Newest cryptocurrencies: what’s starting up in 2021?
New cryptocurrencies are popping up every day. What’s new, what’s upcoming, and how can I start my own?
- The newest cryptocurrencies in 2021
- Setting up your own cryptocurrency
- What is coming up?
- A word of warning
In the world of cryptocurrency, new coins are being launched every day, it seems, and everyone wants to ride their own crypto-rocket to the moon. What are some of the newest cryptocurrencies? What do they look like? How are they meant to be used? What might happen to them? Here are some of the latest examples.
The newest cryptocurrencies in 2021
There are many cryptocurrencies currently making their way onto the exchanges. If we were to investigate all the new ones created in 2021, we would be here a very long time. For instance, on 13 August 2021 alone, 21 new coins were listed on CoinMarketCap. They were:
These newest crypto coins do a variety of different things. For instance, HI has created a wallet which, it hopes, will make paying through social messaging tools such as WhatsApp and Facebook Messenger easier. Meanwhile, VDV aims to “link the world’s old money with the future of Programmable Money, which allows people complete control while also educating and safeguarding clients.” These are all very new coins, so it might be difficult to predict which are the newest cryptocurrencies to watch, let alone which to invest in.
Arguably, the most interesting recent crypto launch was BitClout. This token is designed to allow users to buy and sell “creator coins” which are pegged to a range of people on social media. In effect, if someone does something positive, the coin should go up and, if they do something negative, it should go down. The organisation, for want of a better word, says it wants to “decentralise social” in the same way that bitcoin has decentralised money.
When the idea was first announced in March 2021, there was some controversy, as some of the celebrities were not happy about being linked to the new crypto. When the coin itself launched in June, it was worth $176. While the price first jumped, hitting a record high intra-day of $198.84 on 19 June, it soon dropped, spiralling down to reach an all-time low of $69.36 intra-day on 9 August. BitClout did, however, recover somewhat, and was standing at just over $100 on 16 August.
Analysts seem to be rather pessimistic about CLOUT, though. WalletInvestor, which is normally pretty bullish about its crypto forecasts, gives it a $22.438 price target for 12 months' time. That would represent a drop in value of more than 77% from current levels.
The number of new coins coming out does raise a question: how are they created?
Setting up your own cryptocurrency
Starting your own cryptocurrency is fairly straightforward. It is not simple, but it is easy to explain. To start your own coin, you take an existing coin, change its code, and then you have your very own coin. You will need strong coding skills if you want to do that.
If you are minded to start your own token, the process is different. You can, in theory, use some open source code on top of an existing blockchain and piggyback on the chain’s success. But If you are going down the token route, you launch an Initial Coin Offering (ICO). The idea behind this is to raise money to create liquidity, as well as making money from your new crypto. You will need to write a white paper, telling people what your token is going to do and how it works. Then you will need to advertise it so people know about it and get involved (hopefully).
Pay attention to the fact that there is not much regulation of ICOs, so governments are starting to take a real interest. Make sure everything you do is legitimate and above board.
What is coming up?
Looking forward, many new upcoming cryptocurrencies are due to hit the markets. One of the new cryptocurrencies that might appear to have potential is Diem, from Facebook. The social media giant announced it will launch the currency, which will be pegged to the US dollar, at some point later in 2021. It is being set up by Facebook’s digital currency group, the Diem Association.
Diem is currently registering as a money services business with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Facebook said that the pilot launch will take place in association with the California-based Silvergate Bank, although no firm date has been announced.
Although Diem will, in theory, be linked to the price of the dollar, it is still an interesting concept as it will not be linked to some specialist technological network, but instead to one of the biggest website brands in the world. Many who otherwise would not get involved in crypto could potentially make investments and transactions using this cryptocurrency. This could lead to a growth in the market, usually a good thing.
A word of warning
While you might be interested in and excited by the range of new cryptocurrencies, you do need to proceed carefully.
First, there is always the potential for getting caught in a scam. Make sure what you are looking at is legitimate.
Second, it is more than possible that the coin may fail, despite being set up in a well-thought-out, legal way. This happens more than you might think. According to Coinopsy, more than 2,000 cryptocurrencies have failed.
One of the most notable failures in crypto history was that of the DAO coin. This was set up in 2016 in conjunction with the DAO, or decentralised autonomous organisation, which was a system designed to help people promote and raise money for their start-up apps on the Ethereum network.
Unfortunately, there were security problems. This meant the DAO collapsed, despite intending to “blaze a new path in business organization for the betterment of its members, and despite existing simultaneously nowhere and everywhere and operating solely with the steadfast iron will of unstoppable code”. This failure took the DAO coin with it.
Others have not failed quite so spectacularly: they either run out of investors or they never even get off the ground. To put it another way, 70 cryptocurrencies are now listed as having an end project date of 2020 on Coinopsy. Some of these will have been new, promising cryptocurrencies before they died. We do not know which of the newest cryptocurrencies in 2021 will survive, let alone thrive.
The answer to this question depends on how you define “new” and how you define “there”. The latest info from CoinMarketCap suggests that there were at least 30 new cryptocurrencies coming into trade between Friday 13 August and Monday 16 August. According to figures supplied by Statista, between February 2021 and July 2021, there were 1,543 new cryptos launched, or more than eight a day. This number increases all the time. So how many cryptocurrencies are there? A lot.
This depends on whether you want an actual crypto coin, or whether you want to set up your own crypto token. If you want a coin, then you will need to have some coding skills to change the code and set your own variable with your own blockchain. If you are looking to create a token, then you can get some open source code and make use of an already existing network.
According to Coinopsy, 2,115 coins have officially failed, with 26 going under in 2021 so far. Whether it’s because they ran out of investors, or they were targeted by hackers, or they were just a scam, they are no longer in circulation. When you think that the latest figures suggest there are somewhere around 5,000 active cryptocurrencies, that means a little over a quarter of all cryptos have failed.