Filter by integration
Subscribe for weekly news & updates.
Product’s SEO for Online Sellers
New-ebook-1 Download
What Is Required to Build an eCommerce Website?
old-book Download

The Graveyard of Cryptocurrencies: Learning from the Coins That Didn’t Survive

2 minutes read
brett-sayles

Explore the graveyard of cryptocurrencies and learn valuable lessons from coins that didn't survive. This article analyzes the historical rise and fall of numerous altcoins, citing reasons for their demise, including scams, lack of purpose, and dwindling trading volume. Gain insights into how to avoid investing in doomed coins by conducting thorough research, evaluating development teams, scrutinizing use cases, and avoiding hype. Diversify your portfolio to reduce risk and consider market cap and stablecoins for a more resilient investment strategy. Navigate the dynamic crypto landscape with confidence by learning from the past and making informed investment decisions.

Table of contents

In the ever-evolving world of cryptocurrency, survival is not guaranteed. Recent research by CoinKickoff paints a stark picture of the high mortality rate among altcoins, with a staggering 91% of coins present during the 2014 market crash now completely abandoned. This article delves into the reasons behind these failures and provides crucial advice on how to avoid investing in destined-for-death coins.

The Rise and Fall: A Historical Perspective

The year 2017 saw a proliferation of new coins, with 704 emerging onto the scene, only to fade away into obscurity. However, the darkest year in cryptocurrency history was 2018, witnessing the demise of a staggering 751 coins. The reasons for these failures are diverse, ranging from scams and lack of purpose to short-lived ICO schemes and a depletion of trading volume.

Common Causes of Coin Demise

  • Scams and Security Breaches

A significant number of coins met their untimely end due to fraudulent activities. In 2022, 25 digital assets were lost to scammers and hackers, highlighting the persistent threat in the crypto world.

  • Lack of Purpose and Utility

Many coins were created without a clear use case or purpose, rendering them obsolete in a market that demands innovation and practicality.

  • Short-Lived ICOs

Initial Coin Offerings (ICOs) that failed to deliver on their promises left investors with worthless tokens, contributing to the downfall of numerous projects.

  • Loss of Interest

A common reason for coin abandonment is the waning interest of the crypto community. As trends and technologies evolve, some projects are left behind.

  • Volume Depletion

Coins that fail to maintain a healthy level of trading volume are often deemed unviable and eventually become defunct.

Learning from the Past: How to Avoid Investing in Doomed Coins

  • Conduct Thorough Research

Before investing in any cryptocurrency, conduct comprehensive research to understand its purpose, technology, and community support. Avoid coins with vague or unclear value propositions.

  • Evaluate the Team

A strong, experienced development team is crucial for a coin’s success. Investigate the credentials and track record of the project’s founders and developers.

  • Scrutinize the Use Case

Ensure the coin solves a real-world problem or offers a unique advantage over existing solutions. Coins without a clear use case are more likely to fail.

  • Beware of Hype and FOMO

Avoid succumbing to hype and Fear of Missing Out (FOMO). Make decisions based on a rational assessment of a coin’s fundamentals, rather than emotional impulses.

  • Diversify Your Portfolio

Spreading investments across different cryptocurrencies reduces risk. Avoid putting all your funds into a single coin, as the crypto market is inherently volatile. If, for example, inspired by the series Game of Thrones you bought Ravencoin with all your money, perhaps it’s time to convert RVN to ETH, BTC, BNB, XRP, ADA, DOGE, distributing their quantity properly in your portfolio.

  • Market Cap and Stablecoins

Give preference to top coins with large market capitalization, which are more likely to survive. Also look into stablecoins, whose prices closely match the value of another currency or financial asset. Also look into stablecoins, whose prices closely match the value of another currency or financial asset. For example, the USDT price is pegged to the value of the US dollar, which means it will always be approximately $1.

Conclusion

The crypto market is a dynamic and often unpredictable landscape. Learning from the failures of the past is crucial for making informed investment decisions. By conducting thorough research, evaluating projects critically, and avoiding speculative hype, investors can navigate this space with greater confidence and increase their chances of success in the world of digital assets.

Was this news helpful?

grinningYes, great stuff! neutralI’m not sure frowningNo, doesn’t relate
Share this article:
Table of contents
prev_l next_l

Also Popular on Sellbery

How to Generate API Key for Your Shopify Store: Step-by-Step Guide

If you have been working with Shopify for a long time, you should know a term such as an application programming interface. In short API. It allows developers to integrate with the platform in several ways. The process of generating it depends on the purpose of your application. You can create a personal or public application for your Shopify online store.

Shopify-eBay Integration: How to Use Channels at Once

Rule your multichannel selling and win big. Let's learn about Shopify-eBay integration, why and how we need to do it, tariff plans for both channels, and the benefits of multichannel.

Sell on Walmart Marketplace With Shopify

Did you know that you could easily Sell on Walmart Marketplace with Shopify? These two are listed among the most famous names in the eCommerce market. Their integration opens up new opportunities for online merchants who are looking for new ways to increase profit margins.

Everything You Need to Know About Starting a Wholesale Business

What is a wholesale business and how to get the most out of it? Check out the list of top wholesale items to sell and best practices for a proper start

Integrate Shopify With Amazon: Everything You Need to Know

Does Shopify integrate with Amazon? The question often arises among online sellers. High interest in Amazon and Shopify makes a lot of sense as these two are the most prominent names on the eCommerce market. As the popularity of the platforms is only rising, so does the necessity to work on both of them simultaneously.

A New Online Store Experience – What to Take Away from Shopify Unite 2019

Discover the latest advancements in Shopify's online store experience unveiled at the annual partners' conference in Toronto. Explore core updates, such as website-based sections for customizable content on any page, time-saving master pages, and pre-configured starting points for faster store setup. Dive into the convenience of portable content and the ability to draft online store experiences before publishing. Benefit from an improved user interface for intuitive navigation during store creation.

Best Online Selling Platforms

Discover the top marketplaces for your products. Visit these online markets and find the most suitable ones for you.

E-commerce in Higher Education: Educational Resources for Students

Explore how e-commerce transforms higher education. Our article provides students with convenient options by covering electronic resources such as online courses and e-textbooks.

Is It Better to Sell on Shopify or Amazon: Head-to-Head Comparison

Shopify and Amazon have become a primary choice for online sellers thanks to the offered unprecedented advantages and abilities for business growth. And the question is how to choose the one which aligns with your business goals, or, rather, is it really necessary to make a choice?

7 Shopify Integrations to Level Up Your Store

eCommerce automation helps to develop business more successfully. You save time, effort, and speed up all processes. Moreover, automated integration reduces the error rate, which means you are less likely to receive fines or customer complaints.