What is Deadcoin (Type/Categories of Cryptocurrency)
Definition/Examples
- Just like shitcoin, deadcoin is also not a real categories of cryptocurrency but a way for investor to describe any cryptocurrencies that is no longer actively developed, has little to no community around it and no user interaction.
- As of 21st of October 2023, there are currently around 1700+ deadcoins that once or still exist in the crypto market (Information obtain via 99bitcoin.com). Most of this deadcoins was never been heard of and that might have become one of the contributing factor that makes it a deadcoin.
- This amount contributed around 20% of all cryptocurrencies that exist in the crypto sphere.
- Some examples of deadcoin is Bitconnect (BCC), VegasCoin (VEGCOIN), and 0xBitcoin (0xBTC).
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Different Type of Deadcoin
ICO Deadcoin
- ICO or Initial Coin Offering is done before or in the first year of a certain token in release to a certain crypto exchange. If done right, investor who get a token from ICO will be leave with huge profit when the token got release into the crypto exchange.
- Sadly, around 60% of token that was offer during ICO already failed before it even got release to any crypto exchange and some of them also failed in their first year of release.
Joke Deadcoin
- This type of coin usually was release as a joke and the developer doesn’t have any mean to get any profit from the coin they created. It can be fun to invest in a joke coin because most of them has little to no value.
- You sometimes can get million of supply for this coin with little investment (as little as 1 cent). If a joke coin was release by popular developer, the hype usually last ranging from 1 weeks to 1 month before the price dump and it becoming deadcoin. Theoretically, some jokecoin can last for 1 year and above but it is really rare to see it happen.
Scam Deadcoin
- This one is the easiest to explain. A scammer will hype a token in a crypto exchange by using false promise about the crypto value and other thing.
- People then buy it and scammer will wait until it reach certain price point before selling it in a big chunk. Then once all people realize all of this, they also start selling until no one want to buy then token anymore and that token will be leave to rot on the crypto exchange.
Abandoned Deadcoin
- This type of coin sometimes once has a proper use case in the real world before it become deadcoin. Any categories of cryptocurrencies can become an abandoned deadcoin. If the developer just leave the development of a certain crypto, it will become useless and domino effect will follow.
- That’s when people will start selling it and leaving it behind. This type of deadcoin has the highest chance to be revive and becoming a useful token because the development process can still be continue by other developer if the current developer allow it.
Some of the information above is obtain via coinopsy.com
How To Spot a Deadcoin (Current and Future Deadcoin)
Current Deadcoin
No Official Website
- Here is some tips for this one. If you want to know the status of certain crypto, just type the crypto name on the Google search bar or other search engine and the website will usually come out first. If it doesn’t have an official website, don’t invest in it.
Developer Abandoned and Delisted the Cryptocurrency
- Developer sometimes has their own website that show you the list of crypto project that there are working on. If they want to abandon a certain crypto project, they usually will first post the announcement first in any social media before delisting it from their list of project.
Low Trading Value
- This one is kinda obvious. Little to no people will invest in a deadcoin hence making it trading value really low.
Future Deadcoin
Weak or Questionable Team Behind it
- We can already expect a certain crypto will become a deadcoin in the future just based on the team behind it. Most of the time, if you saw a certain crypto is being develop by a dubious organization, it’s already show a red flag why to never invest in that crypto.
The Whitepaper is full of Shit
- What I mean with a whitepaper that is full of shit are the language use in that whitepaper in misleading, unrealistic promise with lack of details, and lack of transperancy. So if you saw any sign like this in a crypto project whitepaper, don’t take any risk to invest in it.
Unrealistic Promises and Goal
- Usually the developer will give a lot of promises and goal for a certain project that there a developing on. But that promises and goal sometimes can simply be a lie to attract investor. There are different between being optimistic and blatantly lying.
Conclusion/Other
- The real question here is, does a certain crypto deserve to become a deadcoin. My answer is yes and no. For crypto that don’t have any real utility and value, it deserve to become a deadcoin.
- For crypto that really have a great potential in solving real life problem, it doesn’t deserve to become a deadcoin. Most of the time, a good crypto that become a deadcoin is mostly cause by poor community support, lack of development and lack of funding.
- There a still a lot of crypto out there that are still vulnerable in becoming the next deadcoin and there is not much we can do about it. All we can do as an investor is just wait and see what will happen next.
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