Digital Currencies That Flopped; What Were The Main Cause Of Their Failure?
Cryptocurrency has become a very popular digital money technology today, with many people from worldwide seeking knowledge on how to buy Bitcoin anonymously, where to store Cardano, etc. Well, it is never always green, there have been digital currencies that tanked down due to pathetic planning and fraud schemes. These are a number of major reasons that result in the failure of cryptocurrencies.
There are ten thousand cryptocurrencies available in the market. Among them, some come with a goal of establishing themselves as currencies having the potential to take the place of dollars in your wallet. Whereas others are in competition in providing loans that are easy to afford in the countries that are in the phase of development. There are also some that claim to revolutionize the internet.
Well, there are few with not many towering goals. As an example, there is a $STOPELON coin that was framed to face-off with the volley of tweets by Elon Musk, the founder and CEO of Tesla in the cryptocurrency market. Well, what was the strategy behind this is not clear. But according to Tesla founder, there are coins that claim to match the success of Dogecoin in being funny and via memes.
Keeping that in mind, it is nothing new to witness the failure of various cryptocurrencies. Rather, it has been reported that more than 1000 coins have met their dead end, ever since the inception of foremost cryptocurrency Bitcoin on 3rd January 2009. According to a dead coin tracking site, it has come out that around 9 coins have already been waned in recent years. The reason for the failure of these crypto coins or their abandonment comes with following reasons:
- Fraudulent activities and scams
- Losing the track
- Develops encountering personal issues
- Failing to proceed with business planning further
Some of the digital currencies that flopped
The above given key points are the major reasons of failure of a cryptocurrency. Now let us list down some of the names below with the reasons on why they failed.
NanoHealthCare Token
NanoHealthCare token is one of the failed digital currencies that failed to make its impact. By looking at some of the older cryptos, we discovered that there have been new coins, NHCT is the one such included name. This creation of this failed cryptocurrency came in 2018, by Manish Ranjan, with a motive to revolutionize the healthcare reality. It had set a goal in utilization of blockchain technology to bring positive impact on lives via resolving the structural healthcare matters like high pricing and safety of data.
BitConnect
Coming on to the next is BitConnect. This cryptocurrency was launched six years ago. It carries the stain of not only being a failed cryptocurrency but also of fraudulent crypto coin. However, in 2017, December, it became a all-time high hit, and was even listed among the top performing coins list during the year.
But it failed to sustain its success and tanked badly in a few months. Its hostile marketing came up with promising returns of 0.5% to 1 percent each day with other incentives. But later on it turned to be a pyramid scheme. The new investors funded the high returns that were paid out by BitConnect. And when fall down, there was nothing left for the people.
GetGems
GetGems also joins the list of failed cryptocurrency. It was an app meant for social messaging that let sending and receiving of BTC by the users. With this they could pile up with more GEMZ by including their friends and urging them to sign up. Daniel Peled is the person who is behind the foundation of GetGems in 2015. $1 million was the figure that was raised roughly via crowdfunding and investment (direct). And in the end, failed to deliver. According to a well-known price tracking website, the price of GetGems made a huge hit with $0.0579 in 2017 May, until the trading came to a complete halt.
OneCoin
OneCoin made its debut launch in 2014, and was one such example of early fraudulent fraud in cryptocurrency. Ruja Ignatova, with self-named ‘CryptoQueen’, was the host of superficial events worldwide. United Kingdom’s Wembley Arena is one example. She made big claims calling OneCoin the Bitcoin Killer.
But what was being presented turned out something else. OneCoin turned out to be ponzi scheme of $4 billion. Millions of investors were duped with this fraud. The money was cleverly carried cheating the existing investors promising them with pay returns from the newbie ones. In 2017, there was no trace of the founder of OneCoin, Ruja Ignatova, at the time of closure of the net. However, an arrest warrant was filed against her by the police.
BoringCoin
Now this sounds funny for sure. But at the same time it matches with its fate of failure. BoringCoin came into being on 2014. It came up with the promise showing no pump and dump schemes and unnecessary drama. Akin to speculated ninety-five percent of meme coins, BoringCoin failed to make its mark and collapsed. Later on, it joined the category of dead coins, because of being a joke or of no use. Or rather, we can say it really lived up to its name ‘Boring’.
Final words
So these are the digital currencies that failed to make a mark in their purpose and were turned out scams leaving people and investors cheated with their fraudulent tactic. Or maybe developers lost interest in them and left the project mid-way. They failed to move further with business plans. Log on to Cryptoknowmics to know more about dead coins and Binance vs Kraken.
