The Good, the Bad and the Shitcoins

You have probably heard about the joke in Cryptocurrencies, simply put, these are Shitcoins. They are highly speculative, volatile and risky. Usually, these coins make their way into the market as parodies created by anonymous developers to poke fun at the Crypto space. Some are built on their Blockchains, while others are tokens on existing Blockchains like Ethereum.

What makes Shitcoin stand out is that it has no real purpose or value. It’s not solving any problems or powering a platform. Shitcoins are created as a joke or scam to generate hype and make money from speculation. Developers create a Shitcoin, hype it up and wait for the price to pump, then often disappear with investors’ money.

The volatility and hype around Shitcoins mean huge price swings. Some investors have made serious money buying early and selling at the right time. Yet, many have ended up losing money when the hype dies down and the eventual price crashes. 

Types of Shitcoins

Shitcoins come in all shapes and sizes. While others are just poorly thought-out concepts with no real potential, some are outright scams. 

Pump and Dumps

These coins are hyped up to drive the price up and then the developers and early investors dump their coins for a profit. This leaves the rest gullible investors holding worthless bags. You’ll often see these coins heavily marketed on social media, promising huge gains. Sadly, by the time you buy in, the dump has already begun.

Meme Coins

They are based on internet jokes, memes and viral sensations. They have no real purpose, just trying to cash in on the hype. The prime example is Dogecoin, originally based on the Shiba Inu meme and affiliated with billionaire Elon Musk. Despite some surprise success, most meme coins end up worthless.

ICO Scams

During the ICO boom, lots of scam coins appeared. Developers would scheme a promised concept, take investors’ money in the ICO and then disappear without ever creating a real product. So much for outright frauds with intent to steal money.

Ostensibly, Shitcoins is a risky affair. While a few may surge in price due to hype and luck, the vast majority end up worthless. For every Dogecoin success story, there are hundreds of failed Shitcoins left in the dust. 

Unless you plan to invest money you can afford to lose, Shitcoins are best avoided. Better still, if you are good at speculating and have much appetite for risk, research widely, invest wisely and get out quickly with any profits before the dump begins.

Pros and Cons of Investing in Shitcoins

First and foremost, Shitcoins are highly volatile. This means their prices can swing wildly up and down in no time. While this poses a risk, it also means the potential for huge gains if you buy at the right time. Some shitcoins have seen 1,000% increases in a short period. If you have the stomach for volatility, the rewards might be worth it.

Shitcoins are usually affordable, sometimes less than a quid for each coin. This means you can buy a large amount for little money in the initial acquisition. If the value does skyrocket, even a small investment could lead to big profits. The affordability also allows more people to get into the Crypto market and possibly make money.

The major downside is that Shitcoins are highly risky and unpredictable. Prices are often based more on hype and speculation than the actual value or use of the coin. This means your investment could rise significantly or go to zero at any time. 

Additionally, most Shitcoins are not accepted as payment methods and have little real-world utility. They are not solving any actual problems or providing value to users which makes their prices very speculative.

Some indicators that a Cryptocurrency may be a shitcoin include: 

  • Anonymous teams. 
  • Unrealistic promises. 
  • Paid celebrity endorsements. 
  • Fake partnerships.
  • Too-good-to-be-true returns.
  • Poor website/whitepaper quality. 

If something sounds too good to be true in Crypto, it usually is.

While the Crypto world contains some gems, it also contains a lot of worthless junk. Be cautious and do your research before investing in any digital asset. And when in doubt, it’s best to avoid it because when it comes to Shitcoins, the only ones making money are their shady developers.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.