What is Alpha5 (A5T)?

The cryptocurrency industry has new projects emerging on a near daily basis. The overwhelming majority of these projects are some sort of scam or projects that simply have no hope of ever becoming successful. 

One such project was called Alpha5 (A5T). This project launched sometime around December 2020 and almost immediately saw a tremendous spike in the price before quickly dropping. The website went offline shortly after the price drop and the founders disappeared with investor money. 

Now, there is not much information available online about this project, but it appears that the founders were raising money to launch some sort of crypto derivatives exchange. This article will focus on some of the issues this project had and cover why this project has seen a sudden jump in popularity. 

What was Alpha5?

Alpha5 was a crypto derivatives exchange launched in December 2020. The project billed itself as the first and only crypto native exchange that had an implied order book. This is not particularly impressive, but the founders likely needed something to make the project sound exciting. 

In reality, it appears that Alpha5 was nothing more than a scam exchange. It likely did not have an orderbook at all and simply collected investor money with no intention of allowing investors to trade any crypto. 

Why is Alpha5 Trending?

Alpha5 has begun trending on Twitter for seemingly no reason. It appears that bots on the social media site have started adding an Alpha5 hashtag to tweets promoting other crypto projects. 

It’s unusual behavior and may or may not have anything to do with the original Alpha5 exchange. With that said, any project associated with the Alpha5 hashtag should be looked at with extreme prejudice – why would a legitimate project promote themselves alongside a known scam exchange? 

The Red Flags with Alpha5

Alpha5 had a lot of red flags that likely tipped off experienced investors that the project was a scam. These red flags include the following:

Anonymous Founders

The first red flag is that the project had anonymous founders. The usual disclaimer applies – not all crypto projects with anonymous founders are scams nor are all crypto projects with doxxed founders legitimate. For instance, QuadrigaCX was Canada’s largest crypto exchange at one point and had a fully doxxed founder that allegedly died (he possibly faked his own death) right before the exchange collapsed.

That said, a crypto exchange with anonymous founders is almost always a scam. 

Most Crypto Derivatives Exchanges are Scams

The next point relates to the crypto derivatives industry itself. Most of the exchanges are scams. 

Of course, there are legitimate ones out there. But they have institutional investors and a solid track record of success. They aren’t fly by night exchanges created by anonymous founders. 

Is Alpha5 a Good Investment?

Alpha5 still exists and can be purchased on exchanges like Gate.io. It’s not a token you should ever purchase, though. The website does not even work, which is obviously a terrible sign. 

The price chart also looks like this:

That’s not the price chart of a coin worthy of an investment. There is a 0% chance the price ever reaches the previous all-time high. 

Further cementing this point is the fact that the 24 hour trading volume is in the three digits. This really is not a coin worthy of an investment in our opinion. It’s a small miracle that this project even receives any attention considering it has not existed for years. 

Final Thoughts

To wrap things up, Alpha5 was a crypto derivatives exchange that was a scam. The project crashed almost immediately after launch and the team was never heard from again. It receives some mention on social media from bot accounts, but the project is almost entirely irrelevant at this point. There are far better crypto exchanges out there than ones like Alpha5.