We have zombies from past crypto eras lurking on some exchanges and personal wallets: they’re called ‘deadcoins’. Sometimes, you can't tell a "live" coin from a dead one at first glance. If you hit buy or trade, the rotten thing might stay with you forever. Not a pleasant experience.
Deadcoins are cryptocurrencies that have lost all or most of their value, have no active development, or have been abandoned by their creators and community. This can happen for various reasons, like scams, lack of interest, or poor execution of the project. Essentially, they’re digital assets that no longer have a viable future and are considered defunct.
But here’s the catch: they may keep existing in some networks, and could still be available for trading on some DEXes. So, they’re like zombies, running around as they were programmed, but with no one to maintain their codes, make new plans, or even use them. They may keep some price and/or a low trade volume, depending on the coin, but it’s just zombie activity. Once in your portfolio, they’ll likely rot in there forever.
Cryptocurrencies die for several reasons, and one common cause is the lack of interest or demand. Without enough users or investors, the project can’t sustain itself, leaving it with no real value. Another key reason is poor development; if the team behind the coin doesn’t deliver on their promises or the technology isn’t strong, people lose trust and abandon it.
However, sometimes they’re created with the specific purpose of being deadcoins soon.
Besides, competition in the crypto world is fierce, and if a coin doesn’t stand out or offer something unique, it can easily get overshadowed by more successful projects. Lastly, regulatory issues can kill a coin, especially if it’s new or has a small community. Governments might crack down on certain projects or declare them illegal, causing their value to plummet. When a coin faces legal trouble, people may be less likely to invest, and it often fades away.
You may think that deadcoins exclusively come from those shady Initial Coin Offerings (ICOs) from 2017, scams and frauds, old jokes, or projects that never had enough relevance, right? Well, then you’d be wrong.
Spotting deadcoins versus live projects, or those simply going through tough market conditions, requires attention to several key factors. A deadcoin often shows little to no development activity. If the team behind the coin has stopped updating its technology, releasing new features, or engaging with its community, that’s a red flag. In contrast, a live project going through a rough patch will usually still have active development and a committed team working to improve the situation, even if the market value has dropped.
Another sign of a deadcoin is low or non-existent trading volume. If the coin can barely be traded on any major exchanges or only shows minimal movement, it indicates that there’s no interest or liquidity. On the other hand, coins in a market slump may see reduced trading volume, but they will still be available on multiple platforms, with some level of ongoing buying and selling, showing people haven’t completely lost faith.
Community engagement also tells a lot. Deadcoins tend to have stagnant social media, forums, or developer channels, with little interaction or discussion. Live projects, even if struggling, will have active communities discussing solutions and the future. An engaged community often means that the project is still alive, despite setbacks.
You can also sum it up with three questions: is the team long inactive on social media and code repositories, especially on X (Twitter), Discord, and GitHub? Is trading the coin nearly impossible? Are the founders in jail or running away from authorities? —yes,
Determining if a cryptocurrency is on the verge of dying can be tricky, but there are clear signs to watch for. One major factor is the absence of recent development activity. If a project doesn’t share a clear vision for future updates or improvements, it may indicate uncertainty or stagnation. Additionally, reduced community engagement is a strong indicator. If online forums and social media channels become quiet, it suggests that users are losing interest, which can be detrimental to the coin's overall health.
Another concern is negative publicity or ongoing controversies surrounding a coin. Regular scandals, public exploits, or legal troubles can damage a cryptocurrency’s reputation, leading to a loss of trust among investors. Additionally, a lack of partnerships or real-world applications can hinder a project’s growth. Coins that struggle to find use cases or secure collaborations with other projects or networks often find it hard to gain traction and may face challenges in maintaining relevance.
In contrast to the above,
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