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Which Alternative Coins Should You be Avoiding?

Which Alternative Coins Should You be Avoiding?

When it comes to cryptocurrency, so many new coins have been appearing in the past 9 years since bitcoin was first developed, that some are bound to be duds. Of course, litecoin, ethereum, and ripple have all shown signs of potential recently, but these are only a few digital currencies within a sea of coins that have been created in the past near-decade. If you are considering an investment in cryptocurrencies and don’t know much about which coins are bound to fail miserably, here is your guide.

Do not simply pick and choose a few alternative coins to invest in without the proper research. There are far too many bad decisions to be made this way. Instead, inform yourself starting with this list of the top alternative coins that you should definitely steer clear of.

1. Gems

Now known as GetGems, this is a social networking platform that allows you to ‘work’ in order to gain GetGems coins. All you have to do is install the application and watch advertisements. The more advertisements you watch, the more coins you will gain.

Cryptocurrency investors did not seem to find this innovative platform interesting or worthwhile enough, however, only investing a total of $111,000 in the initial coin offering. To put this amount of funds into perspective, most coins require tens of millions of dollars in order to operate. Despite the fact $100 grand may seem like a fairly large amount, it doesn’t even begin to scratch the surface when it comes to the funds required for a digital currency to function properly on the market.

The alternative coin still exists, but the application is far from popular. Its most popular audience is within the country of Uzbekistan, where the GetGems app is number 63 on a list of the most popular apps downloaded.

2. Dogecoin

 Dogecoin wasn’t meant to be taken seriously. Instead, it was first developed as a joke based on a dog meme. This was until 2014, when the Dogecoin community began donating to charities. DOGE actually raised enough funds to pay for the Jamaican bobsled team to reach the Winter Olympics in 2014.

Dogecoin has faced two hard forks since it was first created. Forks are usually where the life of an alternative coin ends. Dogecoin, however, surpassed the expectations of most cryptocurrency investors by not only surviving these forks, but remaining relatively stable.

It was when the Moolah exchange that Dogecoin relies on went down that things began taking a turn for the worst. As soon as this occurred, the founder of Dogecoin took all of the funds left from the alternative coin and left. This caused DOGE to inevitably crash, and it has not been able to get back up since.

3. DAO

Ethereum’s DAO was quite possibly the biggest disappointment in the world of cryptocurrency so far. This is because DAO, the Decentralized Autonomous Organization, was so hyped and caused so much excitement within the cryptocurrency market. Reaching anything less than greatness was bound to disappoint its fans and investors.

As soon as DAO hit the market and was available to investors, people began buying tokens left and right. An unbelievable $168 million were raised within DAO’s crowdfunding stage. This is more than any crowdfunding project has ever raised. However, a few months later in June 2016, DAO’s platform was hacked. This caused the alternative coin to lose over $50 million. This was a loss that it was unable to return from. 

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