worst-performing cryptocurrencies 2018

It’s been a brutal year for crypto, but which are the worst cryptocurrencies? After the boom of 2017, the whole crypto market is in the red. Some projects are on the verge of bankruptcy while others are taking drastic measures such as cutting staff and re-organizing. 

However, some cryptocurrencies have performed worse than others. Here, we rank the ten worst-performing cryptocurrencies of 2018 and look at some of the reasons for their poor performance.

Worst-Performing Cryptocurrencies, Criteria: 

  • This list only includes coins in top 100 by market capitalization, thereby excluding lower-ranked altcoins. 
  • We exclude all stablecoins pegged to another asset, such as Tether, PAX, and Dai.
  • We exclude any project that hasn’t been around for at least six months.
  • All prices sourced from CoinCodex, tracked from January 1st, and ranked by percentage fall in market capitalization. 
  • All prices correct at time of publishing (10th December, 2018).

10. Bitcoin Cash (BCH) -95.5%

Bitcoin Cash suffered a disastrous end to the year after a contentious hard fork split the community. A vicious war of words broke out between the two sides and miners went to war. The blockchain ultimately split in two, spawning a new cryptocurrency, Bitcoin Cash SV. The controversy had a wholly negative impact on the value of BCH which has dropped 95.5% this year.

Further reading: Everything You Need to Know About the Bitcoin Cash Fork

Bitcoin Cash price chart 2018

9. Elastos (ELA) -95.58%

Elastos (ELA) is a cryptocurrency that aims to be used as part of the first completely safe and decentralized infrastructure for the internet. According to comments on various social media channels, here are some negative things to note about ELA. The inflation rate is too high, not many exchanges list this crypto, and specialized hardware (Elastos server) is needed to run applications. As of late 2018, there also isn’t support for ELA on major hardware wallets like Trezor and Ledger.

Elastos price chart 2018

8. ICON (ICX) -96.08%

ICON (ICX) launched with the goal to “hyperconnect the world” and “enrich our everyday lives through ‘connection’”. This is one of many projects aiming to improve blockchain interoperability. AION, Wanchain, and ARK are considered by many to be ICON’s top competition. 

Thus far, there have been a few relevant criticisms of the project. For example, after the mainnet launch in January 2018, the token swap was a slow process that dragged on all the way into late October 2018. Although the project has been in development for two years, the website still doesn’t have a proper roadmap listed.

ICON price chart 2018

7. Verge (XVG) -96.35%

Verge (XVG) announced a big partnership with PornHub in April 2018; however, this hasn’t had a positive impact on prices long-term. The biggest issue for this project in 2018 has been the constant 51% attacks. Although security issues have affected a number of exchanges and blockchains this year, Verge’s security woes are some of the most reported in crypto, and for good reason. 

In May 2018, one attack alone affected over 35 million coins in around five hours. The hacker stole around $1.8 million in XVG. While other projects that have suffered from 51% attacks, XVG has clearly been the most impacted this year. 

Verge price chart 2018

6. Populous (PPT) -96.69%

Populous Platform Token (PPT) is a cryptocurrency for Populous’ smart contract invoice finance platform, which runs on the Ethereum & RSK blockchains. There appears to have been a number of issues with the project’s technical features throughout 2018. For example, users of the beta version of the platform received error 502 and faced other problems. Therefore, many found it difficult to test the platform’s functionality. 

Another common criticism is a lack of responsiveness from the project team to questions from the community. As this article points out, this issue was also prevalent in 2017. The Telegram channel account owner has been inactive since July 2017, and this platform only had around 1,300 members.

PPT price chart 2018

5. Ardor (ARDR) -96.86%

Ardor (ARDR) is a cryptocurrency designed specifically for business applications. Looking at the project website, the Ardor platform itself is being developed for blockchain-as-a-service purposes. This project evolved from the Nxt blockchain, the first Proof-of-Stake consensus network. Ardor also features a unique parent-child chain architecture. 

