Failure of most cryptocurrencies and NFTs

Recently, I discussed about risks about various cryptocurrencies including the popular NFT with my friends. There are two main reasons why they failed, including fraudulent schemes to poor planning.

There are over 10,000 cryptocurrencies currently on the market, some of them aim to work as currencies to replace dollars one day, others offer affordable loans in developing countries, one even have the lofty崇高的 aim and promises to change the internet as we know it. [1]

Over 2,000 coins have died since Bitcoin was born in 2009. Coins fail or are abandoned for many reasons, including:

Frauds and scams

Failure to make business plans

Loss of traction牵引力

Personal problems faced by the developers

Although all crypto investments carry risks, we still have solutions for identify cryptocurrencies with existing health problems. for example, we have to find out the founders of the coin you want to invest in, then you get to know the plan of the business you invested. Also, a very high percentage of joke coins fail completely, coins that are listed on the top cryptocurrency exchanges gives some degree of protection and its social media and website are active.

Then let’s look at NFT, what are the main differences between NFT and cryptocurrencies?

NFTs (Nonfungible tokens) are not mutually interchangeable, hence not fungible. Every NFT is different.

They are unique digital assets representing real-world items, such as photos, music, videos, and trading cards. They are managed in a digital ledger数字账本 and bought and sold online. For example, rather than purchasing an actual photograph to display on a wall, the buyer receives an original digital file. Nearly any digital asset, such as a piece of collectible digital characters, virtual real estate, or original social media posts, can be created and purchased as an NFT.

NFTs are sold in collaboration with auction houses or in NFT marketplaces,