The reality of investing in cryptocurrencies is this: with all investments comes a certain degree of risk, but you can take more control of that risk level by investing in well performing cryptos.
Now, with more than 10,000 distinct cryptocurrencies currently on the market, weeding out the good investment opportunities from the bad can be a tedious task, which is why Average Cash wants to help.
Our team has been following the trends of different cryptocurrencies as eagerly as you have. But, instead of focusing on the well performing cryptos, we have been keeping a close eye on the ones that have totally bombed.
Today, we are going to bring your attention to the worst cryptocurrency failures on today’s crypto market.
We will talk about what made these investment opportunities turn into crypto failures, which worst cryptocurrencies you need to avoid at all costs, and the red flags that point to risky investment ventures.
Do you want to protect your money by steering clear of the worst cryptocurrency options? Keep reading to know the names of crypto failures that can do more harm than good to your earnings.
The 5 Worst Cryptocurrencies to Never Invest In
There are a wide variety of factors at play with what makes the worst cryptocurrency tokens truly the worst, including frauds, scams, bad publicity, failed business plans, and poor security.
If you are familiar with the cryptocurrencies that are listed below, it is because they all have one thing in common: an epic rise to popularity followed by an epic crash.
Let’s relive those worst cryptocurrency stories together now so that your money never has to:
1. BitConnect (BCC)
A famous name in the world of failed cryptocurrencies (perhaps due to the legendary Carlos Matos BitConnect meme), BitConnect began as an open source cryptocurrency in 2016.
The concept was simple and enticing: users could load their Bitcoin to BitConnect Coin, and benefit from locking in the present value of their coin while earning daily interest on it. .
Aside from the growing monetary promises, BitConnect also operated using a multi-level referral system, offering users a referral code to send to their friends and ultimately increase BitConnect usership
BitConnect’s story does not begin as a worst cryptocurrency tale like you might expect; the company became one of the top crypto tokens before everything came crashing down.
Investors begin to question BitConnect’s business model, pointing to its Ponzi scheme-like system that promised users big investment returns but greatly lacked transparency and legitimacy. After a series of legal issues and government cease and desists, BitConnect shut down in 2018.
2. GetGems (GEMZ)
The GetGems crypto business model seems innocent enough: Entering the crypto market in 2014, this worst cryptocurrency works as a social messaging app.
GetGems lets users send and accept Bitcoin transfers from their social network.
Again, with GetGems we also see a business plan that operates on users inviting their friends to register for the app to drive up traffic.
Initially, GetGems raised a large sum of money through crowdfunding and investors to get GetGems up and running, 1 million US dollars to be exact.
But, a big flush of cash at the ground level does not guarantee a well performing crypto.
GetGem is on this worst cryptocurrency list because after this initial launch, the token’s progress has really stalled.
GetGem did not end up delivering on their original objectives, and trading of this coin stopped after it peaked in 2017.
3. Dogecoin (DOGE)
The widespread infamy of Dogecoin stands as an important investment lesson for us all: memes don’t pay.
Really, this worst cryptocurrency should have been brought into question as soon as it launched.
Founders Billy Markus and Jackson Palmer created Dogecoin as a satirical token to poke fun at the spectacle of the current cryptocurrency market and have since continued to question the ethics of crypto trends.
Dogecoin took off with initial success. Pumped up by the words of Elon Musk, Tik Tok trends, and pyramid scheme-like investment tactics, Dogecoin peaked in market capitalization in May 2021 at an estimated value of $85 billion USD.
By tracking Dogecoin’s rollercoaster market trends, the bottom line remains that Dogecoin is a high risk investment. This coin is subject to volatile pump and dump tactics that inflate Dogecoin’s value, making it appear more successful than it actually is.
4. Đào Ethereum (DAO)
The Đào Ethereum entered the cryptocurrency scene with one of largest crowdfunding campaigns ever.
Investors were eager to back Đào Ethereum as a cryptocurrency that provided revolutionary changes to the market, including a decentralized business model with stateless funds and a transparent, open source code.
Despite its initial hype, Đào Ethereum soon trended towards becoming a worst cryptocurrency after a series of whistleblowers and cyberattacks pointed to the project’s weak security system.
On top of that, investors were skeptical about the lack of precedent in dealings with Đào Ethereum’s contracts and investment terms.
Very soon after its launch and subsequent criticism, the Đào Ethereum was delisted from major crypto exchange platforms.
In the end, the Đào Ethereum was a short lived cryptocurrency that attempted to make big changes to what economic organization could look like, but did not work out the practicalities needed to make these changes feasible.
5. Nano HealthCare Token (NHCT)
The fall of the Nano Healthcare Token is a reminder that crypto failures are not a phenomenon of the past.
There remains a very real risk that even new cryptocurrencies can become the worst cryptocurrencies if crypto projects don’t go as planned.
The Nano HealthCare Token was founded in 2018 by creator Manish Ranjan.
This failed cryptocurrency had good intentions: the Nano Healthcare Token launch operated on the idea that blockchain technology could be used to improve the organization, efficiency, and security of healthcare data systems worldwide by creating one global, decentralized database.
But, as we see in the trends of these worst cryptocurrency options, a great idea does not guarantee a well performing cryptocurrency or high return investment.
Unfortunately for Nano Healthcare Token, this cryptocurrency did not reach a high level of success, and is now no longer trading.
Red Flags of the Worst Cryptocurrency Investments
There are lessons to be learned here from the stories of these worst cryptocurrency tokens. Here are the main takeaways to help you make smart decisions when investing in the crypto market:
Investigate the business plan: What model does the cryptocurrency plan follow to expand their platform? Or, do they even have a transparent plan for potential investors?
It is important to read up on how the cryptocurrency plans to mine and secure their coins so that you can get a better sense of the business and whether or not it can be trusted.
Who are the founders? A quick search of the cryptocurrency’s founders can help you discover if they have been involved in past business schemes that feature scams or fraud.
How did you hear about it? Cryptocurrencies that spread across the internet through popular memes or social media trends will likely not be around long enough for you to see real returns on your investments.
Online Presence: If a cryptocurrency’s website or social media pages appear to be inactive, that can be a big indicator to you that this crypto is on the decline.
Check the Exchanges: While this is not a sure way of knowing if a cryptocurrency is well performing, the top exchange platforms do investigate tokens before adding them to their market.
If the token is listed on a top exchange site, you can at least know that the cryptocurrency is not a totally fringe or obscure investment.
When you are investing into a cryptocurrency, you want to feel confident that you are aware and comfortable with the risk involved in your investment.
Since that level of risk differs depending on the currency, the worst cryptocurrency failures in history can give us a baseline of what a bad investment opportunity looks like, and how to avoid it.
Look out for red flags like too good to be true promises, over-hyped popularity, pyramid scheme models, and pump and dump scams that make the worst cryptocurrency investments become hidden traps from consumers to fall into.