Dead coins are an actual burden for the cryptocurrency community. Not only do they result in substantial losses for miners and traders but they also leave a mark of unstable and fraudulent nature on the whole blockchain industry. The blockchain developers are precisely the people to deal with such issues, so they already came up with several solutions for the problem.
What’s a dead coin?
To start on the same page, we should define “dead coin”. Most of the time coins are referred to as “dead” when they:
- Stopped getting support and engineering work from developers
- Lost significant activity in their blockchain
- Missed attention of their community
- Are not supported by cryptocurrency exchange platforms
In fact, the majority of dead coins shares all of the mentioned symptoms. It doesn’t take much time for a coin that lost its developers to start forfeiting the audience and become deprived of its place on cryptocurrency exchanges. There are various reasons for a coin to crash, including situations like code malfunctions, revealing of scummy nature of the coin, decline of the community interest and many others, so no one is protected from turning out to be an owner of some amount of dead coins in his or her wallet.
However, there is no need to panic, as some services already emerged to help those with purposeless coins on their accounts.
The first project worthy of mention is CoinJanitor. The process proposed by CoinJanitor consists of 3 steps:
- The CoinJanitor team worked in cooperation with DeadCoins.com and made a list of dead coins, dividing them into groups by such parameters as age, exchange volume, blockchain transparency, and some others;
- After identifying a valuable project, CoinJanitor team offers cooperation to the community and developers of the project. After receiving positive feedback, they take over maintenance of the project and reach to all holders of the dead coin with a proposal of swapping their coins to CoinJanitor’s JAN – ERC-20 tokens that can be exchanged and sold for Bitcoin and other major cryptocurrencies;
- All coins of the dead cryptocurrency are then burned and its code base becomes open-source if it has something interesting to offer.
The CoinJanitor team believes that the value of JAN token will be gathered by uniting communities of dead coins and providing cryptocurrency market with some kind of insurance mechanism, which it obviously needs today. However, CoinJanitor is not the only service in the field.
The project called Jullar was also established to free people from the burden of useless coins in their wallets. Their main product – GES (The Global Eradication of Shitcoins) is a platform that is a compensating platform that burns useless coins. Users must stay in the queue, and they’ll eventually get at least 0.00004 ETH for each liquidated coin.
Not all coins will be compensated, dead cryptocurrencies for compensation will be chosen by the community. It’s also important to note that only users that have at least 200 JUL can use products of the platform and 1000 tokens can be compensated for one place in the queue.
Funds used for compensation are gathered from investments and donations from active members of the industry and the Jullar project revenue made with its other products. Those products include ICO Scanning Jullar (ISJ) – a platform for verification of ICO reliability and Blockchain JOUST JULLAR (BJJ) – decentralized tournament, for owners of cryptocurrency.
The future of dead coins problem
A significant part of the cryptocurrency community is waiting for some way to get rid of useless coins and make some profit on it. No doubt, someday a robust solution for this matter will be invented and it is possible that one of the current projects will be a developer of such a solution. So, if you have some amount of dead coins, maybe it’s not the time yet to throw them away.