78]

The creation of cryptocurrency is indeed not regulated even Bitcoin technology is not regulated, but it is used by regulated companies.

About the success and failure of a certain cryptocurrency, it is not dependent on the regulation but rather on the strategy and how the project developer strive to make the cryptocurrency successful.  So it is more than regulation before a certain cryptocurrency succeed.

Most of the alternative cryptocurrencies failed because they were only created for a money grab.  The project owner only intends to enrich themselves and is not actually concerned with the success of the project.  This is also one of the major reasons why cryptocurrency become worthless or worst means to scam people of their money.

[KiaKia]

A shit coin will forever be a shit coin, there is no coming back from that, even regulations can't safe a shit coin. I do like the idea of regulation though because it will or should reveal bad projects with bad devs easily.

There are many shit projects that have ran away with investors fund because they are not regulated, no one to go after them and this is even why some developers behaved in the manner.

Altcoin space especially is the most brutal one of them all, few projects have rug pulled in my front since 2022 and I was a victim of four, these projects are with developers that are visible, they have did alot of seminars and the utilities are very good.

Unfortunately these projects turned scam, either they failed because of market conditions or they are the ones that decide to scam people no one will ever know. But if regulation is in place, investors won't bother with projects that are not regulated to atleast have peace of mind.

[Sir_Cheer]

The whole main premise behind crypto is to not have regulations. Having regulations completely defeats the purpose. That's what central banks are for. If you want regulations, get out of crypto and go back to the central bank. The whole point of crypto is to put the financial system back into the hands of the people. Rug pulls come and go. I think any attempt to fight rug pulls with regulations would stifle innovation in the industry and stop people from trying new things. Exchanges and developers don't want to add mountains of paperwork, red tape, and hoops to jump through to an operation that is already extremely difficult. Most projects are based on trust me bro, and that's what makes it difficult. Its a minefield. You would be amazed how many rugged projects actually started up with good intentions, with the goal of climbing the mountain that ETH and BTC climbed. The problem is: they're run by a couple of kids who met on a discord server and don't realize what all goes into climbing that mountain. They think that all they need is good tech, and the price will rise by itself. That's just not how it works. It's so much more involved than that. I think regulations will make it significantly more difficult. I like crypto how it is now. DYOR, and invest at your own risk. Learn how the game works.

[Alpha Marine]

I understand that anyone can develop a coin today and just rug pull people whenever they want, but that is not the only reason that makes coins shit. Assuming there was a regulation, a coin can meet all the criteria of the regulation and still be shit.
There are a lot of coins that are still being traded in the market today that are absolute shit. First things first, when a coin has an unlimited supply, there's a 99% chance that coin will be shit because it will never be scarce. A coin that is never scarce will never have value because no matter how high the demand is, the supply will always be more, and after a short period, it will start depreciating in value. There are so many coins like that.
You'll see coins with so much market cap, but their prices are just a little over $1. No every
There is nothing regulation can do about a coin that is just shit.

Btw, why are people still considering altcoins are a coin you can rely on for the long term? Most of these coins have not beaten the ATH they had 2 to 4 years ago. If you must invest in altcoins, it has to be short-term. take profit whenever you can and bounce