Shitcoin is a slang term for cryptocurrencies that serve no particular purpose. There are also many popular cryptocurrencies that fall into the shitcoin category, although it creates a perception of expression that defines out-of-the-box coins. Therefore, the units that can be counted in this coin type, which leads to debates about whether it is a good investment or not, are wondered by investors.
What is Shitcoin?
Shitcoin is a common pejorative term used to describe cryptocurrencies that have not been issued for an obvious purpose. While this term is best used for non-value coins, it can also be attributed to any cryptocurrency based on personal opinion.
Crypto assets that can be counted in the term can be a copy of another popular coin or they can be on the market as a product of a stand-alone project. At this point, there is no defined definition with sharp lines.
How Shitcoins Work
Whether Shitcoins have a separate working method that separates them from other cryptocurrencies is among the researched topics. The way crypto assets work has been particularly interesting since the launch and development of Bitcoin. Because the success of blockchain technology has brought projects to produce their own crypto assets. Therefore, understanding the advantages that any coin can offer requires adopting the way that coin works.
While cryptocurrencies are released, many have a limited supply limit. Investors know that the supply of a coin will become limited after a certain point. Issuing more tokens than originally promised will reduce the value of investor assets. When the supply of a cryptocurrency is fixed, its value must depend on demand.
Because Shitcoins serve no obvious and meaningful purpose, there is often no real demand for the token. The value of the token is entirely dependent on speculation. Shitcoins are digital currencies that people believe are valuable simply because they exist. Therefore, they do not have a specific working principle.
What Are Shitcoin Features?
Determining if a cryptocurrency is shitcoin is easy. In addition to this, in order to make the definition, the coin must have certain characteristics. A token is greeted with interest when first released, but has the potential to become a shitcoin if it:
- low market value
- Does not serve a defined purpose
- Rapid fall and rise in prices
A shitcoin, on the other hand, is easier to spot when looking at its background development and related project (if any).
- Is the project a copy of an already known cryptocurrency platform?
- Does the project have an associated whitepaper?
- Was the whitepaper copied from a different project?
If controversial answers are given to any of the above questions, there is a good chance that the cryptocurrency is shitcoin.
Is Dogecoin Shitcoin?
We mentioned that many popular cryptocurrencies can also be included in the shitcoin category. When the coins that fit the definition of this term and do not serve any specific purpose are examined, it is seen that DOGE is also included in the list. Dogecoin is a shitcoin . Because DOGE, which is a meme coin when its starting point is examined, was not actually released for an obvious purpose, on the contrary, it continues to exist for the purpose of joke. If there is a purpose, it is to refer to the funny-looking Shiba Inu dog that has gained wide popularity on the internet. Therefore, it cannot be said that this situation provides any benefit.
Where to Buy Shitcoin?
Shitcoins are extremely subjective. Any altcoin can be declared as “shitcoin”; therefore, it is difficult to give specific directions as to where they can be purchased.
Most have a small market cap and therefore are not as common on larger cryptocurrency exchanges like Binance or Coinbase. For a coin to be listed on a cryptocurrency exchange, it must go through an extensive procedure. However, very few shitcoins in the market seem to be subject to this procedure.
Alternatively, lower market cap coins can be acquired through a decentralized exchange (DEX) with no restrictions on listing.
Is Shitcoin a Good Investment?
Shitcoins are generally not very good investments, require great risk and rarely offer rewards. The majority follow bottom and top plans where only a few “insiders” truly understand price dynamics. After a bearish bullish plan with no real value, other investors are left with worthless cryptocurrencies. It cannot be denied that small-volume altcoins can deliver high returns, but this nurtures investors who really know what they are doing. So it is important to be able to take the right steps at the right time. Because an investor is likely to lose all of their initial investment.
Which Shitcoin Examples?
Some of the popular Shitcoins in the cryptocurrency market, albeit subjectively, include:
- Dogecoin (DOGE): It is a meme-based cryptocurrency designed around a funny picture of a Shiba Inu dog named Doge. A large part of Coin’s success has been the result of encouragement from influencers.
- BitTorrent (BTT): BTT is a coin built around the file sharing platform BitTorrent. The fact that the platform is currently operating without any tokens has led many to place BTT in the “shitcoin” category. The coin supply is 1 trillion units.
- Dent (DENT): DENT is a cryptocurrency used to buy mobile phone packages. However, many people believe that the application does not require blockchain technology and actually works better without it. It is seen by many as a way to “make money” from cryptocurrency success.
- Shibu Inu (SHIB): Following the success of Dogecoin, SHIB was developed as a token named after the Shiba Inu dog breed. It serves no purpose and is not associated with any blockchain or decentralized application. The maximum coin supply is set at 1 quadrillion.
The coins on the list are the assets most commonly referred to with the name Shitcoin. Let us reiterate that subjectivity is at the forefront and for this reason, there are frequent discussions. An asset that one investor likes may be called Shitcoin by another investor.
