Crypto Killers; In the crypto industry, we’re quite familiar with terms such as Ethereum and Dogecoin killers, meanwhile, these terms don’t refer to ending or “killing” the aforementioned tokens, instead, they imply certain tokens that are capable of taking over in the coming years. Embracing reality, there are certain circumstances and factors that are not just adept at overtaking cryptocurrency. They potentially pose full threats that are competent of destroying or thwarting its growth.
If not properly checked, these crypto killers are increasingly growing alongside the industry causing more harm without no good. In this article, the term “Crypto Killers” refers to certain factors that are militating against it. Some are necessary evils that the industry needed as guidance but now working against it. This Article aims to carefully address the various factors and circumstances that have mounted the Crypto killer height.
However, numerous factors are capable of taming the growth and popularity of cryptocurrency. These factors mostly emanate internally and outside the sphere. External factors are Hack, Regulation, Tax Rates, Legal Issues, Political and Economic crises. While Internal Factors are Rug Pull, System Charges, and Network glitches.
Types of External Crypto Killers
- Hacks: The threats of system hack toward the growth of the crypto sphere cannot be overemphasized. Growing reports about this technological militant are giving every concerned individual and entity in the industry a high degree of worry. Reports reveal that over $1.22 billion has vanished from Defi platforms within the first quarter of 2022. This staggering figure multiplies the total amount stolen in cryptocurrency by eight folds in the whole of 2022. At the moment, Investors and coin holders are growing fears due to these incessant attacks.
- Regulation and Tax Rate: From a logical perspective, regulations are meant to shield the industry and protect its operating environment. Unfortunately, in some countries, the reverse has been the case with most regulators forming strong resistance to it. Alongside regulation, we’ve seen tax rates as well effectively militating as a crypto killer, pushing investors away and dwarfing crypto embracement.
- Legal Issues: A direct explanation of how a legal misunderstanding belongs to one of the crypto killers is the ongoing SEC vs Ripple case. Obviously, the outcome of this lawsuit will go a long way to determine the future of the industry. Also, it entails every legal quality to set precedence for future cases. Nevertheless, ever since the inception of this case the XRP has struggled to gain stability and bear good dividends for investors. This clearly illuminates how legal tussle in crypto can affect the industry.
- Political Crisis: Crypto in Russia plunged into chaos when crypto exchanges discontinue operations in Russia to express their disapproval regarding the ongoing invasion of Ukraine. While Russia might have devised a way of shielding sanctions, Russian citizens will be struggling to enjoy crypto services. Therefore, this crisis and the decision of exchanges show how political crisis can affect the growth of crypto among these citizens.
Internal Cryptocurrency Killers
- Rug Pull: Rugpull is a term that describes a mischievous way that developers dump and project and makes away with investors’ funds. These mischievous developers carefully ambush investors’ funds when it reaches a certain amount. Mostly, this Crypto killer often takes place on DeFi Ecosystem because it aids the listing of coins for free without checkmate. Unfortunately, investors usually fall for the hype and promotion of these coins thinking it has a strong plan for growth and utility.
- System Glitch: Subtly, this is a major crypto killers investors, developers, and platforms are not paying attention to. Everyone despises any form of stress or discomfort, and so as well do investors. Recently, we are all witnessed what transpire during the minting of Yuga Labs Otherdeed NFT. The minting recorded the highest patronage of any NFT collecting which eventually crash the Ethereum network. Unexpectedly, a system glitch resulted in the loss of gas fees by some minters. This resulted in a dip in the price of ApeCoin that serves as transaction charges during the process.
- Charges: Hard to believe that this factor belongs to the team of Crypto killers. Ironically, many exchange platforms usually pose to offer the cheapest transactional charges. Aside from that, the mandatory charges that must be paid to a blockchain to transact a token on it are discouraging. This factor can discourage people from investing in a certain token due to the mandatory charges. Therefore, dwarfing its popularity which can silently affect the growth of the whole industry.
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