Cryptocurrency has received a lot of attention for the extraordinary gains that some coins have had in a short amount of time. The opposite side of this, that not many people discuss, are the vast majority of cryptocurrencies that completely fail.
The beauty of the blockchain is that a record of these cryptocurrencies exist as long as the blockchain exists.
One of those failed cryptocurrency projects is Pollux Coin (POX). The coin still exists in some form on two cryptocurrency exchanges, but it’s a completely dead project at this point. This article will briefly cover the project, explain what went wrong, and offer some tips to avoid investing in projects that will likely suffer the same fate.
What is Pollux Coin (POX)?
Pollux Coin (POX) is a TRC-20 token on the Tron blockchain. This means it uses the hashing power of Tron to power transactions rather than having its own miners.
There’s nothing wrong with this. Plenty of successful cryptocurrencies are tokens on a bigger blockchain. Though there aren’t any TRC-20 tokens that are wildly successful at the time of writing.
Anyway, Pollux had the somewhat unoriginal idea of offering a decentralized way to store files and share data. The project also wanted to offer a solution to pay utility, “mobile recharges,” and other online payments.
The Pollux website offers next to no information about the project other than the very brief information we outlined. Even the whitepaper on the website offers very little technical information about the project.
Is Pollux Coin Dead?
We would not call Pollux Coin a dead project just yet because it’s still possible to purchase the coin on two exchanges and the website is still up and running. That said, the trading volume is about $900/day total.
It’s basically dead.
We are not sure why anyone would actually invest in this project at this point in time. The Twitter account’s last tweet was April 21, 2021. The account has a grand total of three tweets all-time since its creation in August 2020.
The project is about as dead as it gets while still existing to some extent. It’s like the lead developer just abandoned the project.
What Went Wrong With Pollux Coin (POX)?
There were a lot of problems with Pollux Coin, which makes it no surprise that the project never really took off in any meaningful way.
We would actually be more surprised if the project did take off with everything it had working against it.
The biggest problem with Pollux is that the project was launched on Tron. For those that don’t know, Tron is sort of the laughing stock of the cryptocurrency industry. It gained a lot of attention in 2017 when the founder, Justin Sun, made a bunch of “announcements of future announcements” and used rather outlandish promotion methods to promote TRON.
These promises went unfulfilled and the more laid back cryptocurrency community (at the time) did not appreciate his marketing style.
Sun also did not reinvest into the development of the blockchain.
He did get Tron a lot of attention, but many people did not like his promotion methods.
This is not good for anyone that wants to launch a token on Tron. Many in the cryptocurrency community see that a project is launching on Tron and just roll their eyes because of the many antics that Justin Sun has pulled over the years. The man once claimed he was the CEO of Ripple to Chinese media in a recorded interview.
Launching a token on Tron is like building a house on a foundation of sand. People would rather launch on something more stable like Ethereum. It has a founder, Vitalik Buterin, that will not tarnish the brand or anything like that.
Note: We are not saying that Tron itself is a bad project. It’s Justin Sun’s antics attempting to hype Tron over the years that have tarnished Tron more than anything. For the record, Justin Sun stepped down as CEO of Tron in late December 2021 and now serves as a diplomat to Grenada.
Now, even if Pollux launched on a blockchain with a better reputation it would still have a lot of problems that would seal its fate from day 1.
Our biggest gripe with the project, however, is that the website offers next to no information about the project. The whitepaper is borderline useless at only 12 pages (5 are legal disclaimers and the cover page) of total fluff, which is far too short for a whitepaper of a relatively complicated project like Pollux.
For example, the white paper states:
“A Blockchain-based storage system prepares data for storage by creating data shards or segments, encrypting the shards, generating a unique hash for each shard and creating redundant copies of each shard. The replicated shards are then distributed across the decentralized nodes in the Blockchain infrastructure”
That’s all it mentions about how they plan on implementing a file sharing system on the blockchain. Create data shards, encrypt them, generate a hash, and then distribute it to a blockchain.
It does not mention anything about the encryption algorithm, hashing algorithm, or how they plan on distributing shards to the blockchain.
We would expect a whitepaper for a project this complicated to be in the 30 page range at a minimum. Memecoins often have whitepapers that are 30+ pages. Bitcoin did have a 9 page whitepaper, but it was a very dense whitepaper that briefly outlined the problem in a paragraph and then offered a solution over the next 8 pages. The Bitcoin whitepaper also used a much smaller font.
Tips To Avoid Investing in Cryptocurrency Projects That Will Fail
Here are some basic tips that you can use to avoid investing in cryptocurrency projects doomed for failure.
Many investors make the mistake of not reading the whitepaper of a cryptocurrency project. They think it will be far too technical or difficult to read.
That’s sometimes the case, but not always. Whitepapers tend to be much easier to read than the more technical oriented yellow paper.
A whitepaper should demonstrate the problem and show a brief technical overview of the solution.
Technical projects like Pollux that have a whitepaper that’s mostly covering the problem, one paragraph about the solution, and more talk about the problem are awful. It usually indicates that the whitepaper was written by someone that does not know the technology, which is a bad sign.
Poor Grammar and Spelling
We know that not everyone is a native English speaker, but that’s no excuse for having a poorly written whitepaper and/or website.
Editors are not very expensive.
If a whitepaper has basic misspellings (ie. lose vs loose) and easy grammar mistakes (ie. missing periods), then that shows the company did not pay the $100 or $200 to hire an editor to proofread the writing.
It’s a bad sign.
A company that isn’t willing to spend a few hundred dollars to ensure that what they are showing the public is high quality is probably cutting corners behind the scenes as well.
Low Quality Web Design
This falls into a similar category as the above tip. If you have a poor web design and basic website, then that’s a bad sign.
It’s not so much that your project needs a good website to succeed. It just shows that you will not spend the time, effort, and money to project a good brand image.
Why should I invest $25,000 into the project if you refuse to invest a few thousand dollars to make your website look presentable?
We cannot think of a single popular cryptocurrency that has a poor website or one that lacks information. But we can think of a lot of dead cryptocurrencies that offer little to no information.
Note: A good website does not indicate a good project. But a bad website generally indicates a bad project.
A common sign a project will fail is that it makes enormous promises to attract clueless investors to the project. The most popular one is usually something about replacing Bitcoin or creating a global payment solution.
Both of those are enormous tasks – Bitcoin is the most popular cryptocurrency by a wide margin and the banking system works just fine. A project better have a solid whitepaper, a solid team, and a good roadmap to convince a wise investor about its success.
Basic grammar mistakes, misspellings, and poor web design are not going to reassure wise investors that the leadership can take on the banking system.
Basically, projects that make big promises generally do so because they do not have anything concrete to show at the moment. The plan usually involves selling a vision of the future. Ironically, most of the projects that make big promises are the ones that have the smallest chance of actually following through with the promise.
That really sums it up for Pollux Coin. It’s an almost dead project that was pretty much doomed from failure from the start. A terrible website, useless whitepaper, launching on Tron, and poor marketing all hurt this project, if it even had any plans to become a big project.