6 things that makes a Coin Auction Platform Collapse. In this article, I will share my analysis on what makes the coin platforms collapse or crash. From backlogs, duplicate bids, technical glitches to greed. I could be wrong on this, but that’s my observation. You may also add your thoughts under comment section after reading this piece.
Here are the 6 things that makes a coin auction platform to crash.
Once a platform have more supply than demand, the platform will collapse. If a platform stops gaining new members or buyers and the coins are multiplying day by day, the platforms suffers. I have not been following GCC but I think this is how they collapsed, they ended in tears. This was their favorite line when they were spamming other people’s groups. And this is what MCA and Liberty Coin Auction are facing as we speak now, backlogs. Watch a video below to see how backlog affected My Coin Auction.
- Duplicate bids
Some platforms collapse because of the error in coin generation on the platform. If the platform is not programmed well, sometimes it can allow bids duplicates or even 5 duplicates of same bid. For example, if 5 people were competing for the same lot, the system might allow all 5 people to get successful on their bids. That means coins have been expanded 5 times. If these people were successful on a bid for 5000, it means the platform will end up with 20 000 extra coins that were not planned for. But one person will be paid 5 times for an amount he was supposed to get once. That is how Dynasty coins died.
- Ghost accounts
Because people are looking to generate bonuses, they might join the platform with two accounts. One will be the recruiter, the other will be a downliner. So, they might just use the downliner as a bidding account while the upliner just generate bonuses and makes withdrawals.
- Technical glitches
People are always observing the platforms. Once a platform experiences a technical glitch, they stand back and see if others are gonna act. If no action taken, it is the end of the platform. That’s how Bidcoin died. They experienced a technical glitch on the morning session where an auction did not open on time. It opened 3 minutes late. Coins were sold out on that session but the next session there were no buyers anymore.
A platform that is not so secured run a risk of being a prey of the hackers. Sometimes inside conflicts may result in system disruptions by the developers as they disagree here and there. That’s how Flip Coin Bidding died. They claimed that they have been hacked but rumors has it that they were in disagreements and those who left the platform disrupted the flow of things and the platform was laid to rest.
Some platforms are just created to boost the pockets of the owners. They may start with only 10 000 coins and 3 days later, the jumped to 100 000 while they are supposed to be growing by 30% in 24 hours. That means, the system owners are adding more coins on the platform than those generated by the maturity of those bought by the users. That’s how Royalty Auction died. Here is another Coin Auction Platform called Sisonke Coin Auction.