Compared to others on this list, there doesn’t seem to be too many negatives regarding this project in 2018. Despite some wallet and network issues earlier in the year, it’s tough to pinpoint the exact cause of ARDR price declines. Perhaps the biggest issue (as with many blockchain projects) is that the tech is still underdeveloped.

Ardor price chart 2018

4. Bitcoin Diamond (BCD) -97.11%

Bitcoin Diamond (BCD) raises a few potential red flags for some people. For instance, its two main developers go by the pseudonyms “007″ and “Evey”, and source code isn’t available. Regardless, BCD aims to reduce transaction fees and completion times. Compared to BTC, BCD has larger block sizes, a higher total supply, and simplified mining processes. 

According to the first Weiss Cryptocurrency Ratings released in April 2018, BCD and a few other Bitcoin hard forks are merely copycats. While this report does highlight some of the positives of these new cryptocurrencies, it notes that BTC being the first-mover does take away some momentum from projects like BCD.

Further reading: 5 Failed Bitcoin Forks that Never Made It

Bitcoin diamond price chart 2018

3. Bitcoin Private (BTCP) -97.26%

Bitcoin Private (BTCP), as the name suggests, provides the possibility of private transactions. If you’re well-versed on cryptocurrencies, you know that BTC isn’t really anonymous. That’s why BTCP was created as a merge fork of Bitcoin and ZClassic. BTCP aims to compete with Verge, Monero, and other privacy coins. 

Earlier in 2018, a big discussion on the BTCP subreddit surrounded the lack of listings from top exchanges. Since then, low liquidity trading and conflicts within the team and community have all continued to be major issues. Still, it’s important to note that BTCP is one of the newer projects (launched in March 2018), in the top 100 market cap rankings.

Bitcoin Private price chart 2018

2. Qtum (QTUM) -97.36%

Qtum (QTUM) is another project that aims to become a leader in the smart contract market. The project made significant progress after its ICO ended in March 2017. The testnet launched only three months later. 

The mainnet launched three months after the testnet release, very quick when compared to the vast majority of blockchain projects. The issue seems to be that Qtum’s competition has implemented better technology, at least as of late 2018. According to one article, Aion and ICON are both ahead of Qtum. There are also other competitors to consider like Ethereum, NEO, Zilliqa, and many more.

Qtum price chart 2018

1. Aion (AION) -97.57%

Aion (AION) is a third generation blockchain project that (as mentioned above) competes with ICX and others by focusing on increasing interoperability between various chains. Some potential use cases listed on the project website include supply chain logistics, Internet-of-Things, online media marketplace, fundraising, and digital identities. 

As with Ardor, Aion doesn’t seem to have faced too many major issues in 2018. Nonetheless, some people have said that the project is too ambitious and it finds itself with the biggest percentage drop in market cap of 2018.

Aion price chart 2018

Conclusion

After the euphoria of 2017 and the rapid growth of altcoins, this year has been tough for cryptocurrency projects. It has been predicted that most altcoins will “go to zero,” but can the projects on this list turn it around next year? Join us tomorrow for our run-down of the best performing cryptocurrencies of 2018.

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The privacy-focused cryptocurrency Verge, is quickly becoming a running joke within the cryptocurrency industry, after repeatedly suffering 51% attacks and having hackers exploit a vulnerability that’s led to millions of dollars in Verge tokens being stolen.

It started back in April, when Verge suffered a small 51% attack that resulted in 250,000 XVG being stolen by hackers. Verge responded by hard-forking their blockchain, however, the 51% attack was repeated just last week when hackers added a second algorithm to exploit the same vulnerability previously used by the attackers.

51% attacks happen when hackers use a malicious code to mine multiple blocks per minute on a blockchain, allowing the attackers to gain majority control over network hashrates and move XVG to their wallets. At the peak of the second attack, the hackers were mining 25 blocks per minute, or roughly 8250 XVG or $950 a minute being stolen by thieves.

Verge downplayed the attack as nothing more than a DDoS attack, but according to reports, over 35 million in XVG tokens, amounting to over $1.7 million dollars, was stolen as a result of the attack.

