Crypto Academy

What is Shitcoin?

Shitcoin

4 min reading

You’ve heard about shitcoins and are curious about it? Let’s find out what about it

What_s shitcoin

What is Shitcoin?

First of all, ShitCoins are coins with low capitalization and completely unclear prospects. In general, this is considered a pejorative term that is used to describe a cryptocurrency that has become useless. It is a cryptocurrency with no purpose, value, or future. Despite the lack of technological innovation, shitcoins appear almost every day. Some people call them cryptocurrencies, others say that they are altcoins or altos. And of course, they have their advantages – fast transaction speed and lower rates, but they do not have recognition and a memorable name. Without it, they are doomed. Then why are they quite popular?

ShitCoins: who needs them and why?

Some believe that shitcoins are in no demand among users, then let’s present some examples: the coin “Useless Ethereum Token” collected about 40 thousand dollars at the ICO in 3 days, but the FUCK token – 30 thousand dollars in half an hour. Of course, not all shitcoins achieve such success, but there are exceptions. Some experts believe that cryptocurrencies lead to situations where people lose their sense of value.

Some people are not afraid to just take and send a few tens or hundreds of dollars to the ICO, which are not in their pocket or in a bank account but are transferred to cryptocurrencies. Therefore, users can not hesitate to spend their digital funds to support comic projects. People create their coins as an experiment, for it brought them further income.

Shitcoin History

There is a huge amount of ShitCoins, even counting them will be very difficult. Some coins are famous only by their creators and the owners of the platforms on which they were created (but this is not accurate!). Shitcoins appeared after the first Bitcoin cryptocurrency creation. Today, there are people who use various “generators”, for example, Forkgen, and keep creating their own useless cryptocurrencies. Therefore, such tokens as PotCoin – coins for buying marijuana products and Dirty Coin – a coin for paying for export services appeared on the market. Important to know that the list of crypto-currencies is updating every day with the development of the industry.

Let’s talk about where the word Shitcoin came from. The first time the word “Shitcoin” appeared on the BitcoinTalk forum was back in 2010. One user wrote an article about cryptocurrency and this word was first used. Since then, it has been a hot topic in the crypto-currency community, but the author of the term and the history of its origin are still unknown.

How to identify shitcoin

Here are some tips on how to spot shitcoins and how to avoid problems in the future. The first sign might be when you visit a project you like, check the saving history and if there are infrequent updates and the last save was two months ago – you are facing a bad coin. If the coin only offers a store of value and has no integration with important sites where you can buy something with it, then it’s a bad coin too. If the coin’s code is a fork of another coin with no significant tweaks or changes in functionality, it’s a bad coin. If the project has a fancy website with the words “Decentralised” or “Dependable” on it, it’s very likely a bad coin. If the project doesn’t have a development team or a group of individual developers, or if the team is anonymous at all, it’s very likely a bad coin. If you find all or most of these signs, sell them now. Such coins have no value and will soon be forgotten.

Conclusion

However, during the crypto-currencies development, a huge number of useless and forgotten coins have been formed. It is also worth noting that new tokens are launched every day, and it is not an easy deal to determine which one will bring profit since more than 8,000 crypto-assets exist today. Only a detailed analysis and independent search for promising projects facilitate avoiding a “promising asset with low liquidity”.

Conclusions