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What Are Dead Coins ?

Im sharing some part of this article i found on coinmarketcap.com to spread awareness since i started to see lots of people asking about weird coins instead of researching.I dont want to scare the newbies but hear me out.

Dead coins are digital assets of projects that have been abandoned, turned out to be scams, have low liquidity or have insufficient funding, among many other reasons.

Lets take a look at the historical snapshot of the 2017 market

[https://coinmarketcap.com/historical/20171217/](https://coinmarketcap.com/historical/20171217/)

There are lots of coins in the top 50 you havent seen yet right ? Lets take look at one of those.

BitConnect

A perfect example of ponzi scheme. As you can see in the snapshot Bcc was the 18th coin with 471$ price in 2017. BCC was the biggest Ponzi scheme in the cryptocurrency industry. It provided a platform to trade Bitcoin for its native currency and receive high yields.

A bot programmatically calculated yields due — however, the calculations raised eyebrows among investors. Its woes started towards the end of 2017 when UK financial regulators raised concerns about its legitimacy.

BitConnect enjoyed early success thanks to a big marketing budget and the rise of Bitcoin, however, In early 2018, regulators in Texas labeled it a Ponzi scheme. Shortly after, it shut down, causing the price of BCC to crash by 9% 

[https://coinmarketcap.com/tr/currencies/bitconnect/](https://coinmarketcap.com/tr/currencies/bitconnect/) from 471$ a coin to 0

How to Avoid Projects That Might Become Dead Coins

In the vast crypto ecosystem, the possibility of having a dead coin in your portfolio is very likely — but don’t ask “is crypto dead?” too soon — due diligence when investing in altcoins can provide critical insights into trustworthy projects.

For example, scam dead coins in crypto can be avoided by evaluating their ROI promises. Most of them promise “guaranteed returns” despite cryptos being highly volatile and speculative.

How to spot a dead coin walking? Observing a project’s presence and activity on social media platforms can shine a light on future dead coins as well. In addition, viable coins are listed on reputable exchanges such as Binance, which have noticeably high liquidity.

Long story short dont invest at every coin you see. Do some research about it .Be aware of the fact that not every coin is gonna make it .Some will turn into dust.

I HIGHLY RECCOMEND YOU TO GO READ FULL ARTICLE ON HERE:

[https://coinmarketcap.com/alexandria/article/what-are-dead-coins#toc-what-are-dead-coins-](https://coinmarketcap.com/alexandria/article/what-are-dead-coins#toc-what-are-dead-coins-)

And also go take look at the coins in the snapshots from 2016-2018 .Look how some coins were back then and how are they doing right now.

[https://coinmarketcap.com/historical/20161225/](https://coinmarketcap.com/historical/20161225/)

[https://coinmarketcap.com/historical/20171217/](https://coinmarketcap.com/historical/20171217/)

[https://coinmarketcap.com/historical/20180107/](https://coinmarketcap.com/historical/20180107/)



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