5 Shady Crypto Projects That Made It to the Spotlight

Key takeaways

• Crypto investigator ZachXBT criticized Token2049 for poor sponsor vetting, warning that platinum sponsorships don’t equate to legitimacy. Several sponsors he flagged turned out to have shady records.

• JPEX and HyperVerse used event sponsorships to project credibility. Both later collapsed under fraud investigations, causing billions in investor losses and arrests.

• Red flags include anonymous teams, low liquidity, overhyped marketing, poor tokenomics and listings only on obscure exchanges. 

• What drives these coins isn’t innovation but speculation, influencer buzz and cult-like followings, highlighting how unpredictability fuels their survival.

In the unpredictable cryptocurrency market, certain digital assets continue to exist despite facing controversies, significant price drops or lacking substantial underlying value. Though flagged as shady coins, they continue drawing considerable interest from dedicated followers. This sustained engagement is often driven by speculative excitement, strong community support and the allure of rapid profits.

ZachXBT, a well-known crypto sleuth, made some observations via his Telegram channel on a few sponsors of Token2049, a major crypto event. He felt the organizers of such events do little due diligence on their sponsors and that a project being a platinum sponsor doesn’t increase credibility. He went on posting on his channel about sketchy Token2049 sponsors.

This article explores why some coins demonstrate a remarkable persistence despite being sketchy. It discusses five shady coins that continue drawing crypto investors and investigates the reasons for their longevity. It will also explain how newbie traders can protect themselves from such projects.

Why shady coins survive despite the odds

Despite weak fundamentals, many questionable cryptocurrencies persist in the market. While most fail quickly, some survive or briefly thrive due to specific factors. These include:

• Speculative trading: Sharp price fluctuations attract risk-tolerant traders seeking quick profits.

• Dedicated communities: Loyal supporters, often driven by memes or nostalgia, keep these projects alive.

• Low market liquidity: Limited trading activity allows large investors or insiders to influence prices, drawing in speculators.

• Periodic hype: Social media trends, influencer endorsements or unexpected news can temporarily boost interest in these coins.

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