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Though Bitcoin and Ethereum gained value, Altcoins have shown the least sign of hope.
The Russia-Ukraine war has changed the crypto landscape drastically. Though cryptocurrency emerged as a major player in determining the course of the war, it has also resulted in the death of many altcoins. In the last few weeks, cryptocurrencies like Bitcoin and Ethereum values have wavered a lot on the crypto charts. In spite of major cryptocurrencies gaining their value back, a number of altcoins are left in a ‘life or death situation. Bitcoin killers that emerged out of the blue after ‘cryptocurrencies’ became a buzzword are now looking for a last resort where they take shelter to sustain the geopolitical blows.
Bitcoin’s value had a steep to US$35,082.66 and Ethereum fell to US$2,350.25 as soon as Russia declared war on Ukraine. Alongside all other major altcoins felt the blow. However, when Russia started using cryptocurrencies to tide over the sanctions imposed by western countries, Cryptocurrencies picked up some value. Not only Russia, but also Ukraine, and its people are responsible for cryptocurrencies’ revival. Ukraine’s government’s attempt to raise cryptocurrency funds via crowdsourcing infused new energy into the crypto market. As most of the crypto transactions happened in Bitcoins and Ethereum, the altcoins have lost their tailwind. The so-called Bitcoin killers are relatively underperforming and it is waiting and watch situation to see if they can stand the blow or simply disappear.
Does ‘Crypto Graveyard’ exist?
Yes, the so-called ‘dead coins’ or ‘Crypto Graveyard’ really exists. But how come cryptocurrencies end in a graveyard? Let’s start by exploring the basics. Generally, when either a developer abandons a project or its trading volume drops below US$1,000 for more than three months in a row, cryptocurrency death happens. But both these things happen when cryptocurrencies are created without a strong plan in mind. When the circumstance changes, the nature of digital tokens can’t change. However, they can’t comply with geopolitical blows like the one going on in Ukraine. That is when they fail to comply with the market scenario and sustain the situation. Particularly, altcoins fall victim to this circumstance very often because some of them are built with a fragile motive.
On the other hand, we also have crypto scams that are taking a toll on investors’ money. OneCoin scam remains the largest to date and probably taught traders a lot of value able lessons. The cryptocurrency gained popularity between 2014 and 2016. The platform that acted as the only source to cash out OneCoin was shit down in 2017, resulting in investors losing US$4 billion.
Altcoins’ future is in a limbo
Most of the altcoins try to follow the footsteps of Bitcoin. The developers try to imitate the nature of BTC or sometimes Ethereum. But truly, a lot of them couldn’t even active 50% of what Bitcoin and Ethereum have done so far. They disappear in thin air due to a lack of long-term viability. As of May 2021, over 2,000 cryptocurrencies have failed and a lot more failures are yet to be discovered.
According to some experts, the cryptocurrency market might completely disappear in a decade or two. They compare it with the 1990s dot-com bubble that went bust at the time. But one thing that makes Altcoins the first victim of changes is their non-planned nature. The crypto developers don’t spend enough time designing a business use case for their tokens and coins. They just launch their idea of coins without considering the economic and geopolitical changes.
Geopolitical events are wreaking havoc on Altcoins
The Russia-Ukraine war is not the first time geopolitical changes took Altcoins as victims. It has happened earlier also when there was ongoing civil unrest and increasing economic struggles in Turkey. But now, the situation is even worse for the potential Bitcoin killers because the cryptocurrency market has gained more dominance than ever before. Therefore, just like the stock market and NIFTY, cryptocurrencies including Bitcoin and Ethereum, and other altcoins are experiencing a value decrease.