Based on the data obtained at this time, there are things that crypto players need to be wary of, who are still new to the world of cryptocurrencies. The thing to watch out for is the increasing number of dead cryptocurrencies or crypto coins whose profits actually only have zero value to anyone. If the percentage has now increased by about 35% from last year, that number can be said to have almost reached 2,000 crypto coins that died.
According to data from Coinopsy.com, the number has now reached 1,949 which have been identified as dead cryptos. When compared to February 2020, the total number of dead coins is 1,440 in number.
These types of dead coins are attributed to cryptocurrencies that no longer exist for a variety of reasons. Usually used as a coin scam, websites that are no longer active, have node or wallet problems, they have low liquidity value and can also happen because they have been abandoned by developers or stopped by their development.
With the increase in the number of dead coins, some of which reached a 'peak at first' in 2017 and onwards when many entrepreneurs or businesses started making initial coin offerings (ICOs) and have raised USD 4.9 billion over the year, according to Crunchbase.
In the past ICOs were meant to be able to create new blockchain-based cryptos or applications on related services. According to CoinMarketCap data, ICOs have increased the number of existing coins from 29 to more than 850 projects in 2017.
When viewed in December of 2020, the total presence of crypto that has been present has reached nearly 8,000 cryptos. And when on March 3, 2021, there were 9,108 cryptocurrencies which when viewed from the largest players were still led by Bitcoin and Ethereum.
With so many dead coins, it actually doesn't exist anymore because it never evolved or is just a toy coin. Just like joke coin projects, coins that have no real or concrete plan, but they are looking for investment and profit only. But there are still some crypto enthusiasts who still invest their money in it who knows what the real purpose is in their minds?
In conclusion, for newbies who are new to the world of crypto and want to invest in cryptocurrencies, it is better to first learn and understand the basics of the coin to be chosen. Are the fundamentals good and trustworthy? Don't get trapped just because you're being deceived by the lure of big profits which are actually just a trap for fraudsters in the crypto world.