In the area of cryptocurrency, countless new projects pop up daily. While a lot of them look strong, and even experience success, others end up going nowhere. Actually, a lot of these jobs end up being outright failures.
The worst of those failures begin with promising futures, generating a lot of hype and raising large quantities of starting funds. Thenthey flop. They quietly fade in the sea of failed crypto projects, or crash in a blaze of people drama.
The next list indicates the biggest of those failures, the most hyped jobs that could not deliver, in addition to ones who blew up due to internal and community conflict.
TOP 5 BIGGEST FAILURES IN CRYPTOCURRENCY HISTORY
SpaceBIT is among the toughest cryptocurrency projects to date. Branding themselves as”the first decentralized space company,” SpaceBIT declared its thought into the world in late 2014.
The company wanted to launch several”nano-satellites” into orbit — yes, space — to supply a globally-accessible blockchain. This blockchain will be utilized for both bitcoin cold storage and also assisting unbanked regions access financial services.
The press went crazy with this announcement — Bitcoinist comprised . Throughout late 2014 and ancient 2015, the Bitcoin community followed SpaceBIT with great excitement, awaiting updates concerning the project.
At that same time period, the group behind SpaceBIT ran the seminar circuit, doing many demonstrations and construction hype much further.
However, despite all the hype from the community, and all the talk from the group, SpaceBIT never revealed some other sort of model or proof-of-concept. Actually, after the first few months of 2015, we stopped hearing about SpaceBIT completely.
What was the reason for this disappearance? In a nutshell, the team behind SpaceBIT started a new blockchain firm, BlockVerify. A source near the original project told me that all efforts are currently focused on this new project, which SpaceBIT has been totally shelved since March 2015.
GetGems, initially branded as”Gems,” is a social networking platform which uses cryptocurrency to cover members that view advertisements within the program. GetGems was so proud of their thought, that in 2014, they stated it’d interrupt social websites as we knew it.
But, those claims appear to have fallen flat. At the end of 2014, the business reported a disappointing crowdsale, increasing only $111,000 USD. Such an amount is quite small compared to other cryptocurrency projects with similar promises of disruption, which have raised thousands of dollars in funding.
This project is still up and functioning, but adoption amounts look underwhelming. 90-day Google Play ranking statistics from SimilarWeb reveal that the program is pretty popular in the states where it’s accessible. At press time, the app ranks 63rd in Uzbekistan.
In 2014, the community became known for using DOGE in charitable acts.
Most notably, the community raised enough DOGE to send the Jamaican bobsled team to the 2014 Winter Olympics.
The currency even survived and thrived through two hard forks.
Since then, Dogecoin has not been able to return to its former glory.
After Green shut down the exchange and disappeared with its funds, DOGE crashed, and the community all but disbanded.
The white paper for the coin seemed promising, calling for new variations of blockchain technology that would produce a new breed of cryptocurrency.
However, Garza quickly converted PayCoin into a generic altcoin clone so he could push it onto the market faster. Apparently, scammers aren’t keen on waiting to steal your money.
PayCoin had a huge launch, becoming one of the largest cryptocurrencies in the world by market capitalization. But the house of cards began falling. With GAW continually failing to follow through on its promises — one of them being the infamous $20 PayCoin floor — people began losing faith in the currency.
With GAW totally shutting down in 2015, federal authorities launching an investigation of the company, and Garza fleeing the US, PayCoin hit rock bottom.
The currency’s dedicated community attempted to pick up the pieces, hoping to redesign the coin to meet its white paper specifications. These efforts have so far been fruitless, the developers unable to overcome PayCoin’s tarnished reputation.
Now we arrive at the largest failure in cryptocurrency history: Ethereum’s DAO.
The announcement of the DAO in April 2016 sent waves throughout the cryptocurrency community. The Decentralized Autonomous Organization — crypto-anarchists and Bitcoinists dreamed about it for years, and Ethereum finally made it reality.
People were so excited about it that they purchased DAO tokens by the truckload. The DAO token sale quickly made this project the largest crowdfund in history, bringing in over $168 million USD. This success translated into market activity once the coin got listed on exchanges. At its peak, according to CoinGecko, the DAO token reached a price of 0.19 USD.
The glory didn’t last long, though.
On June 18, an attacker exploited a vulnerability in the DAO smart contract, resulting in a loss exceeding $50 million USD. Once news of the attack circulated, traders dumped the DAO token, sending its price spiraling downwards.
Following the attack, Ethereum Foundation developers proposed a hard fork of the Ethereum blockchain that would roll back the attack and return the stolen funds to their owners. This proposal sparked outrage throughout the cryptocurrency community, with detractors arguing that such a move went against the central point of blockchain technology — immutability
The fork went through, but did not achieve consensus, which created a separate Ethereum blockchain that operated independently of the forked chain. Consequently, Ethereum Classic, a token operating on the”old” blockchain, arose. Since its birth, Ethereum Classic has competed with the”brand new” Ethereum for consensus. So far, neither has won.
The drama surrounding the fork tarnished the standing of this Ethereum Foundation, Vitalik Buterin in particular. As such, Ethereum has lost much of the esteem and prominence it once enjoyed, despite being among the largest cryptocurrencies by market capitalization.
Whether this trend continues, we may observe the whole Ethereum job on the upcoming top five failures list.
What do you think would be the worst cryptocurrency failures?