FAQ

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"The proliferation of these coins gained momentum during the initial coin offering (ICO) craze that rocked the space in 2017. ICOs raised the number of available coins from 29 to over 850 projects. In 2018, developers launched more than 1,200 crypto projects, adding even more to the space. In December 2020, the total number of cryptocurrencies reached nearly 8,000. " Source CoinMarketCap.com

FAQ

01

Active Coins/Tokens

Active addresses count the number of unique addresses that participated in a ledger change. For this unadjusted version of the metric, all ledger changes are considered.

03

Dead Coins/Tokens

Dead coins are digital assets of projects that have been abandoned, turned out to be scams, have low liquidity or have insufficient funding, among many other reasons.

You’ll often find dead coins by clicking the “Show All Balances” tab on your Binance wallet section, or by doing a search on your wallet’s public address.  Be warned: for any crypto user with more than two years of investment under their belt, the sight of their vanquished moonshot coins may be too much to bear.

There are websites such as Coinospy and Deadcoins that track deceased crypto projects floating in this dead space. Reporting dead coins can even earn you extra money or recognition from these sites.

02

Inactive Coins/Tokens

An “Inactive” ICO listing in Token Clarity. The No ICO status would be given to projects that have no intention of either minting a token or holding a sale of tokens to the public.

04

Tokens vs Coins

Source: CoinMarketCap.com

Encrypted coins and tokens can fall under the heading of crypto. And, generally, they can be listed into two sorts of cryptocurrency: alternative cryptocurrency coins (Altcoins) or tokens.

Alternative Cryptocurrency Coins (Altcoins)

Altcoins usually refer to any coins that are not Bitcoins. Bitcoin is a popular digital currency that’s produced by computational solutions to complicated math problems. It works separately from a central bank or state entity (i.e., government-backed Treasury).

Some altcoins include:

•  Peercoin
•  Litecoin
•  Dogecoin
•  Auroracoin
•  Namecoin

In fact, the name “altcoin” actually means “alternative to Bitcoin.” Namecoin is considered the very first altcoin, created in 2011.

Like Bitcoin, most cryptocurrencies listed here have a limited supply of coins—to keep the balance in check and to reinforce its perceived value. There is a fixed number of Bitcoins that can exist—21 million, as decided by the creator/s of Bitcoin, though some remain to be mined. Once all 21 million are tapped (the number changes when new blocks are mined), that’s it. The only way to bring in more is for Bitcoin’s protocol to allow for it.

Though most altcoins are built upon the same basic framework as Bitcoin, many claim to be better versions of Bitcoin.


Each system can differ from the next, as they’re created to serve various purposes and applications, and identified in different ways.

Some coins don’t work with the same open-source protocol that Bitcoin does, however. For example, the following list of cryptocurrencies have created their own separate systems and protocols:

•  Ethereum
•  Ripple
•  Omni
•  Nxt
•  Waves
•  Counterparty

They’re each self-supporting, too.

 

Tokens

Unlike altcoins, tokens are created and given out through an Initial Coin Offering, or ICO, very much like a stock offering. They can be represented as:

•  Value tokens (Bitcoins)
•  Security tokens (to protect your account)
•  Utility tokens (designated for specific uses)

They are not so much meant to be used as money as they are used to describe a function. Like American dollars, they represent value but they are not in themselves of value. Tokens are a type of encryption, specifically referring to the long lines of numbers and letters representing the crypto used in a transaction, such as a money transfer or bill payment. In short, tokens cover a number of meanings.

For instance, both Bitcoin and Ether (from Ethereum) are considered crypto tokens.