In the world of cryptocurrency, countless new jobs pop up daily. Even though a lot of them look powerful, and even expertise success, many others end up going nowhere. In fact, a lot of these projects end up being blatant failures.
The worst of those failures start out with promising stocks, generating a great deal of hype and raising large amounts of starting capital. Then, they flop. They either quietly fade in the sea of unsuccessful crypto jobs, or crash spectacularly in a blaze of public play.
The following list indicates the biggest of these failures, the most hyped projects that couldn’t deliver, as well as ones who blew up due to inner and community battle.
TOP 5 BIGGEST FAILURES IN CRYPTOCURRENCY HISTORY
SpaceBIT is one of the most ambitious cryptocurrency projects up to now. Branding themselves as”the first decentralized space company,” SpaceBIT announced its idea into the entire world in late 2014.
The business wanted to establish several”nano-satellites” into orbit — yes, space — to provide a globally-accessible blockchain. This blockchain will be used for both bitcoin cold storage and also assisting unbanked regions access financial services.
The press went wild with this statement — Bitcoinist comprised . During late 2014 and ancient 2015, the Bitcoin community followed SpaceBIT with great enthusiasm, waiting for updates about the job.
In that exact same time interval, the team behind SpaceBIT ran the seminar circuit, doing many presentations and construction hype even farther.
However, despite all of the hype from the community, and all of the talk from the team, SpaceBIT never revealed any kind of model or proof-of-concept. In reality, after the first couple months of 2015, we stopped hearing about SpaceBIT completely.
What was the main reason for this disappearance? In a nutshell, the group behind SpaceBIT started a new blockchain company, BlockVerify. A source near the initial project told me that all efforts are focused on this new project, which SpaceBIT was totally shelved since March 2015.
GetGems, initially branded as”Gems,” is a social networking platform that uses cryptocurrency to pay members that see ads within the program. GetGems was so pleased with their idea, that in 2014, they said it would disrupt social media as we understood it.
But, those claims seem to have fallen flat. In the end of 2014, the company reported a disappointing crowdsale, increasing just $111,000 USD. Such an amount is rather small compared to other cryptocurrency projects with similar claims of disruption, which have raised thousands of dollars in funding.
This job is still up and functioning, but adoption numbers look underwhelming. 90-day Google Play ranking data from SimilarWeb reveal that the program is really popular in the states where it’s accessible. At press time, the app ranks 63rd in Uzbekistan.
Dogecoin started out as a joke, but quickly became a very serious cryptocurrency backed by a passionate community. 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.
But, it all got ruined when Dogecoin exchange Moolah went down, with founder Alex Green running off with everyone’s money.
Since then, Dogecoin has not been able to return to its former glory.
PayCoin was launched in fall 2014 by the notorious Josh Garza and GAW miners. 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”new” Ethereum for consensus. So far, neither has won.
The drama surrounding the fork tarnished the standing of the Ethereum Foundation, Vitalik Buterin particularly. Therefore, Ethereum has dropped a lot of the respect and prominence it once enjoyed, despite being one of the largest cryptocurrencies by market capitalization.
If this tendency continues, we might see the entire Ethereum job on the upcoming top five failures listing.