How the crypto bubble bursting is like Apple in 1997, but even better. Remember back in 1997 when Apple came within a frog’s hair of going bankrupt and Facebook first came online? And then Bill Gates came to the rescue of Apple with a huge wad of money ( let’s say $150 million) to keep them alive? And Steve Jobs got booed when he announced it from the stage as his first appearance as Apple CEO? The “Think Different” campaign put Apple on the map and we can see what happened here in February 2022.
Well, crypto is not much different, although Microsoft is not bailing out any altcoins… yet. The big difference? A Zombie is still a Zombie – dead, but with a little twitching still.
The Crypto bubble bursting was meant to end thousands of currencies that sprung out after Bitcoin’s dramatic popularity and rise. But guess which digital tokens are beating the original as it grows more than 40% to $10,000 in 2020 — currencies like Einsteinium and Kick, which were long ago written off. Over the years, the value of these coins and dozens more have more than doubled. These so-called alternatives (or alt) coins are surviving and even thriving because of the hundreds of exchanges worldwide that are providing investors attractive conditions to trade and profit from the renewed interest in Crypto risk-taking.
Zombie Cryptos or coins are digital tokens that have been “resurrected” after previously being considered dead. The great Cryptocurrency crash of 2018 was meant to be the end for many alternative coins hoping to replicate Bitcoin’s rapid rise, but that was not the case.
The truth is that most Cryptos do not vanish in a moment. Instead, the decrease is generally slow and takes years rather than days to occur. A coin’s price and trading volume may have decreased, indicating that it is in decline. Some coins go into a permanent condition of devaluation but others can make a comeback. That’s why the phrase “Zombie Coin” has come to be used as a derogatory word to describe coins that exist but have no long-term worth.
Anyone can argue that a particular Cryptocurrency is a zombie coin, given the ups and downs of various Cryptos. Granted Cryptos are the latest trend sweeping the financial world, but even Bitcoin has been called a fad on several occasions, with skeptics predicting doom and gloom for the prime coin’s future. However, while Bitcoin appeared to be a fad or dead at one time, everyone is suddenly coming on board as the price of Bitcoin begins to increase once more. The price chart of a Crypto can very much tell you how popular it is. A parabolic chart, as a rule, is a good indicator of the popularity of a coin.
What Characterizes a Zombie Coin?
You’d be shocked by how many currencies have experienced repeated price increases before ultimately going back down. There are so many of these dead currencies out there in the Crypto realm that listing them all would take an eternity. ICOs (Initial Coin Offerings) was launched by several Crypto projects during the previous Crypto bull run in 2017, the majority of which sparked the interest of several retail traders, who loaded their digital wallets with tokens from these projects. The consequences were felt across the market, most token prices fell, with some plunging by more than 80%. Many would-be zombie tokens are born as a result of market-wide collapses, such as those observed in 2018, yet some remain dead forever and never rise from the dead. There is a possibility of a limitation for Crypto companies that continue to work on their platform or tokens that were previously assumed to be dead but still have a significant number of token holders, thus, the ‘zombie coin’ category.
Zombie coin Classification:
If an altcoin has fewer than ten appearances between 2014 and 2018, it is considered a zombie coin. For example, Paycoin [XPY]- Since 2014, this currency has only been in the top 10 twice [hence, appearances= 2], classifying it as a zombie coin. We can eliminate a coin from the zombie list if only it has less than ten entries but is presently rated in the top 50 based on the market capitalization on CoinMarketCap or CoinGecko. This rule applies to currencies such as LINK that have less than ten appearances but are in the top ten ranks [about under 50].
The following are some of the Zombie Cryptos:
1. BTCP (Bitcoin Private)
Bitcoin private is one of the most remarkable examples of a zombie coin. It was a fork between Bitcoin and ZClassic (privacy-centric Crypto), intending to develop a Bitcoin that could conduct anonymous transactions. At first, there was some buzz around it, with traders buying into it only to discover later that the token had little to no actual worth. Nevertheless, some exchanges now list Bitcoin Private, although it trades at extremely low volumes besides a few surges here and there.
2. BTX (Bitcoin XT)
There was a time when the Bitcoin XT project was up and operating. It was an effort to improve the Bitcoin protocol so that it could process more transactions at a quicker rate before becoming outdated due to a lack of support.
3. BTCA (Bitcoin Alpha)
Again another example of a deceased coin is BTCA, an “anonymous” fork built with the main goal of fooling users into thinking they were dealing with fresh new tokens when, in reality, it was just another unsuccessful effort to create an anonymous coin. Despite continuous Blockchain upgrades and reviews of new features, the coin is still unavailable on the majority of exchanges.
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