Today, cryptocurrency is the world’s second-largest digital currency by market cap, with $400 billion worth of it being traded daily. However, many cryptocurrency projects have experienced significant setbacks in the past that have left their respective prices in free fall. That’s because cryptocurrency is an unregulated industry and its participants are largely unregulated as well. As a result, there are several scams, hacks, and frauds that have occurred within the cryptocurrency space over the last few years.
5 Worst Cryptocurrency Failures of All Time Could Have Been Prevented
In this article, we take you through some of the worst failures ever associated with Cryptocurrencies and outline what could have been done to prevent them from happening again.
- Bitcoin: The First Major Failed Investment!
Bitcoin was the first major failed investment in cryptocurrency. In early 2009, a group of people decided to create a new digital currency that would work differently than traditional currencies like dollars and euros. Bitcoin was designed to be more secure and efficient than other digital currencies, and it did just that! However, as time went on, Bitcoin began to lose value against other currencies. In fact, by the end of 2013, Bitcoin had lost more than half its value!
Amazingly, today it’s the most traded Cryptocurrency in the market. It’s available on Crypto Genius, Bitcoin Code, BitQT, and many other online trading exchanges.
- Ethereum: The Next Biggest Failed Investment!
Ethereum is a cryptocurrency that was created in 2015 and revolves around the idea of decentralized applications (DApps). DApps allow users to create and run smart contracts on a blockchain network.
But, as Ethereum has been struggling to keep up with its competition, its value has plummeted. For example, according to CoinMarketCap, Ethereum’s market cap was only $8 million at the end of December 2018. This means that if Ethereum had fallen by just 10 percent instead of 100 percent, its value would be worth over $160 million!
- Ripple: The Final Straw That Broke the Camel’s Back
In February of 2018, Ripple was hit with a $500 million worth of cryptocurrency hack. As a result, many investors panicked and pulled their money from the company. Ripple’s stock price plummeted and the company was forced to file for Chapter 11 bankruptcy. This event left the cryptocurrency industry in disarray and created a lot of questions about how this type of attack could happen. Ripple is one of the most well-known and popular Cryptocurrencies and it had a lot to lose if this attack had happened to another company. If you’re looking to invest in Cryptocurrencies, it’s important to be aware of the risks that come with them.
- StarsFillTheSky: The Bubbliest Collapse in Crypto History
One of the earliest and most publicized cryptocurrency bubbles was that of StarsFillTheSky, which occurred in 2017. In that year, cryptocurrency prices were soaring ahead of schedule and people were buying large quantities of the new digital currency. However, shortly after the market opened, prices began to fall as concerns about fraud and potential scams arose. By the end of the day, only a small number of people had bought into the scheme, and the entire market value had plummeted.
Despite this fiasco, StarsFillTheSky remains one of the most well-known and well-known cryptocurrency schemes to date. It’s still a popular topic for discussion on social media and it’s still being used today to trade Cryptocurrencies.
- Cardano: The Most Devastating Conclusion to an Unfinished Project
In March of this year, Cardano announced that their project was in danger of being canceled. At the time, the project had been in development for over two years and was estimated to be worth $2 billion. The reason behind the project’s cancellation was a lack of progress on Cardano’s part – they were still not able to come up with a working product.
Cardano is a blockchain-based platform that aims to provide a more secure and efficient way of exchanging money. It was announced in February of this year that the executive team of Cardano would be disbanding, effective from the end of April. This left the future of Cardano in doubt.
It’s not only the cancellation of Cardano that is worrisome; it’s also the fact that Cardano has not released any official documentation regarding their project. This leaves it difficult for users to understand what exactly they are working on and how it relates to other projects that are also in development.
Conclusion
The mistakes made in cryptocurrency have the potential to have a devastating impact on businesses, but thankfully, there are ways to prevent these disasters from happening in the future. By understanding the factors that led to these failures and taking the necessary steps to prevent them from happening again, businesses can confidently continue investing in Cryptocurrencies and enjoy the benefits that come with them.
Read More: How to Spot Wrong Cryptocurrency Answer
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