What is forgotten coins and why do they happen?
The world of cryptocurrencies is full of opportunities, but some coins, despite their great potential, remain "forgotten". This could be due to competition, declining investor interest, development issues, or lack of exchange support.
Forgotten cryptocurrencies, or ghost coins, are altcoins that were once popular but eventually lost support from the community and investors. The history of cryptocurrencies shows that the main reasons for this are low liquidity, lack of innovation, fierce competition, technical problems or the decision of exchanges to remove them from their platforms. Exchanges like Binance regularly review asset listings and remove coins that do not meet criteria for trading volume, project development, and community activity.
Ghost coins that experience volatility usually experience wild price swings due to low liquidity, lack of an active community, and lack of innovation. When interest in such assets wanes, their volatility can cause prices to plummet as investors attempt to reduce their exposure by selling these coins.
5 examples of forgotten coins
On Binance, the world's largest crypto exchange, there are several coins that have already lost popularity and should be carefully invested in. Binance evaluates assets that have problems with development or liquidity and marks them with special "monitoring" tags, which means the risk of delisting.
Here are five examples of such altcoins:
Bluzelle (BLZ). This coin was aimed at creating a decentralized database for applications. At first, it aroused interest, but could not withstand the competition. The price of the BLZ token can fluctuate significantly, creating instability for users and resource providers in the network. This affects the cost of using the platform and can make it less attractive during periods of high volatility. For those new to blockchain development, integrating with Bluzelle can be difficult, especially for those who do not have sufficient experience in decentralized technologies. This creates a barrier to attracting new users. BLZ is currently on the "watch list" on Binance due to volatility and low activity.
Clover Finance (CLV). This project was supposed to provide cross-chain compatibility and integration of decentralized applications, but could not gain momentum. It is built on Polkadot and heavily depends on its development. Any delays or technical difficulties with Polkadot may directly affect the operation of CLV and its users. He encountered difficulties in attracting users and projects. As with other cryptocurrencies, the price of the CLV token is subject to high volatility. This may deter users who do not want to deal with volatile assets. Because of all these flaws, CLV is also on Binance's watch list.
SelfKey (KEY). This coin is focused on decentralized identity management, but a decline in investor interest led to its listing on Binance's "suspicious" list. For KEY to become mainstream, users and organizations must adopt blockchain technology, which has not yet become a standard in most countries. Limited understanding and trust in blockchain may be a barrier to KEY's growth. As it works with digital identification and storage of personal data, the project often faces regulatory challenges. Legislative changes such as GDPR (personal data protection) in Europe force KEY to adapt or even limit certain services. Despite using blockchain to store identity data, the platform is still subject to security risks, including hacker attacks.
Prosper (PROS). It is a prediction platform that operates on blockchain technology and has faced problems with liquidity and user activity. The concept of cryptocurrency price prediction and risk management requires some understanding of financial markets and blockchain technology. Because PROS allows for betting-like predictions, the platform may come under the regulatory scrutiny of digital markets, especially in countries with strict gambling and financial betting laws. This could lead to platform restrictions in certain jurisdictions, putting PROS at risk of delisting.
VITE. This coin is designed for fast and free transactions, but due to the lack of ecosystem development and low trading volume, it has also been put on Binance's watchlist. VITE positions itself as a high-speed blockchain with zero transaction fees, but there are many competitors in the market with similar characteristics. Compared to other blockchains such as Ethereum or Binance Smart Chain, the VITE ecosystem is less developed. A relatively small number of decentralized applications (DApps) and integrations can hold back the growth of users and crypto projects.
Forgotten, or “dead,” coins abound: it is estimated that more than 1,700 cryptocurrencies are classified as dead. This term usually refers to coins that have no trading activity, have been abandoned by their developers, or have otherwise ceased to function effectively in the market.
How to recognize crypto projects that can become forgotten?
Investors can learn to recognize the signs of risky crypto projects by constantly analyzing the market. Let's consider some of the main criteria that should be paid attention to in order to deepen the knowledge about cryptocurrencies and avoid risks:
Low liquidity and trading volumes. If a cryptocurrency has low trading volumes and not enough interested buyers, this can be a sign of potential problems.
Lack of an active community. If the project does not have a loyal or active community, the chances of its survival are significantly reduced.
Inactive developers or no updates. Cryptocurrencies without regular updates and active development become obsolete and become unsuitable for modern conditions of digital markets.
Low value for the ecosystem. If the project does not offer unique advantages or technologies that would make it popular, investors can quickly lose interest.
Instability or frequent technical problems. Security issues or technical glitches can turn away investors and contribute to a loss of support. Many cryptocurrencies that have become ghost coins originally had innovative ideas but were unable to implement them due to insufficient funding or technical issues. This emphasizes the importance of not only the initial concept, but also its implementation and support in the long term.
Lack of transparency. Insufficient information about the team, project goals or financial statements can raise suspicions. Investors should be careful with crypto projects that do not provide clear information about their activities.
Virtual real estate market. Some ghost cryptocurrencies have emerged in the context of emerging technologies such as virtual real estate and NFTs (non-fungible tokens). For example, projects related to virtual lands that failed to attract investors became forgotten, although their concepts had potential.
Financial history shows that many crypto exchanges like Binance already use their own indicators to identify potentially risky assets. In particular, the "monitoring" and "seed" tags help users understand that these projects are unstable and may be removed if they do not improve their performance.