Today, the prominent BitcoinTalk ocminer user who discovered the last two attacks, is reporting that Verge has yet again suffered a 51% attack. In the BitcoinTalk forum thread titled “Network Attack on XVG / Verge” ocminer says “Yup… attack again.. as already said, simply reducing drift time doesn’t fix it..”

Verge’s blockchain isn’t the only location hackers have targeted. Verge’s twitter account was also compromised this past March in an unrelated attack.

On a more positive note, Verge made news for becoming the first ever cryptocurrency to be accepted by adult entertainment website Pornhub for their premium subscription services. As one Redditor so cheekily said “Maybe they should take a note from Pornhub and learn to plug up the holes on their blockchain.”

Last month, privacy-focused cryptocurrency Verge was the victim of a ’51 percent attack’ an unfortunate scenario (for Verge and its investors) that resulted in roughly 250,000 XVG being stolen. Verge responded with a hard fork, but unfortunately, it appears the vulnerability still persists today despite countermeasures being taken.

According to OCMiner, the bitcointalk.org user who initially discovered the empty blocks – thus alerting the cryptocurrency community to the initial Verge hack back in April the same glitch that was exploited previously was targeted again by hackers, resulting in yet another attack. This time, though, a staggering 35 million XVG tokens were stolen – worth over $1.7 million according to data from CoinMarketCap.

Like the previous 51 percent attack, hackers were able to mine multiple blocks one minute apart from one another, and gain control over the majority network hashrate, compromising the blockchain and resulting in XVG tokens being stolen by the hacker.

In a Reddit post raising awareness of the exploit, user Flenst explains that the new hack simply adds a second algorithm in addition to the one used in the previous attack, to achieve the same dominance over Verge’s blockchain. The Reddit post also claims that the hackers were mining 25 blocks per minute, “resulting in 8250XVG or 950$ per minute” being stolen by the hacker.

Verge took to Twitter to downplay the hack, saying their mining pools were “under dos attack,” causing a delay in block mining – but the community isn’t buying it, even replying to Verge’s tweet with a link to the aforementioned Reddit post outlining the entire attack. Ironically, even Verge’s official Twitter account was hacked back in March in an unrelated attack.

Despite all the bad news lately for Verge, the company revealed a huge partnership with Pornhub last month, with Verge being the official cryptocurrency accepted by the adult content provider for premium subscriptions.

fake news

“Fake news” — that’s how Binance responded to reports that the cryptocurrency exchange giant is preparing to add USD trading pairs to its online trading platform.

The Hong Kong-based exchange, which is currently in the process of moving its operations to Malta, said Thursday that while it is holding discussions with banks in the hopes of adding fiat-to-cryptocurrency trading pairs in the future, it has “no plans” to support USD in the short-term. Nor, when it does offer fiat pairs, will verge (XVG) or ripple (XRP) receive preferential treatment.

That statement, straight from the Twitter account of Binance CEO Changpeng Zhao, contradicted baseless reports from several industry media outlets that claimed the exchange had announced that it was adding XRP/USD and XVG/USD trading pairs to its platform.

Part of the confusion may also stem from the fact that Binance has gradually been rolling out USDT trading pairs for altcoins that are listed on its platform. Better known as ‘tether‘ and created by a company of the same name, USDT is a cryptocurrency token that is supposedly backed by physical dollars at a 1:1 ratio. However, USDT holders cannot withdraw dollars directly to their bank accounts, nor can they deposit actual USD at Binance.

Binance currently ranks as the world’s highest-volume cryptocurrency exchange, with daily volume in excess of $2.1 billion. Consequently, getting listed on Binance increases a coin’s liquidity and generally leads to positive price movements — at least in the short-term.

Becoming one of the few coins to trade directly against fiat currency pairs has an even more profound effect on a cryptocurrency’s price, as it allows the coin to decouple from bitcoin and ethereum and trade in an isolated market.

It’s impossible to know the justification behind spreading these false rumors, though it would not be surprising if at least some of the perpetrators did so to artificially inflate the verge and ripple prices so that they could turn a quick profit.

Featured Image from Pixabay