Understanding Dead Coin || 10% payout to tron-fan-club

Introduction

There are so many things to explore and discover as a crypto enthusiast,the more you look deep into this subject,you discover more. I will like to start by asking you if a coin can go into extinction or can be considered dead. What is your answer? Well from research,I found out a coin can be dead even though it's built on a blockchain. Let see how or what makes a coin to be addressed as a dead coin.

What is a dead coin

source

A dead coin can be defined as any crypto or digital currency which doesn't exist anymore or has gone into extinction due to some reason which we will get to know as we follow the lecture.
A coin can die as a result of failed ICO project, inability to mobilize fund for the project or could even be a scam in the first place. When a coin is built on a fraudulent foundation,it life's span is usually short because the aim of that coin is to attract investors and then run away with the money rendering the project useless and the coin worthless which then makes the coin inactive. There are so many failed crypto project out there,many of which I will be showing us later in this post.

A coin can also be considered dead if the coin trades less than a thousand dollar ($1000) in the last 3 months. In addition a cryptocurrency whose website is dormant or inactive is also considered dead because it is of no use since investors cannot reach out to get information or support from the website or developers. It is also interesting to note that we have over 1600 (and still counting) dead project out there.

How to identify a dead coin

Since we are all investors and traders in this space,it's important to know how to identify a dead coin or a coin that is at the verge of dying . This will save you from investing in wrong projects. Let's explore the red flags below.

• Absence of an official website

Every crypto project is suppose to have a valid website. If by any means you discover there is no website for the project or the official website being used is no longer active then you should know that the project is dead or about to die.

• Abandoned or delisted project

Developers can decide to abandoned a project or even delist it. It is a clear warning sign that they are no longer responsible for the project any longer. That is the reason why it is good to check out the credibility of the people behind any project before going for it. Check if they have been successful with other project and do a thorough research.

• Multiple and Consistent coin’s wallet issues

This is also a clear sign. The hand writing on the wall is clearly written if you're very smart. When you start discovering that the wallet designed for a particular coin start having unnecessary issue consistently,you have to do the needful. It shows the developers are up to something nasty in most cases and in no time you will discover that the system will stop functioning and thereby becomes inactive.

Types of Dead Coin

We have different types of dead coin and I will be explaining them in this session. Let check them out below.

• Joke Dead coin

This type of dead coin is called so as a result of foundation on which the coin was initially created. Joke coin are normally created with no clear purpose. It's is always created to catch fun. Many of the coin in this category have no use case so they have no cause to exist in the first place and this result into it death on the long run. Many meme token are classified under this.

• Abandoned Dead Coins

Just as the name implies,the coin became dead because it was abandoned by the developers for one reason or the other ranging from finance,rejection from exchanges,low trading volume and the likes. The developers abandoned it because they felt they couldn't cope with all it takes to keep the project running. This type of dead coin is said to be the very common among dead coin categories.

• Scam Dead Coins

Many people have been victim of this type of dead coin especially in the era of ICO boom in 2017. Many scam project took advantage of that period to push out their malicious coin even when they knew that they were not out to promote the good course of making crypto an household name in the financial space. They die what we call pump and dump a d then disappear with people's money. A good example is the bitconnect token.Like I said earlier,you will do yourself alot of good to study a project well before venturing into it. Always try to k ow the team behind a project. Below are some project that are already dead

source

Conclusion

We have learnt that a coin can go into extinction and thereby called dead.I have also been able to tell the different types and possible cause of the death of coin. I want to believe you learnt so much from this write up. Don't also forget to DYOR for more insightful discoveries.

Regards:
@lhorgic♥️