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There are thousands of cryptos out there now, but some of them are currencies that are no longer active and have no significant value. If some of these cryptos have been ousted from the crypto space, there are now less than 9,000 crypto coins that you can invest in or start trading with. An increasing number of cryptocurrencies are being launched, some of which have attained the status of dead coins.
If you are also one of those people who only invest or trade with crypto or are completely unknown in this crypto space, then it will be most important for you to know what dead coins are and how you can protect yourself from them. If you are interested in Bitcoin, it's worth exploring the advancements in crypto-backed insurance, particularly with the integration of Binance USD, as it enhances the security and coverage options for cryptocurrency investors.
What Are Dead Coins?
Dead crypto coins refer to digital currencies that are no longer actively developed, traded, or supported. There are various reasons why a crypto coin may become dead or abandoned. Inadequate funding is a common factor, where projects fail to secure enough financial resources to sustain their development and operations. Furthermore, some coins may have been delisted from leading exchanges, losing accessibility and market visibility. Certain dead coins were intentionally designed as scams, such as pump and dump schemes. These projects manipulate prices to benefit a select few individuals who hold the majority of the coins while causing significant losses for others. These scam coins are essentially fraudulent attempts to exploit unsuspecting investors. Moreover, there are meme or joke coins that gain temporary popularity but lack practical utility. Examples like Jesus Coin demonstrate how such coins may quickly garner attention but ultimately fail due to their lack of purpose or real-world application.
Is Cryptocurrency Dead?
The term "dead crypto coins" may initially evoke the idea of cryptocurrencies nearing their end, but this is not the case. Despite occasional unforeseen events, numerous platforms continue to introduce innovative technologies and use cases.
Projects like Arbitrum have gained important traction and demonstrated the potential for growth within the crypto space. However, it is also true that some projects lacking a strong foundation may fade away as better platforms emerge or as technology advances and renders them obsolete. Therefore, digital currencies are characterised by constant evolution rather than an outright demise, with new developments continuously shaping the landscape of the industry.
Types Of Dead Coins
The most common types of dead coins are scam coins, abandoned coins, and meme/joke coins.
Scam dead coins
Since the first ICO launched in 2017, scam coins have been widely used by many individuals. It is advisable to steer clear of projects where the development team holds a majority of the tokens to avoid becoming a victim of scam dead coins. Bitconnect serves as a prominent example of a scam dead coin, as it was notorious for being the largest Ponzi scheme in the crypto industry.
Abandoned Dead Coins
Among the dead coins that circulate most frequently, there are several reasons behind their demise. Inadequate funding, loss of traction, or being banned from exchanges can lead developers to give up on a coin. This category also encompasses coins with limited information available regarding the reasons for their demise. Despite its potential and initial development, the project was ultimately abandoned, leaving it as a testament to the challenges faced by certain cryptocurrencies in maintaining long-term viability.
Joke dead coins
Joke dead coins, unlike other cryptocurrencies, aren't intended for a specific use case. They're typically created solely for entertainment or speculative purposes by enthusiastic individuals. While joke coins, such as Dogecoin, have gained important popularity in 2021, it is essential to recognize that many others fail to achieve similar success. For every successful joke coin, there are typically nine others that do not yield important results. Examples of joke-dead coins include JesusCoin and CryptoMeth, which highlight the existence of cryptocurrencies created as humorous or satirical experiments but ultimately fail to maintain relevance or utility in the long run.