Crypto Investments That Always Fail

Reasons Why Cryptocurrencies Fail

Lack of Utility

• A cryptocurrency needs to have real-world practical use or purpose
• Utility gives a coin or token value beyond hype and speculation
• Examples of utility: real-world payments, access to a platform or service, collateral, dividends, trading fees

Weak Community

• Cryptocurrencies thrive or die based on the size and strength of their communities
• A strong community is essential for success, with dedicated token holders and advocates
• Examples of strong communities: Bitcoin, XRP, Cardano

Bad Tokenomics

• Tokenomics refers to a cryptocurrency's economic model
• Research token supply, distribution, inflation, treasury, and community
• Why should anyone buy the token? What problem does it solve?
• Examples of bad tokenomics: Axi Infinity, World Coin

Running Out of Money

• Most cryptocurrencies are run by a foundation with a treasury
• Running a blockchain can be expensive, and spending too much money can lead to financial difficulties
• Examples: Pokedot, which spent 40% of its budget on advertising and influencers

Regulatory Environment

• The regulatory environment is quickly changing and evolving
• Cryptocurrencies don't fit neatly into existing regulatory frameworks
• Regulatory issues can stifle innovation and limit adoption
• Examples: Uniswap, privacy coins such as Monaro and Zcash