According to the listing of CoinMarketCap, there are more than 19,000 cryptocurrency variants trading on the open market. It is not a surprise that a considerable percentage of these cryptocurrencies are bound to fail as well. The number of dead tokens that are no longer operational or were unable to remain active in trade has reached 1,700 thus far.
99Bitcoins data analytics service recently verified the aforementioned quantity of dead tokens. The service also shared some of the most prominent dead coin projects like Vegascoin, BitConnect, and Storeum. It is worth noting that in very rare cases, some of these dead coins come back to life if they can manage to culminate enough interest.
According to 99Bitcoin analysis, the majority of dead coins are not failed cryptocurrency trading models. Most dead coins are scam coins that were trying to run Ponzi schemes and thug investors by rug pull and pump/dump deals. BitConnect is a good example of such a financial scam; the token managed to raise $2 billion from investors before crashing down to zero.
Scams in Crypto Industry
The BitConnect investors were able to succeed because they invested considerable money into the marketing. Another such example is SafeMoon. Ben Philips, who worked as the former marketing chief at SafeMoon, was recently convicted in a $12 million pump and dump scheme. Investors are getting fooled by the name of new tokens like the Squid Game token that pumped for six months before dropping to zero eventually.
The interesting thing about the SQUID token is that the investors did not conduct enough research before putting their money into the mix. The SQUID token took advantage of the popularity of a South Korean series called Squid Games. However, the scammers behind the token had no connection with the studios or the production house that ran the series.
CoinMarketCap describes SQUID tokens under the ostensive custody of the investors that are left behind after getting the rug pulled by the investors. The SQUID scammers were able to get away with $2.8 billion from the reluctant cryptocurrency investors in 2021.