When I joined the cryptocurrency business, during my training days I was made to understand that I should do proper research on any project I want to ape into, to avoid loss of assets or what we all know as rug pull. I grew up in this world with this ideology which has kept me away from making fewer mistakes in the area of investing in a project but recently I can across what I see as the new trend in the crypto world. I hear people classifying these projects as shit coins. What baffles me is the way and manner people ape into these projects even as they call it shit coins and I have come to understand that those who ape into these projects are not armatures in the crypto sphere yet they still venture into them. This has given rise to this question; why and what should make someone who understands how cryptocurrency works ape into some shitty project?
OR
Is it because they wish to lose their hard-earned money?
I guess no sane businessman would intentionally want to lose his money over some investment he already knows that its future look bleak. Therefore, I have been trying to understand the rationale behind all these shit coin frenzies which have gradually penetrated the crypto sphere. If truly these coins are shitty just like the way we say they are, why then do we see people aping? The answer to this question is what I want us to look at in this article and I believe that a whole lot of others in this platform are either aping in on shit coins or are as confused as I am.
What is a shit coin?
I have been looking at most of these so-called shit coin to understand why and what makes them shit coin. The truth is that I have noticed that most of them do not have a face, market cap, use case and their total supply usually run into billions, trillions and even quadrillions. This is the major reason why you will an address holding over 200 billion of such project. It is very funny each time I see such a thing because it makes me wonder how such a project can stand the test of time. We all know that scarcity brings about an increase in demand and this makes the price of such a commodity increase in price. Now, if a project has over 500 trillion in total supply, how then will such a project gain the desired increase in price?
I also found out that a whole lot of these projects are now becoming deflationary in the sense that a percentage of it is distributed to the holders whenever trading occurs (be it buying or selling). I noticed that some of them have automatic burn algorithm which occurs either everyday or in specified pattern as a way to reduce the surplus in total supply. This makes me wonder, why a project developer would allow his total supply to run into billions, trillions or even quadrillions to burn it automatically when he could have reduced the total supply from the beginning. I believe that if a project starts with a lesser quantity, it will affect its price within a short period and in that way, there may not be a need to have a steady burn occurring automatically.
Mode of Publicity
I have been carefully watching and following some of these so-called shit coins and I observed that most of them go to the extent of paying social media influencers on Instagram, Twitter, Facebook or TikTok to either make a video or write about them in a bid to create social media traffic for their project. This makes me wonder, why should someone who probably those not have any interest in a project tweet or make a promotional video for such a project that they know has no plan for its adopters. Of course, I know they are doing that because they have been paid to do so and this is why most of these projects will only exist for a short period and boom! It’s all gone. The pertinent question to ask is; do people understand what is at stake whenever they ape into shitty projects?
Why do people ape into shitty projects?
There is this frenzy when someone tells a friend about how he turned his $10 or $20 to $700 or even a thousand dollars just by buying and dumping on the shit coin. It creates this FOMO on the side of the person who is yet to benefit but to those who have understood how shit coins work, they will always ape in because to them, it gives them quick returns. It is no hidden knowledge that most shit coins pump within the shortest period and this makes it look like a lucrative business, the question to ask is this; who suffers the loss? I found out that when these projects are launched, those who bought early will help the developer to spread the message of the lunch and by so doing attract more buyers. This system is very dicey because for someone who is just aping in not knowing that the project has been launched for more than 2 or 3 weeks, they will make the mistake of buying the pump and this will give those early adaptors the leverage to dump on them. In my opinion, I will advise you to carefully research thoroughly about any project especially once it has the characteristics of a shit coin to avoid taken the loss.
Shit coin a good investment
WARNING: This is not business or financial advice of any kind, be warned.
A lot of people have made good profits from dealing on shit coins because it is more like a short term investment plan. You and I know that any business with a short term investment plan most times have a higher percentage risk. This is the reason why you must be ready to invest that which you can be able to endure in case of any loss. The only thing I have noticed that makes it hard for people to take profit as at when due is greed. If you wish to survive in this shit coin business, you must remove greed from your heart otherwise you will be heading to your doom. Always make sure that you are following the social media handle of any project you ape into, in that way you will not be taken unawares.
Remember this is not financial or business advice, trade at your own risk.
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