The Worst 5 Cryptocurrencies Of The 2010s
These cryptocurrencies reached the top but their fall was hard.
The decade of the 2010’s will have been phenomenal for Bitcoin and the cryptocurrency market. Created by Satoshi Nakamoto in early 2009, Bitcoin has experienced phenomenal growth and now has a market capitalization of $130 billion.
Bitcoin has been the best performing asset of the decade. Early adopters who believed in Bitcoin in 2010 and remained loyal were able to turn $1 invested into $90,000. These numbers may seem unreal, but they are real.
Buoyed by the euphoria surrounding Bitcoin, many other cryptocurrencies were launched and enjoyed significant success. These include Ethereum, Ripple, Bitcoin Cash, Litecoin and Stellar.
Nevertheless, these successes cannot erase the disastrous failures of some cryptocurrency projects. In what follows, I propose to come back to 5 cryptocurrencies that I consider as the greatest failures of the 2010s.
These 5 Cryptocurrencies Were All In The Top 10
I consider the 5 cryptocurrencies that I am going to present to you as the biggest failures of the decade because they all made it into the Top 10 of the most capitalized cryptocurrencies before collapsing irremediably.
The reasons are various but the history of these 5 cryptocurrencies is there to remind investors that they must act with caution.
Since the sharp falls of these cryptocurrencies, the market has matured. More and more people have realized that everything that seemed too good to be true in the cryptocurrency world was really just a scam.
More distrust has grown and investors are much better at studying cryptocurrency projects fundamentals before investing their money in them.
This mistrust is an excellent thing that will have to be combined with a great deal of lucidity in the coming months with a strong bull market expected in 2020 for Bitcoin and the cryptocurrency market.
In January 2015, PayCoin was the 4th most capitalized cryptocurrency with a valuation of 39.4 million dollars and a price of $3.20. Given that PayCoin was just a big scam, reaching this ranking can be considered as an incredible achievement. You must remember that PayCoin was launched with the largest number of pre-milled coins in history: 12 million out of the 12.5 million possible in circulation at the time of its launch.
PayCoin has generated enough money and attention for the IRS (Internal Revenue Service) and the SEC (Securities and Exchange Commission) to take an interest in the subject. Finally, the CEO of PayCoin pleaded guilty to fraud. He was sentenced to 21 months in prison for what was nothing more than a Ponzi scheme.
Despite these facts, PayCoin continues to be listed in the cryptocurrency ranking with a 1659th place for a price of $0.002739. The volume of trade remains negligible.
In January 2014, MegaCoin was the 10th most capitalized cryptocurrencies with a market cap of $18.1 million. Nearly 18 million coins were then in circulation with a price slightly above $0.80 ($0.83 exactly). Technically, MegaCoin is a clone of Litecoin which is itself based on Bitcoin source code. The same Litecoin that argues to be a Bitcoin without its flaws.
MegaCoin was pre-mined by its developer the week before its launch. Even before investors had a chance to buy or mine the area, nearly 6 million coins had already been accumulated by a small group of a few people.
At the moment, MegaCoin is in 1561st place in the top of cryptocurrencies with a price of $0.001375. MegaCoin owes its survival only to a community of fanatics who continue to support it.
These fanatics even believed at the time that MegaCoin would one day surpass Bitcoin. It sounds unbelievable, but they believed it to be true. Under these conditions, it is easy to imagine their current distress given MegaCoin’s situation.
AuroraCoin was intended to create a national cryptocurrency for Iceland, which was just beginning to recover from a bank collapse some time earlier. As such, AuroraCoin was an attempt to implement a good idea.
Nevertheless, the good idea behind AuroraCoin was a failure because of the difficulties encountered in exchanging this coin for fiat currencies.
At its peak in March 2014, AuroraCoin even reached the podium of the top of the cryptocurrencies with a 3rd place for a market cap of $318 million.
One AuroraCoin was then worth nearly $30. Today, AuroraCoin stands at 973rd place in the top of cryptocurencies with a price of $0.032865. Among the 5 cryptocurrencies that I present to you in this story, AuroraCoin is the only one that still has the potential to rise again one day.
AuroraCoin has still a potential to rise up because the Icelandic government has just created a legal framework for cryptocurrency exchanges. Perhaps all is not yet lost for AuroraCoin.
The BANX cryptocurrency had the particularity of allowing the exchange of these BANX coins only on its banx.io platform. This specificity made it possible to maintain a floor price for a certain period of time, which prevented its value from falling as it should have done.
On July 12, 2015, BANX occupied the 10th place in the top of the most capitalized cryptocurrencies. BANX then had a market capitalization of $13.1 million divided into 6 million coins in circulation at a price of $2.01.
This supposedly official price was nothing but an illusion that would make the unfortunate ones who had made the mistake of believing in BANX lose a lot of money. I mention a supposed official price because BANX was not publicly tradable on cryptocurrency trading platforms.
It finally took another 2 more years for this scam to end in 2017 after thousands of investors had lost considerable money.
Quark does not represent as great a failure as the first four cryptocurrencies I just presented. Nevertheless, as of January 2014, Quark was the 9th most capitalized cryptocurrency with an overall market capitalization of $22.5 million. The number of coins in circulation was 224 million with an exchange value of $0.09.
Quark has done nothing but disappoint since then and cryptocurrency is now 769th in the rankings with a price of $0.004979.
Although it hardly seems possible, Quark fans continue to believe in a return to the forefront of their favourite cryptocurrency.
Internal community problems, a certain lack of transparency in the Quark project and several development flaws that have never been fixed explain in large part why Quark has been such a failure since 2014.
The fall of Quark will surely have been a blessing in disguise in the history of cryptocurrencies as it forced the following cryptocurrency projects to become more transparent. The transparency efforts made since then by the new cryptocurrency projects have improved the entire ecosystem.
The cryptocurrencies I have just presented to you are there to remind everyone that the cryptocurrency market can be ruthless. As an investor, you should therefore always carefully select the cryptocurrencies you buy, otherwise you will lose a lot of money.
Finally, you must never forget to always remain wary and keep in mind this fundamental truth in the cryptocurrency industry:
If it looks like a scam, it is a scam.