It is widely known that in the crypto world, many projects don’t survive, and some of them even don’t manage to stay afloat after the initial sale. It concerns not only some unknown meme coins but also projects that were enjoying significant support from their communities and relied on the trust of users.
The main indicators of the dead coins are the following:
- InactiveX
- Not listed on exchanges
- Inactive development
- Website down
So, what are those coins that were popular and trusted and still couldn’t make it till now, and what are the reasons for their demise? Let’s explore.
BitConnect (BCC)
BitConnect takes the spotlight as one of the "dead" coins, suspected to be a massive crypto scam. Launching in January 2017, it quickly soared to a $2 billion market cap, raising eyebrows and sparking rumors of foul play. By late 2017, investors publicly accused it of running a Ponzi scheme.
Critics, including billionaire Bitcoin investor Mike Novogratz, didn't hold back, labeling BitConnect a scam that tarnished the industry's reputation. The controversy stemmed from its lending program, which promised hefty returns but lacked transparency about its operations. Many suspected it operated as a pyramid scheme, fueled by deposits from new investors.
As scrutiny intensified, regulators stepped in, forcing BitConnect to shut down its lending program and exchange in early 2018. Lawsuits piled up, and U.S. authorities launched investigations, ultimately freezing its assets. BitConnect's downfall served as a cautionary tale in the crypto world, reminding investors to stay vigilant against potential scams.
OneCoin
OneCoin was pitched as a cryptocurrency but turned out to be a Ponzi scheme run by OneCoin Ltd., based in Bulgaria. Launched in 2014, it was heavily promoted by Ruja Ignatova, known as the "CryptoQueen." Despite starting at $0.02, its value plummeted to $0.0008661.
Many were drawn to OneCoin because it was hyped as a rival to Bitcoin. However, it operated like a classic Ponzi scheme, using money from new investors to pay off existing ones. In the end, investors lost a staggering $4 billion.
XEM
XEM is the token of the Nem (New Economy Movement) platform, a cryptocurrency launched in March 2015, with active development starting in 2016. What makes XEM stand out is its original open-source code, which enabled it to introduce many useful innovations.
You can buy, withdraw, and trade XEM on various exchanges. It's handy for quick transfers and global payments with low fees. You can purchase it online or with cash and exchange it for other currencies. XEM has grown popular, ranking among the top 30 cryptocurrencies by market capitalization, according to Coin360.
However, things took a downturn in January 2018 when Coincheck, a major Japanese cryptocurrency exchange, confirmed a massive theft of $123.5 million worth of XEM tokens.
Operations with XEM and other altcoins were halted as Coincheck dealt with the fallout. Rumors even suggested further thefts totaling $600 million. Coincheck officially reported losses of 58 billion yen ($123.5 million) to Japanese authorities and promised to find ways to reimburse users. Despite efforts to reassure users, news of the hack caused XEM's value to plummet.
Gems (GEM)
Gem Coin (GEM) stands out as a rather peculiar scam. Its founder claimed that these virtual gem coins, similar to NFTs today, were backed by real gems mined by his company, U.S. Fine Investment Arts, Inc. (USFIA). He also said you could trade these virtual gems on the USFIA platform.
The catch was, the value of these virtual coins supposedly went up as the company sold more gemstones. But here's the kicker: USFIA didn't actually own any gemstone mines. Steve Chen, the brains behind the operation, was slapped with charges related to a whopping $147 million scam.
Universa
Universa, a project based in Russia, made waves by raising $28 million in its token sale in December 2017. Their aim was to build a blockchain platform tailored for business applications using the speedy Universa blockchain protocol, capable of handling up to 22,000 transactions per second (TPS). A key selling point was their partnership with Ernst & Young (EY) and Alfa Bank, a leading Russian bank, which boosted Universa's reputation as a trailblazer in the domestic blockchain industry.
Adding to the project's allure, John McAfee, the founder of MGT Capital Investments and the creator of McAfee Security anti-virus software, joined Universa's advisory committee led by businessman Alexander Borodich.
Once the market hype died down, internal conflicts among the project's management surfaced, leading to legal battles over allegations of tarnishing the business's reputation. While they sorted out their differences, token trading volume struggled to reach $42,000 daily, with liquidity nearly non-existent, prompting HitBTC exchange to remove the cryptocurrency. Despite these setbacks, the project remains active, forging ahead with new endeavors.
Bitcoin Diamond
Bitcoin Diamond (BCD) emerged in November 2017 as a fork of Bitcoin, splitting from the main Bitcoin chain after block #495866. Like its predecessor, BCD aims to serve as a convenient digital currency for online transactions. All Bitcoin holders received BCD tokens automatically at a ratio of 1 BTC to 10 BCD, with a maximum supply capped at 210 million tokens. Initially, 170 million tokens were released and distributed among Bitcoin holders.
Bitcoin Diamond introduces several key differences from Bitcoin:
- Block size increased to 8 MB, eight times larger than Bitcoin.
- Implementation of a new encryption method to address privacy concerns.
- Faster block processing, reducing transaction confirmation times and costs.
The project's roadmap once promised to surpass Bitcoin in terms of utility by 2020. However, uncertainties surround the completion of the project, raising questions about its future. Major players in the crypto industry, such as Ledger, have raised concerns about Bitcoin Diamond's involvement in fraudulent activities. Reports indicate that users fell victim to phishing schemes, resulting in the theft of BCD tokens through cloned cryptocurrency websites. With it, the project came to a demise.
Emercoin
Emercoin is considered a bit of a disappointment in the cryptocurrency world.
The project kicked off back in 2013, but it didn't hit popular exchanges until 2014. Originally, Emercoin was meant to be a way to pay for stuff online. Nowadays, you can use Emercoin to buy things and handle transactions in various tech solutions that run on its blockchain. But it hasn't really caught on or offered much that gets folks excited. Still, the developers say Emercoin will soon turn into a unique platform that protects websites, copyrights, and more.
Despite their efforts, Bittrex decided in late June 2019 to remove a bunch of altcoins with low trading activity, including Emercoin (EMC).
Bottom Line
With an increasing number of dead projects in the crypto space, it is not surprising that some joke projects and meme coins appear and disappear rapidly. But there are coins that were supposed to change the world of crypto and enjoyed incredible popularity when they were launched. So, before considering purchasing a coin, check whether it has the potential to survive in the rapidly developing crypto environment.