Cryptocurrency needs no introduction nowadays, hundreds and thousands of cryptocurrencies are ruining the crypto market. However, not all cryptocurrencies stand the test of time. Many of them came with hype but couldn’t perform to the level everyone expected. These abandoned projects are called ghost coins. Their history is indeed a lesson for anyone navigating the crypto space.
Abandoned coins are nothing but digital currencies that have been put off, proven to be scams, have poor liquidity, or lack funding due to various reasons. Let’s see some of the reasons for abandonment.
Why are they abandoned?
1. Lack of adoption
When users inhibit for practical use and adoption. The project becomes irrelevant and disappears in due course.
2. Fraud
Abandoned can also happen when fraudulent operations, such as rug pulls, undermine trust in the enterprise.
3. Security vulnerabilities
It is obvious that when security breaches such as hacking happen in cryptocurrency the trust will be lost.
4. Developer desertion
When the head leaves the project, its performance will be affected, leaving it stagnant and struggling to move forward. Likewise, when the developer leaves, the project loses momentum, which is essential to pushing updates and innovation.
5. Regulatory concerns
Investors may be shelved by legal concerns around a coin, which would affect the coin’s lifespan and liquidity.
Five examples of abandoned coins are listed below.
| Abandoned coin | Background | Popularity | The fall |
| BitConnect (BTC) | Popularity via high-profile endorsements and an enthusiastic community. | Starting was smooth and gained popularity for its unique approach. The main attraction was that it was the first project to combine PoS and PoW effectively. | Shut down in 2018 following several regulatory actions. Many users have faced financial losses. |
| Novacoin | Established in 2016 as a lending and exchange platform. The website affirmed its trading bot could generate a return of up to 1% daily to around 3,700% yearly. | Established in 2016 as a lending and exchange platform. The website affirmed its trading bot could generate a return of up to 1% daily to around 3,700% yearly. | Failed due to interrupted updates and weaker adoption. |
| OneCoin | Launched in 2014 focusing on inexperienced investors. Founded by Ruja Ignatova, also known as ‘cryptoqueen’ and Karl Sebastian Greenwood in Bulgaria. Marketed as ‘Bitcoin killer’. | Launched in 2014 focusing on inexperienced investors. Founded by Ruja Ignatova, also known as ‘cryptoqueen’ and Karl Sebastian Greenwood in Bulgaria. Marketed as ‘Bitcoin killer’. | Abandoned in 2017.Exposed as a fraudulent operation. Lack of a functioning blockchain and was essentially a Ponzi-pyramidal scheme. |
| PayCoin (XPY) | Launched in 2014. Promised to be a stable $20 floor price and high returns. | Popularity via high-profile endorsement and an enthusiastic community. | Couldn’t maintain a stable $20 price and failed to keep the promise. |
| Feathercoin (FTC) | Founded in 2013 by Peter Bushnell. Introduced as a lightweight alternative to Bitcoin, which offers faster block times and better transaction speed than Bitcoin. | Offered unique value proposition | Failed to compete with larger, and more robust altcoins. |
We’ve already mentioned that all these are lessons for anyone who needs to delve into the crypto market. Let’s see what the lesson learned from these abandoned coins is.
BitConnect
The reasons for the downfall of BitConnect are as follows:
- Lack of transparency in crypto projects.
- Risks associated with high-return promises that may be baseless and fraudulent.
- Warning to recognize the red flags of schemes.
Novacoin
The reasons are as follows:
- To keep a cryptocurrency relevant, it is important to showcase ongoing development and active community engagement.
OneCoin
Failure is due to:
- Careful research is needed for projects with big promises of world dominance.
PayCoin
It is a reminder that hype without real substance could turn into failure.
Feathercoin
- Failed to keep the promises made.
- Established with speed and innovation, however, it struggled to compete in a crowded market.
Also Read: Why Smart Investors See Crypto Dips As Opportunities?
Final verdict
From the above-mentioned 5 abandoned stories, it can be easily concluded that cryptocurrencies are predictable. Many projects have started their story with sky-high ideas and huge goals, anyhow, they failed eventually due to several reasons such as lack of funds, low adoption, bad planning, etc. Everything happens quickly in the crypto world, so it is really important to do thorough research, pay utmost attention, and never fall for the hype. As we say, failure is the stepping stone to success. So, past failures will help you to avoid mistakes in the future.
FAQs
A. The disappearance of ghost coins may happen because of poor planning, scams with promises that appear to be true, and a lack of development.
A. Both regulatory bodies and exchanges help prevent ghost coins by implementing rules that need transparency, accountability, and clear information from crypto projects.
A. BitConnect, Novacoin, OneCoin, PayCoin, and Feathercoin are the five abandoned coins to name.