Each year, new projects are filled with crypto industry. At the same time, there are not so many real developments, and a large share of Koinov turns into the so -called “ghosts”. How to identify them and how are they dangerous?

The “ghost cryptocurrencies” are technically existing projects, but with about zero activity. The “lack of life” is manifested in the fact that the developers do not even make minimum changes for months. This is superimposed on extremely low trading volumes on exchanges. In addition, the production of blocks and transactions in the network falls, as well as the activity of the project community on social networks is reduced.

How to recognize “cryptocurrency-germinat”

The two simplest things that can be done is to check the news about a specific cryptocurrency recently, as well as analyze its trade volumes. As for the news, if there are no significant events in six months, then this should be alert. You can analyze trade volumes using publicly accessible trading portals, like Coinmarketcap And TradingView.

On the first you can check on which exchanges a specific cryptocurrency is traded. If it is not present at the largest sites such as Binance, Coinbase or Kraken, then this is a dubious signal. The second checks a specific trading volume. If you can see that it has recently occurred, then this, at least, indicates a decrease in investment interest. This, in turn, can be a marker so as not to invest in money. The latter is especially true if this is superimposed on a drop in cryptocurrency prices. But these are far from all ways.

The next steps are slightly more complex and requires some immersion in the problem. To check social networks, first you need to visit the official site. It must function and at least occasionally change – replenish the news. As a rule, the official site contains links to social networks: Telegram, Discord and others. It is worth moving on each link and see what is happening in each of them. If the messages from real people are almost not received, and most of the spam occupies the majority, then the project, obviously, has problems. If there is no activity in principle, then the conclusion is similar.

Checking the activity of developers can occur in two ways. Firstly, there are portals that publish trade and technical data on cryptocurrencies. For example, Santiment Does it every month. Secondly, you can go to portal Github. Even if an ordinary user does not understand the features of the software code, he will at least be able to track the dates of changes. If innovations have not been made for several months, then it is worthwhile to be wary.

We can also conclude about activity in the field of decentralized finance (Defi) based on the TVL indicator – the total locked value in the network protocols. If it does not grow or fall, this indicates a decrease in the interest of users. In the public domain all information is on Portal Defillama.

Finally, transactions and blocks of blocks can be checked using various blockchain reconstruction (Etherscan, Solscanand others). If the indicators fall or extremely low, then this is an occasion to think.

Examples of “cryptocurrency ghosts”

In June 2024, the Binance exchange delusted four cryptocurrencies: Omisego (OMG), WAVES (WAVES), WRAPPED NXM (WNXM) and NEM (XEM). She I did it This is based on the following factors:

  • low involvement of the project team in its development;

  • low activity of developers;

  • stability and security of networks from attacks;

  • stability of the network and smart contracts;

  • involvement in social networks;

  • answers to periodic requests of the exchange;

  • evidence of unethical/fraudulent actions or neglect;

  • new regulatory requirements;

  • contribution to the development of a healthy and viable cryptocurrency ecosystem.

Most points from the list indicate that these projects were cryptocurrencies-ghosts. It is worth noting that all of them still continue their existence.

The danger of “cryptocurrency ghosts”

The main risk is the loss of capital. It can occur in two ways: firstly, due to a decrease in the cost of cryptocurrency; Secondly, due to various fraudulent attacks, the probability of which is high, since the developers are practically not engaged in the project.

The second danger is that material and temporary resources spent on creating an infrastructure of a digital asset are wasted. Although, this is inherent in any business to one degree or another.

The third danger-the emergence of cryptocurrency germs undermines the confidence of the crypto community to new initiatives. In order to win their place under the sun, developers will have to spend more time and effort in the future to prove their viability.

Another hidden danger lies in the fact that sometimes, albeit rarely, a ghost cryptocurrency comes to life. Investors have already left the project with a loss, and it is rebelled from the ashes, like a phoenix.

Conclusion

Ghost cryptocurrencies are digital assets, the interest in which was lost not only by investors, but even developers and enthusiasts. However, in some cases they can be revived. The detection of cryptocurrency ghosts is carried out by monitoring special resources for tracking trade and network activity, as well as developers.