What are the dead and inactive cryptocurrencies? There are more than 10000 different types of crypto coins out there in the market and choosing one or a couple of them to invest in is not an easy task.
Not only you will need to choose the high or well performing coins, but you will also need to consider several other factors such as market cap, growth potential, trading volumes and lots more.
Most importantly, you should know whether or not the crypto coin you choose is active or inactive in the first place.
Ideally, not all of the thousands of crypto coins will be the same which is why you need to choose the right ones.
There may be some that are highly active which means these coins are traded regularly. On the other hand, there may be some that are inactive, which means these are either traded less frequently or are dormant.
There may even be some crypto coins that are dead signifying that the developers have left or abandoned the project.
There are different factors that are considered to list a type of crypto coin as inactive or dead. While all the factors may not be applicable to both, some of the major factors are:
- An abandoned project
- The website is down or non-existent
- Fraud or scam
- No available nodes
- Issues with wallets
- No business plan
- No social updates available
- Low trading volume
- Not enough exchange listings
- Loss of or low traction
- Ranked very low for a significant period of time and
- Incidents of premining.
However, a few coins, in spite of being inactive, can even stay current. Check out Crypto Dollar Cost Averaging Strategy.
The main reason is that these coins are still traded off and on in very low volumes or they still have a website presence and have diverted their operation.
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5 Dead and Inactive Cryptocurrencies
The inactive coins pose much higher risks in investing and trading as compared to other crypto coins. It is prudent to avoid these coins.
You can avoid them by judging their developments, liquidity, volume, ROI potential, and any activity on the social platforms.
Also, ask a few questions and find the answers to find the right crypto coin to invest in. These questions include:
- Who are the founders?
- Is it, and where is it listed?
- Is there a business plan?
- Is it a joke coin?
- Is there an active website or social media page?
Ideally, you should always go with only those crypto coins that are listed in reputed crypto exchanges such as Binance or keep this list of inactive crypto coins handy.
However, remember that there are thousands of other crypto coins that fall under this group. These are some of the major inactive crypto coins.
1. Bitconnect – A Scam
Bitconnect, or BCC, was a crypto coin that was open-source and linked with several programs that produced high yields. However, it was considered to be a scam mainly due to two specific reasons such as:
- An incredibly high payouts of up to 1% compound interest paid daily am
- A multi level marketing structure.
Though it sounded pretty impressive and attractive, this earning platform was closed by the administrators on January 16, 2018.
The users who invested their money in them were paid back in BCC but the value of the coin plummeted down to less than $1 by then from as high as $500.
Investors lost their confidence in it which resulted in a lot of criticism and its eventual collapse. Moreover, since it was tied with Bitcoin, which is known for its volatility, the rate of interest fluctuated immensely.
There were also a few legal issues that resulted in it shutting down its lending operations and crypto exchange such as the cease and desist order issued against it by the regulators from North Carolina and texas.
Also the bots that calculated the yields raised some eyebrows regarding its legitimacy.
2. OneCoin – A Ponzi Scheme
OneCoin was endorsed as a cryptocurrency but eventually proved to be a Ponzi scheme.
The most significant reason behind it is its organizational structure. OneCoin Ltd was registered in Dubai while OneLife Network Ltd was registered in Belize.
Both of these companies were founded by Sebastian Greenwood and Ruja Ignatova.
The Times described this as one of the largest scams in history. US and Chinese prosecutors prosecuted nearly 100 people and the law enforcement department recovered millions of dollars.
Most of the founders were arrested for fraud and money laundering. They typically allured new investors and used their money to pay the existing investors.
3. KodakCoin – Questionable Vetting Process
KodakCoin was launched as a blockchain cryptocurrency primary for the photographers.
The primary objective of it was to pay for licensing photographs. The project failed badly and all its operations were shut down and all mentions of it has been removed from the website.
It was developed under the licensed agreement between Kodak and WENN digital.
It was scheduled that the initial coin offering would be made on January 31, 208 but was delayed indefinitely for its questionable vetting process.
Later on, in May 2018, an agreement was made for future tokens, SAFT. However, this was not favored by the accredited investors since it limited their purchases.
4. Petro – Deceitful Means to Create Foreign Currency
The Petro or petromoneda is a cryptocurrency that was launched in February 2018 by the government of Venezuela.
This however, was not received as a good move by other countries, especially the US, because they thought it would violate US sanctions on the country.
They further believed that it would complicate the process of international financing as well.
The Venezualan government launched this coin in December 2017 with a primary intent to back the oil and mineral reserves of the country.
They hoped that it would supplement the plummeting strong bolvar or ‘bolívar fuerte’ and would circumvent US sanctions and international financing.
On 20 August 2018, the government introduced ‘bolívar soberano’ or sovereign bolívar and stated that it will be linked to the value of Petro.
In January 2020, it was decreed obligatory by the Venezuelan president Nicolás Maduro to pay for airplane fuel for international flights and government document services in Petro.
The US government thought that Petro would be just like an expansion of credit and President Donald Trump ordered prohibition of using this cryptocurrency in the United States or by any US citizen.
Other countries also agreed to the fact that Petro coins are nothing but a dictatorship of reserve currency and a deceitful way to generate foreign currency reserves, which other countries will follow suit.
5. Coinye – Infringement Lawsuit
Formerly known as Coinye West, Coinye is a dead scrypt based cryptocurrency.
It got involved in a trademark infringement lawsuit filed by Kayne West, the American hip hop artist, for using him as their mascot.
This is because Kayne did not actually have any affiliation with it whatsoever. The original developers therefore thought it was better to shun the project.
A cease and desist order was sent on January 6, 2014 stating that Coinye, that was then yet to be released, would create unfair competition, trademark infringement, dilution, and even cyberpiracy.
However, the developers changed its name from Coinye West to Coinye to avoid legal threats and even changed their domain name.
However, people called Kayne a gay fish in spite of that with relevance to the coin. This could not please Kayne and a lawsuit was filed.
The creators then thought of selling their holdings and abandoning the project.
Conclusion
Several crypto coins have failed till now and it is therefore necessary that you avoid investing in these coins.
Therefore, it is advised that you do an extensive research using different sources before taking a plunge into this volatile market.
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