Zombie Coins: Are Zombie Coins and Dead Coins the Same?
In the crypto world, zombies aren’t mythical. Thousands of cryptocurrencies exist in the market without showing much movement. You can spot zombie coins through crypto analytics platforms like CoinMarketCap and CoinGecko. When you read in the metrics “with a trading volume of $0” there, you’ve met a zombie.
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What Are Zombie Coins: How They Are Different from Dead Coins
Not all cryptocurrencies become and stay successful. There are over 13,600 coins and tokens listed on CoinGecko in 2024. This number keeps changing every day along with the rankings of cryptocurrencies. Once popular cryptos like Quark (QRK) and Nxt (NXT) that were in the top 10 by market cap, today are mainly forgotten.
Zombie coins are assets that exist on the blockchain but have lost their utility, and value.
Over time, some of them may make a comeback, but many are stuck in devaluation.
In a sense, zombie coins are similar to dead coins, but there are a few differences between them:
- Zombie coins still have value, although it is significantly reduced. Dead coins have a $0 value.
- Zombie coins are still operational, while dead coins are completely abandoned by developers and the community.
The chances are high that zombie coins will join the list of dead coins. But, cryptocurrencies don’t disappear in a day. Zombie coins exist as they operate on a specific platform or there’s somebody holding it.
Why Some Cryptocurrencies Turn Into Zombies
A cryptocurrency is classified as a “zombie coin” when interest in it has faded and it’s no longer traded actively. Not long ago, the crypto market was shocked by the failure of the popular blockchain project Terra LUNA. In 2022, Terra USD stablecoin lost its peg, and the LUNA coin was down by 99%. Although the project was rebranded and still has millions of trading volume, this is a case of a cryptocurrency losing its leading position in the market. Zombie or not, today’s Terra LUNA will hardly see the previous success.
The causes of a cryptocurrency turning into a zombie include:
- Market crashes: Bear markets often reveal the vulnerabilities of crypto projects testing which of them can handle crises and which ones will go underwater.
- Failure to deliver their promise: At the time of launch, many projects make big announcements, promising huge investment returns, and marking themselves as the ultimate Bitcoin or Ethereum killer. Later, investors may find out that things don’t go as expected because of technical challenges, hacks, or other issues. The interest declines, resulting in a new zombie coin in the market.
- No active development: When a platform doesn’t get any upgrades and doesn’t have future perspectives, its native coin can soon turn into a zombie. That’s because the crypto industry grows fast and new projects can outperform old ones if they stay in the same place.
- Lack of community interest: No demand and interest in a certain cryptocurrency means it won’t have a successful run.
Zombie Coin Examples
There are cryptocurrencies that come and stay, there are cryptocurrencies that come and go and there are cryptocurrencies that are stuck in uncertainty. Below are some coins that were quite popular once but gradually lost their market position.
Nxt (NXT)
Launched in November 2013, Nxt (NXT) quickly gained popularity. It was one of the first blockchains designed for application development. NEXT was supposed to be the “next” after Bitcoin. The network used the Proof of Stake consensus mechanism, which means to verify transactions, network participants stake coins. After launch, NXT appeared in the top 5 cryptos by market cap. Today, however, it’s behind #8200 with a daily trading volume of around $1,000. Apparently, the strong competition left NXT behind. The development team behind the project, Jelurida, didn’t abandon the platform but is more focused on their other project, Ardor.
Bitcoin Private (BTCP)
BTCP was launched in March 2018, with an aim to combine the capabilities of Bitcoin and Zcash. The coin had initial success, making it to the top 25 cryptocurrencies by market cap. However, in October 2018, the Bitcoin Private was hacked. Interestingly, the hacker named GeoCold, announced he was going to perform the hack in advance and livestreamed the process. The BTCP went dormant after the hack and has as little daily trading volume as $20.
Quark (QRK)
Here’s another early cryptocurrency. Quark was launched in July 2013, and as many other cryptos of the time aimed to provide alternatives to Bitcoin, mainly faster transactions, low fees, and a high level of security. Quark adoption started to grow. The coin got into the top 10 assets by market cap to be hacked soon and decline in price. Compared to the previously mentioned NXT and BTCP, QRK is more active. It’s 1938-th by market cap and has a daily trading volume of over $1,000. But, given its sharp decline and decreased interest, the coin is now a leader among zombies.
Closing Thoughts
Zombie coins present risks as they may never recover. At the same time, spotting them early on is a challenge. What can be done is to research the project, monitor market prices and news to sell or exchange your coins when necessary. Otherwise, when interest declines, it will be difficult to do so. Investing in zombie coins or holding onto them is a personal decision, and everyone needs to consider how much risk they are willing to take.
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