Key takeaways
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Crypto investigator ZachXBT criticized Token2049 for poor sponsor vetting, warning that platinum sponsorships don’t equate to legitimacy. Several sponsors he flagged turned out to have shady records.
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JPEX and HyperVerse used event sponsorships to project credibility. Both later collapsed under fraud investigations, causing billions in investor losses and arrests.
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Red flags include anonymous teams, low liquidity, overhyped marketing, poor tokenomics and listings only on obscure exchanges.
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What drives these coins isn’t innovation but speculation, influencer buzz and cult-like followings, highlighting how unpredictability fuels their survival.
In the unpredictable cryptocurrency market, certain digital assets continue to exist despite facing controversies, significant price drops or lacking substantial underlying value. Though flagged as shady coins, they continue drawing considerable interest from dedicated followers. This sustained engagement is often driven by speculative excitement, strong community support and the allure of rapid profits.
ZachXBT, a well-known crypto sleuth, made some observations via his Telegram channel on a few sponsors of Token2049, a major crypto event. He felt the organizers of such events do little due diligence on their sponsors and that a project being a platinum sponsor doesn’t increase credibility. He went on posting on his channel about sketchy Token2049 sponsors.
This article explores why some coins demonstrate a remarkable persistence despite being sketchy. It discusses five shady coins that continue drawing crypto investors and investigates the reasons for their longevity. It will also explain how newbie traders can protect themselves from such projects.
Why shady coins survive despite the odds
Despite weak fundamentals, many questionable cryptocurrencies persist in the market. While most fail quickly, some survive or briefly thrive due to specific factors. These include:
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Speculative trading: Sharp price fluctuations attract risk-tolerant traders seeking quick profits.
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Dedicated communities: Loyal supporters, often driven by memes or nostalgia, keep these projects alive.
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Low market liquidity: Limited trading activity allows large investors or insiders to influence prices, drawing in speculators.
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Periodic hype: Social media trends, influencer endorsements or unexpected news can temporarily boost interest in these coins.
Did you know? From “1,000x guaranteed returns” to “satellite-powered DeFi,” scammy projects often use flashy narratives to hook traders. When the claims are bold without evidence, coins are likely to be sketchy.
5 shady coins refusing to die
ZachXBT discussed a few sponsors of TOKEN2049, which persist within the unpredictable crypto market despite opaque operations. He mentioned the following coins as sketchy:
Spacecoin (SPACE)
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Origin: Launched by Gluwa in 2024-2025 and the title sponsor of Token2049, Spacecoin aims to be the world’s first decentralized physical infrastructure network (DePIN) powered by satellites. It claims its decentralized satellite network will provide global 5G internet to the 2.9 billion people who currently lack access, to connect the entire world.
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Controversies: Onchain investigator ZachXBT labeled Spacecoin as “botted” and unreliable, questioning its legitimacy. While botted can be interpreted in many ways, none of the meanings is flattering.
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Why questionable: There are concerns surrounding Spacecoin. For example, in June 2022, it claimed to have undergone several months of refinement and smart contract auditing, without naming a specific audit firm, and no public report was provided. Moreover, there is no verifiable documentation regarding the launch of satellites.
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What sustains it: Strong promotional efforts, event sponsorships and speculative interest, along with a dedicated community and media attention, keep limited trading activity alive.
JuCoin
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Origin: JuCoin, previously Jubi, is a Singapore-based cryptocurrency exchange established in 2013, with its JU token and CeDeFi services expanding its ecosystem by 2025.
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Controversies: ZachXBT flagged JuCoin as a “sketchy” platinum sponsor of Token2049, citing a history of ownership changes, rebrands and regulatory pivots.
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Why questionable: JuCoin lacks regulation in major markets, though it has applied for a license in Taiwan. The project is not regulated in the US, EU or other major markets having robust regulatory standards, apart from Singapore’s Monetary Authority.
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What sustains it: Speculation around the token and an aggressive marketing drive for trading activity.
Weex
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Origin: Weex is a Singapore-registered crypto futures platform operating since 2018 and offering anonymous trading and bonus incentives.
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Controversies: Weex is not regulated by any financial authority with strict standards.
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Why questionable: There have been social media posts complaining of unusual behavior on the exchange, including frozen accounts and unexpected Know Your Customer (KYC)…
cointelegraph.com