Like any startup, cryptocurrencies startups fail a short time after launching their coins. They face different challenges. Poor planning is one of the biggest problems that might bring an organization down. 

Currently, the market holds almost 10,000 cryptocurrencies to choose from. Most people are familiar with the ten most popular like bitcoin, Dogecoin, Ethereum. Some cryptos aim to operate like US dollars, something that many companies have been trying to set up. In third-world nations, other cryptocurrencies are used to offer loans. We have another crypto that had the intention to change how the internet operates.

STOPELON coin was set up to offer a challenge to influencer Elon Musk, the Tesla CEO. Since he was protesting too much on Twitter, they wanted something to change his view on crypto. The plan for the startup was not clear to other people. Musk has been an influencer on some coins like Dogecoin, referred to as a meme joke.

With such issues, it might not surprise you to hear about crypto failings during the pre-seed season. According to statistics, almost 2000 cryptocurrencies coins have disappeared. This year, almost 10 coins have died. Some popular problems cause failure in coins, lie loss of traction, fraudster, scammers, having no plans. Furthermore, problems faced by developers are also a key factor.

Here we compile a list of the top five coins that promised but failed within a short period:

BoringCoin(ZZZ)

The company commenced its journey in 2014, a few months after launching OneCoin. Unlike another new crypto, boringCoin did not make any promises. There was no hype, drama, or dumps. It got a lot of competition from popular meme joke cryptos that occupied almost 95% of the market. Coinopsy, which was on top as joke crypto but also died because it had no purpose in the market. BoringCoin tried to stick around with its calmness, getting few investors. After realizing that the business was bankrupt, they decided to pull it down. 

In 2017, it experienced the highest prices of $0.0579. CoinarketCap data indicates how low the rate increased. Before 2018, the Coin stopped trading activities, and investors got their money back.

GetGems(GEMZ)

The GenZ people have grown up in the era of the internet. GetGems was launched in 2015 as a new messaging app to receive and send bitcoins abroad. After registration, you will get a link used as a referral to invite friends. If you managed to convince other people to join, one secured some GEMZ. The company managed to raise around $1 million during its pre-seed seasons. Daniel Peled, the CEO, wanted to expand its functionalities.

The price of a single GEMZ increased to around $0.579. After experiencing strong competition, the decision to close down. One of the employees said the company lacked a better plan while speaking to the New York Times. Only a few people lost their money, a report by blockonomist.

One Coin

Onecoin started in 2014. It was among the first cryptocurrencies companies that struggled with fraud for a long time. Co-founder and CEO Ruja Ignatova is an event organizer across the world. He once planned about the UK Wembley Arena for an international meetup. Her idea was to develop something that could offer stiff competition to bitcoin.

Thousands of people invested in the company because of her influential power. Almost $4 billion was lost in the market. The company had no internal support in 2017. Many clients filed reports demanding their shares. Some wanted the “CryptoQueen” arrested because of this.

BitConnect(BCC)

The company started operating in 2016, two years after One Coin. In December 2017, Coin was on top of the game, giving bitcoin a challenge. When bitcoin faced deep inflation, some people migrated to Bitconnect. It has the best market cap, which attracted millions of individuals. However, as time went by, it became useless.

Experts had predicted how the company’s return would increase from 0.5% to 1%. Later, people realized that the high returns it offered to long investors came from newbies. 

The platform was pulled down, and thousands of people suffered from the market. Some people took their complaints to relevant authorities, but they did not acquire their funds back. The company’s CEO had sold all the shares to others. This was a difficult case to solve, a report by bloomberg.

Also Read:

• Charitable Organizations to Accept NFTs and crypto donations
• Is Dogecoin still the Crypto’s Top Meme joke?

NanoHealthCare Token(NHCT)

Almost all the technologies are working towards better solutions in the medical industry. NanoHealthCare is among the latest Coins that failed. It started its operation in 2018. The startup was founded by Manish Ranjan, an Indian investor, and entrepreneur. 

The CEO wanted to use blockchain technology to come up with healthcare solutions. His main aim was to solve the high cost of treatment and protect data with security. 

The covid-19 pandemic made the company face many challenges. The Crypto market stumbled into with few investors. Since April 2020, there have been no tweets about NanoHealthCare. It received less support from capital ventures. Some rumors indicate that the startup did not have enough capital to run its daily operation.

For those people losing money through such cryptocurrency, it’s good to take some key points before pumping money into a new startup. Rushing to make decisions because of peer pressure never helps. Although it’s difficult to avoid falling into traps totally, there are ways we can work to protect ourselves at least 79%. Developers have also confirmed how risky digital money is. 

Top Questions that would help to Identify Failing Crypto

Do you know the founders? 

If a coin comes into the market, disclosing less information about the company and the founder are red flags. Even if the founder has a good profile, finding less information on the internet proves that they have never done such business. 

Furthermore, ensure the founders have a positive reputation in that they have never engaged in a bad act. If you have seen the green flag about their success, try it out. 

Does the Coin have a plan?

Every business must have a good plan, which is the first process before anything else. So before allocating some of your crypto investments, ensure you read their plan. Let’s be clear. Be aware of the short-term and long-term goals of the company. Research on the problem it is solving in the community. 

Don’t dive deep into technology, but understand the basics. Learn how to mine the coins and tricks used by successful people. 

Is the crypto acting like a joke?

This is where Dogecoin comes in, but it isn’t that bad. Some of the joke coins bring fun to social media platforms. There has been a question of whether people should invest their profile in Dogecoin or not. But since it supported Elon Musk, people have opted to give it a try. But experts warn against investing in another joke crypto that evolves now. It’s very risky. Most of the joke coins fail after losing their taste on social media. Currently, financial advisors are worried about the future of Dogecoin.

Is the crypto listed somewhere?

Of course, this is a major factor to consider while investing. Try to go through the top trending cryptocurrencies and see if the Coin is listed. If the new crypto has not been mentioned somewhere, take precautions. Keep in mind that almost 1000 cryptocurrencies coins are surviving but never good for investments. Read popular blogs to understand their status. You might find good hope in new crypto, but chances of survival are very minimal. 

Is there a frequent update of the website or their social media?

Looking at Nanohealthcare, its silence on social media indicates that it is out of operation. Twitter is one of the most popular social media sites for news. Investigate their accounts; if there is no post for some months, that is a red flag. The best cryptocurrencies always update their website according to emerging trends to gain traffic. It’s also okay to be a member of the community. You will find a section for community discussions and forums on some platforms. If you notice frequent complaints, just withdraw your investments.

Before you invest, just put in mind that any project can fail. There is no sure organization that won’t face challenges. Experts have insisted that crypto is risky; only invest the amount you can lose. But the top thing to do is maximum research.