Shitcoins- A Degen's game!

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3 years ago

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These days, the term 'shitcoin' is actually nothing really new to the ear. I mean, you ever think getting a x10, x100, or even x1000 of your initial capital was a joke? haha...wait till you get invested in a shit coin and get very lucky. However, to where exactly does this even lead? Let's get started!


INTRODUCTION

For a start, the basic meaning of a 'shitcoin' describes any particular cryptocurrency (altcoin) with little to no value or a digital currency that has no immediate, discernible utility/ use case. Yeah, most shit coins are created just for the fun of it.

ORIGIN OF SHIT COINS

Actually, the conception of the idea and origin of shitcoins could actually be dated as far back as after Bitcoin started to become quite popular with Dogecoin being among the initial shitcoins.

Dogecoin, usually known as DOGE could be regarded as just a meme coin/ shitcoin that was created in 2013 as a fork from Litecoin. It is based on the popular "Doge" Internet meme and features a Shiba Inu on its logo.

Dogecoin's creators envisaged it as a fun, light-hearted cryptocurrency that would have greater appeal beyond the core Bitcoin audience since it was based on a dog meme.

Image source: kninevox.com

BASIC WAYS TO IDENTIFY A SHIT COIN

Shit coins generally have certain characteristics that make them kinda easy to spot. These characteristics could include;

  • Very large total and circulating supply

  • Most times, usually no genuine utility, use case, or purpose

  • No lucid development team- in some cases

  • Too-good-to-be-true claims (exaggerated claims)

  • Usual 'pump' and 'dump' price pattern

All these characteristics are just to mention a few though...


THINGS TO NOTE

Most shit coins as stated earlier, do not really have clearly defined causes of use. Most of them as a matter of fact, basically just derive value and price increases when people get interested and there is a large influx of buys.

As we have it these days, In the case of Dogecoin... Multi-Billionaire Elon Musk suddenly shed a massive spotlight on the meme coin earlier this year 2021. This lead to a huge spike in the price of the cryptocurrency and a whole lot of people got really interested. Of course, Dogecoin broke to crazily new All-time-highs.

This aside, following the price explosion of Dogecoin, the development of newer shit coin projects especially facilitated by the advent of DEFI(Decentralised Finance) was encouraged. Speaking of the likes of Shiba Inu, Akita Inu, Safemoon, Kishu Inu among many other popular ones just to name a few.

It can be said that a lot of people actually made crazy amounts of dollars from multiple x10's, x100's, and the likes! I mean, well played, Degen!


THE GAME OF SHITCOINS

Image source: Insider

While shitcoins might seem as being total jokes, they could actually tend to bring in nice ROIs. That being said, the fact that shitcoins could also wreck you, ruin your entire portfolio, or rid you of a good portion of your fortune cannot be left out!

The understanding of this could put you at a good advantage as it can help you to manage your risk well. You basically have to know when to get in and just when to get out!

A mistake most people make that actually makes them lose a lot of money to shitcoins is not at least doing some form of thorough price research before putting money in. They thus, end of 'buying the top' and either turning bag holders or getting totally rekt.

However, on the other hand, some people still end up bagging a whole fortune.


CLOSING THOUGHTS

Actually, over time, some crypto projects that actually started out as being just shitcoins are starting to come up with viable use cases, yeah this can be pointed out as actually being good steps taken. Anyway, at this point, there's really not much advice to give though. By basic idea, investing in cryptocurrencies generally, is a risk. But, investing in shitcoins can be seen as an even greater risk.

Thank you for taking your time to read this, kindly let me know your thoughts in the comments! :)

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