Trezor Identifies the Ease of Creating Your Own Altcoin

Trezor Identifies the Ease of Creating Your Own Altcoin

With the 5,000+ cryptocurrencies available, it can be daunting to distinguish the differences between Bitcoin and a useless utility token; analysts at Trezor speak on the ease of creating your own cryptocurrency (even without a technical background) and why you should be wary of ‘altcoins’, also known as sh*tcoins.

There are many Bitcoin maximalists in the space that think Bitcoin is the only useful and legitimate representation of blockchain tech, and all other coins will eventually fall to the wayside. Other enthusiasts will counter that technology needs to advance and improve before it is ‘perfected’, making altcoins valid alternatives in the space. Whichever side you happen to agree with, it is important to realize that is extremely easy for a user to make their own cryptocurrency, even without a programming background, leading to the introduction of thousands of useless coins in the cryptocurrency space. The analysts at Trezor argue that all new cryptocurrencies should be regarded as potentially valueless until they definitively prove they can provide users actual utility.

There have been many forks, or a coin splitting into different programming and governance styles, since the creation of Bitcoin; with the introduction of Ethereum and smart contracts, it became a lot easier to create your own currencies using the ERC-20 token protocol. Many people were able to build on this protocol, leading to projects getting massive injections of funds that are not commensurate with the actual value being provided by the coin.

Soon, thousands of entities starting launching their own ICOs, or Initial Coin Offering (a play on the term Initial Public Offering), allowing both potentially revolutionary ideas as well as flat out scams to organize easy and (mostly) regulation free fundraising. Although many of the projects raising money were 100% legitimate, there were undoubtedly some projects looking to capitalize on unsuspecting victims in the space.

Typically, these coins would make grandiose statements about the future potential value and utility of the coins, sucking in unsuspecting victims looking to get rich quick. While some investors were able to read between the lines and get out before it was too late, for many it was a wakeup call when everything came crashing down and their altcoins became valueless overnight. This alone makes it extremely important for potential investors to do their own research and dig deep into a project before investing.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

Bitcoin,CoinMarketCap,Ethereum

Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021
Casino,Ethereum,Gambling

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021
Bitcoin,Coinbase,CoinMarketCap

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021
Cybercrime,Scam,Trezor

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021
Bitcoin,eToro,Trading

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021
Bitcoin,Investment,Trading

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021
Sponsored

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020