Ever since the rise in popularity of blockchain and Bitcoin, a growing number of coins have entered the market & today an unprecedented 10,000+ cryptocurrencies exist. With a total market cap of over $2 trillion US dollars, this industry is too big to ignore for any new investor looking to diversify beyond stocks and other traditional financial assets.
Having said that, some other cryptocurrencies with little or no value were also created at the very same time by people who wanted to cash in the opportunity. Being an unregulated market, these coins operate without any check by the regulators.
Therefore, readers of this article should be able to put a filter while sorting projects to separate meme coins/shitcoins after going through the list of projects which we’ve picked for this article.
Also, as an added bonus we’ve explained why did we flag a particular project as a Shitcoin with valid reasons from our side.
What Is Shitcoin?
This is a hard to define term since plenty of projects are out there with a variety of utilities, & are trying to solve problems in Web 3.0 or defi space. To keep things simple, one can define a Shitcoin as a cryptocurrency with little or no value. A digital currency without any particular purpose/model.
The term ‘Shitcoin’ is often used in parallel with altcoins to define projects that were created after the Bitcoin network but on a quick side note, all Altcoins aren’t Shitcoins but the reverse is true.
- The value attached with a Shitcoin is often linked to a hype or interest created among the investors out of speculation. The intrinsic value of any Altcoin can be correlated with the valuation of any project, use-case, roadmap, products, etc but in-case of a Shitcoin, there’s no such thing as a project.
- Shitcoins can be characterised by the short term price boom followed by a sharp nosedive in the valuation, you guessed it right! In financial markets, they are called as a pump & dump scheme.
- The whales behind a Shitcoin keep accumulating the token over long distributed phases & dump them all at once on the investors who FOMO into the hype. Yes, that’s very illegal in financial markets, but in case of an un-regulated space, you can’t do anything about it.
The Shitcoin Floki was launched in June this year. Inspired by Elon Musk’s new pet dog named Floki. Today it ranks below 2800 on CoinMarketCap and has fallen by almost -50% since its all-time high.
This project is admired mainly by the community of Shiba Inu and Dogecoin. On the project itself, high claims are being made by the team. They claim to be working on a flagship NFT gaming metaverse called Valhalla, a merchandise place & educational content platform called Floki Inuversity.
However, on the flip side, they have partnered with mainstream football clubs including SSC Napoli, Cádiz CF, Kerala Blasters, and FC Goa to gain mainstream attention & have worked with Garden Movements to solve food insecurity issues.
The coin primarily derived its value from Elon Musk’s tweets and nonetheless, it failed to keep up the price that followed the hype.
SafeMoon Protocol is a Defi token. Just like Floki Inu, they are planning to build an NFT exchange and charity projects along with educational apps. With SafeMoon protocol, token holders earn even more SafeMoon tokens with up to 80% APY.
They don’t have any specific roadmap or revenue model. All they say is that by end of 2021 they will have a DEX and more partnerships. It ranks 223 on CoinMarketCap and is down by almost -60% from its all-time high.
This cryptocurrency made news due to celebrity associations, who called it “Safely to the Moon”. That tagline doesn’t match what the project is worth in reality.
Today it is, even more, riskier to invest in SafeMoon because of low liquidity on exchanges. The trading volume is just around $7 million dollars on Gate.io in the last 24 hours. That could make it hard to cash out in case of a bear market panic sell.
Created as a meme from the popular “doge” featuring a Shiba Inu as its logo, this open-source currency is down by almost -75% from its all-time high price.
Initially, it was created just as fun by its founders Billy Markus & Jackson Palmer as a Litecoin fork. Thanks to several tweets by Elon Musk, this meme coin became widely known globally.
Why I say it’s a SCAM !
Visit this website called as BitInfoCharts to see what’s wrong with this coin. I’ll make your job easy, look at this one.
As you can see, over 90% of the supply of DogeCoin is controlled by the last few wallets. And that one guy who has 28% of the supply can dump his coins anytime and become an instant billionaire this year. Now, you’ll say what if Satoshi dumps all his Bitcoins won’t the same happen?
See, if Satoshi were to dump all his 1 million Bitcoins, the price of Bitcoin would tank for sure but would he do that to get more Fiat Money? I mean the first block of bitcoin had this written in it, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.
But Dogecoin was born out of a meme. You get it right? I agree there’s a chance of Satoshi dumping all the world of billions but think about Dogecoin. It’s probably the biggest scam out there but people are buying onto it.
Before we end this discussion …
Apart from these three coins, probably there are 1000s of projects who claim to be the next big thing in every other utility.
Stablecoins, ones with the highest daily trading volumes have many new players who claim to existing fix problems with Tether by launching their own dollar-pegged coin. They try to twist and turn words just to convince you of their idea. Usually, they aren’t fully pegged to the dollar but have a portion of backing with a random “XYZ” token. That’s just a part of the entire story.
NFT platforms already exist both in form of Decentralised marketplaces and Centralised marketplaces. We already have market leaders in the segments, yet people find many new projects counting their NFT platform as a utility for the upcoming flagship ICO.
Just a simple rule to keep in mind before investing in any project. Never invest in something that we don’t understand fully. If one can’t explain it to someone else, that means they should stay away from it. This thumb rule applies everywhere from stocks to crypto.