The top three cryptos BITCOIN, Ethereum, and Ripple could soon be the hindmost coins standing with over 800 competing cryptocurrencies known to be “dead” according to a website collecting crypto scams and deserted projects.
The cryptocurrency bubble toward the end of 2017 brought many cryptocurrencies to the market and strive for the recognition of investors consumed by worldwide exposure and the prospect of getting rich quick. These Initial Coin Offerings (ICO) made money from gullible investors using little more than some code and a speculative white paper outlining the coin’s objective.
Yet with bitcoin, the outstanding cryptocurrency having declined from over $19,000 in December last year to just over $6,000 today, the enthusiasm for unpopular coins has also subsided. Deadcoin.com has been busy listing all the crypto scams, jokes and deserted projects and the list has now hit 800 cryptocurrencies, considered ‘dead’ – trading at less than 1 cent.
The 800 ‘dead’ coins include the Detector token (DTCT) after it was listed on the site as has had “no communication or tweets for over 8 months now.”
SipsCo (SIPS) Сoin “died after 10 days on coinexchange”.
Bchconnect (bchc) is now known as a “lending scamcoin.”
Another coin named ‘Useless Ethereum’, currently worth $0.013425, was launched as a joke, poking fun at just how willing investors were to invest cash in projects without contemplating the outcome.
On the underlying value of their proposition, Useless Ethereum said: “You’re going to give some random person on the internet money, and they’re going to take it and go buy stuff with it.
“Probably electronics, to be honest. Maybe even a big-screen television. Seriously, don’t buy these tokens.”
Despite this warning, an investigation from which reports that the coin’s launch raised $30,000 and still has a market individualization of $53,240 as stated by CoinMarketCap.
The abortion of the 800 coins is expected to have burnt through billions of dollars with companies raising a tremendous $3.8 billion through ICOs in 2017.
However, the money lost could yet rise with a gigantic $13.7billion raised in the first six months of 2018. Contelegraph warns that some $1 billion of that was raised by coins that are now considered ‘dead’.
For those who invested in obscure cryptocurrencies, the misery is set to continue with Bloomberg warning last month that most money has been sunk into “scams”.
Predicting more misery for investors, analyst Aaron Brown, said: “There has obviously been significant fraud and hype in the ICO market. I have seen 80 percent of ICOs were frauds, and 10 percent lacked substance and failed shortly after raising money.
“Most of the remaining 10 percent will probably fail as well.”
ICO advisory and analysis firm, Satis Group Data, states that over 80 percent of ICOs with a $50 million market cap and above are scams. Another 11 percent of projects have according to the research, failed or gone dormant.