Virtual Currencies That Failed
With the advent of Bitcoins,the race to create a successful virtual currency has occupied the minds of digital gold miners. Bitcoins are considered the smartest and the most mysterious virtual currency as yet due to its anonymous roots. Other e-currencies have come,seen but failed to conquer either by losing its source of credibility or facing the brunt of legal actions with the government.
Stated below are 6 virtual currencies that couldn’t deliver in the digital world and 3 more that are still under the scanner to gain the status of being an approved currency.
Beenz started in the year 1998 and saw an early end to its status in 2001.Although ,it succeeded at creating a global online couponing and raised around $100 million from big wig investors and boasting about clients like Oracle to Gucci. It fell flat due to lack of loyalty to its coupons as virtual currency by e-commerce sites even though it was capable of monetizing the evolving Internet economy.
Flooz came up in the year 1999 and exited in two years straight in 2001.Even though it had favorable outcomes at creating a virtual currency that could be redeemed at a number of sites as well as celebrities in ads that got audiences hooked,it enticed hackers and cyber criminals to loot coupons worth thousands of dollars. Also,It bore the brunt of merchants as it couldn’t guarantee secure technological backing
Internetcash.com was conceived in the year 1999 and continued until 2001.Its accomplished getting parents on its side by initiating a Internet payment system that was secure due to personal identification numbers. Web-based electronic that could verify transactions without the need to produce your credit card was also another feather in its hat. But with the fall of the dot-com ,it suffered a similar fate.
E-gold started in the year 1996 but saw an abrupt end in 2009 only to be relaunched again in 2011.E-Gold rose to success by creating a market space globally for digital gold currency with a strong backing of 5 million account holders as well as acceptance by gold stores as virtual currency. What led to its failure were fraudulent activities by transferring money. Also,the company faced charges on money-laundering which the directors got out of with a plea bargain.
Succeeded at: creating a cryptographic digital currency that allowed anonymous money transactions. It won partnerships with major European banks and created some of the seminal technology still used for encrypting digital transactions.
Failed at: holding its original customers who wanted anonymity not allowed by the banking partnerships, which required named account holders. It declared bankruptcy in 1998.
Succeeded at: building a payment system that was eventually acquired by a predecessor to Paypal. CyberCash made a splash with a $300 million public offering that jumped 79 percent on its first trading day at the peak of the dot-com boom.
Failed at: creating a micro-payment virtual currency. It lost millions of dollars as it tried to market itself as an anonymous payments alternative to credit cards, and fell victim to the Y2K bug and other technical problems. It filed for bankruptcy in 2001 and its transactions business was sold to e-commerce enabler Verisign, which was later sold to PayPal.
The jury’s still out on these e-currencies.
Succeeded at: luring a top PayPal executive and scaring the Beenz out of the rest of the digital-money payment companies. Many of Facebook’s game apps are using the credits for some $1 billion-plus of in-game revenue.
Failed at: creating a currency with wider application beyond games. Facebook recently altered the program so apps can be bought in local currencies, but denied it is pulling the plug on the plan.
Succeeded at: creating excitement as one of the biggest players in both retail and cloud services enters digital payments. Kindle owners will be given millions of credits to launch the program. The Amazon coins will be usable for purchasing Kindle apps.
Not failing at anything yet. But not promising much.
Succeeded at: creating an encrypted cyber-currency for anonymous transactions not dependent on any government. The buzz it created raised concerns that bitcoins would be used for money laundering. A new federal regulation will require Bitcoin to report cross-border transactions of more than $10,000 as other financial institutions are required to do.
Failed at: remaining truly anonymous.