2018 was a year of big changes and big disappointment for many involved in the cryptosphere. Although the year started off on the wrong foot, it seemed that so many still had faith that everything would be ok – that the waning marketcap of Bitcoin and so many other cryptocurrencies was just a temporary dip, just a low moment in Bitcoin’s journey to $50,000; no, $100,000; no, $1 million.
Not so. The markets sit lower than they have been in over a year, with little sign of recovery anytime soon. While major coins like Bitcoin and Ethereum are still widely used (in spite of their decline), there are hundreds of “altcoins” that have all but “died” this year–or disappeared completely.
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The Death of Cryptocoins: An Autopsy
How can a coin die? Some coins never really “lived” in the first place–they belonged to projects that were controlled by individuals either too negligent or too ignorant to successfully keep their platforms running. Money was squandered and projects so poorly managed that they were run into the ground. In turn, this caused investors to abandon ship, and price valuation to flatline.
Are #altcoins dead?
— Crypto Boss (@LegendOfCrypto) October 12, 2017
The charges filed against the company “Titanium President Michael Alan Stollery, a/k/a Michael Stollaire, a self-described ‘blockchain evangelist,’ lied about business relationships with the Federal Reserve and dozens of well-known firms, including PayPal, Verizon, Boeing, and The Walt Disney Company. The complaint alleges that Titanium’s website contained fabricated testimonials from corporate customers and that Stollaire publicly – and fraudulently –claimed to have relationships with numerous corporate clients.”
The Titanium ICO was halted before it was finished.
#4: Hamster Marketplace
In Hamster’s case, it’s somewhat unclear whether this was an outright exit scam or a simple disintegration of the team that was responsible for its creation.
What was Hamster Marketplace? “Soon Hamster Marketplace will open the niche electronics market to thousands of vendors around the world who cannot currently afford to work with incumbent marketplaces,” reads a Medium post apparently written by the platform itself. “It will offer hundreds of thousands of goods to millions of buyers without any middleman’s negative influences, such as price markup and low quality clone products.”
And for a while, things seemed to be going well. “Team members, bounty hunters, and investors were to be paid in HMT token for the work and the rest would go to marketing and gaining users,” reads a report by CryptoInsider. “Research went into how much it would cost per user and merchant acquisition. Without much more research, the plan sounded solid and many were excited for this new marketplace to come to existence. The website even had a prototype of the marketplace,”
“Unfortunately, the team focused more on the ICO than the building of the product itself,” the report continues. The prototype marketplace never came to fruition, and the project appears to have been abandoned.
This is a coin that hasn’t quite kicked the bucket yet but is well on its way. Coinopsy, a site similar to DeadCoins.com, lists LottoCoin as “struggling.”
And so we see a coin that’s near the end of its life–”LottoCoin was founded in 2013 and is not trading on any main exchanges. Was added to the dead coins list due to being a struggling Coin with no volume. Founder/CEO is Unknown,” Coinopsy’s report on the coin reads.
At the time of writing, a single LottoCoin was worth $0.000114. Some last signs of life have appeared in its charts.
“Meanwhile companies such as Block.One, Coinbase and Ripple feel more centralized, than decentralized and more just like regular businesses who are part of a movement to usurp the space,” wrote Blockchain Mark Consultant Michael K. Spencer in a Medium Post. “The blockchain movement is mostly being spear-headed by young software developers who believe that the world can do better. There is a lot of pretending going and decentralization propaganda.”
“Decentralization propaganda,” of course, refers to the popularization and subsequent loss of meaning of the word “decentralized.” The term has become so trendy and overused that it no longer offers any kind of indication as to how decentralized something actually is.
With all of the malicious and deceptive activity that has taken place within the crypto space, this is one of the more subtle crimes–but insidious nonetheless. When words lose their meaning, movements lose their meaning; if cryptocurrency networks aren’t truly decentralized, then what’s the purpose in the first place?
“If you are a private business and pretend to be something you are not, is that not the worst fraud?”, Spencer wrote. Is it not?