On the site Deadcoins we see today 911 extinct coins which aren’t working anymore, wasn’t working ever really, resulted scam, theft, fraudulent ICO.

On the other site, Coinranking, the surprising amount of 3,971 coins can be found, in 80 pages, 50 in each page. But approximately from the middle of the page 37 all are worth zero. So, I suppose more than the half of the full list is also extinct, it means, about 2100-2200 coins.

Alive, but insignificant

On the very commonly used site Coinmarketcap.com we find 1977 coins and tokens today. From this list, 891 are coins, and 1086 tokens. But only 1373 do have a market capitalization bigger than 100,000 USD. And that doesn’t mean this coin is really 100,000 USD worth; by such a low capitalization (low liquidity) seller’s overweight, selling pressure could push prices easily down.

(If we distinguish coins and tokens, Steem is on place 32, SBD on place 98. Much better than on the full list, with number 38 and 242.)

Small isn’t beautiful

Do we need 891 coins? Surely, not. What are teaching us this “dead coin cemeteries”? I think, a lot.

Maybe small investors should avoid small, intransparent, unknown cryprocurrencies, tokens, which can loose support and die for forever easily. Smaller cryptos don’t have so much developer support, free cash to advance, enough community activity, popularity to survive the “crypto-crisis” we are experiencing today. Maybe big ones get even bigger, small ones even smaller.

The last page on Coinranking

There was incriminations even Bitcoin price could be manipulated. (Teher-story.) Small capitalization is even more dangerous, can be much-much more easily manipulated.

Killing the middlemen

Crypto-companies, ICO-organizers want to revolute industries eliminating the “middlemen”, offering cheap services, with small margins on the markets. But if the margin is narrow, you need a lot of consumers and a lot of transactions to survive or make a really successful business. In some industries you see a dozen or more ICO-s, all ‘d like to make the next Amazon or Facebook. But I suppose, only a couple of them will.

I wrote earlier here that on the list of Coinmarketcap of Autumn of 2013, eight of the top ten coins are practically unknown today. They sunk in the rift of crypto-oblivion, they are somewhere on places between 150 and 1300. Ever heard of Peercoin, Namecoin, Feathercoin, Worldcoin? Times are changing, very fast.

Conclusion

The changes are too quick on this market, don’t put all your money in one and only crypto, and don’t put it all in cryptocurrencies either. If you wish to participate in an ICO, make your research, investigate very extensively. Don’t read only the infos of the issuer, read critics, look for the sceptics, the nay-sayers.

Disclaimer:

I am not a financial advisor and this content in this article is not a financial or investment advice. It is for informative purposes only, or simply to make you think, entertain, increase testosterone and adrenaline level. Consult your advisers before making any decision.

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(Cover photo: Pixabay.com)