Ok, I know this is a weird thing to ask, but what is a Shitcoin? That’s a thing now. So, this question has been on many people’s minds in cryptocurrency and trading. We all know Bitcoin and Ethereum are valuable to many well-established coins, but what about these other coins with little to no value? Or do they, and they are just underpriced?
What does it mean when something is called “Shitcoin?” Basically, “shitcoins” is a slang term thrown around loosely to put down cryptos that may or may not deserve to be put down. That’s all subject to your opinion; you know what they say about opinions.
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Table of Contents
History of Shitcoin
The term shitcoin is used in several different ways. One way people use it is to label cryptocurrencies that they hate. They say, “Dude, you’re invested in $DOGE? That is a total shitcoin bro!”
It doesn’t need to have zero value in a coin either; it could just be that the person doesn’t like it. Search Fintwit, and you’ll find tweets like: “Stop trying to pump a shitcoin, no one cares about it, bitcoin is the one true coin to rule them all,” and so on.
Alright, so a coin can be called a shitcoin and be priced in a way that reflects some value. But realistically and practically, a TRUE shitcoin has no utility and no unique features that make it attractive to buy and hold or trade. It’s akin to a stonks meme. It is an “altcoin” or alternative coin created for fun or with good intentions to be useful. But the development may fail or be abandoned. Any price fluctuations during this particular coin’s rise and fall were simply due to speculation or traders just riding the pump and dump.
Are Shitcoins Good Investments?
Haha, are we asking that? Sorry, but shitcoins are generally not seen as good investments. If you’re hearing this term spread around, it’s typically negative (duh), but that doesn’t mean that the coin in question might not have a nice run-up before a correction. Take a look at $DOGE, for example. That coin has zero utility and no real unique features. And it is backed by nothing. Yet, the coin ran up from below a penny to .68 cents. As of July 2021, that is a one-year change of 5981.54%.
Needleless to say, a shitcoin can be fun to trade, just don’t be left holding the bag. They are generally a good way to lose money, especially if you don’t know how to read a stock chart.
CoinMarketCap Website
Breakdown of Shitcoins
I can’t tell you what to do with your money. That’s what financial advisors are for, and I am not one. Please consult one if that’s what you are looking for. That being said, any coin could be a shitcoin, depending on who you ask. Just like any stock could be a crappy stock to one person but not to another. The real thing we need to look for is a long history of established use and acceptance. If that is our barometer, then a lot of coins out there are going to be considered shitcoins.
So, if this is the case, is Bitcoin a shitcoin? Probably not. You can use it on PayPal. Purchase it on SquareCash and buy socks, cars, or pizza. But ONLY from select places in select states or countries. Sadly, for many HODLers who bought this year, it is taking its sweet time to be adopted by the masses, but that makes sense to me because the price is subject to wild swings. Who wants to accept Bitcoin for something only to have it fall 10% 10 minutes later? Not me and not established institutions and businesses. Price stability, within reason, is needed. Compare other currency charts for reference, and you’ll see what I mean.
Some will say, “If you can’t buy the coin on Robinhood, or Coinbase, then the coin is a shitcoin!”
Fair enough. We want to think these companies have our best interests at heart, right? So, are no stinky coins going to make it to their exchanges? Well, as of July 2021, you can buy $DOGECOIN there. If you ask ten different people you stop on the street, some will love it and say it’s going to the moon; others will say it’s trash. So who’s right? Time will tell.
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List of Shitcoins
There are hundreds, if not thousands, of failed coins. These usually end up being tossed into the shitcoin graveyard. However, there are many meme coins out there that people are dabbling with; however, again, I am not recommending you do anything but read the rest of this article and inform yourself. Knowledge is power, baby!
- $SHIT – this index contains an equally weighted basket of 50 cryptocurrencies (calculated in USD on the market listing date). All elements in the index are capped at 30bp divergence from the median. FTX created this index. Shitcoin Index Includes LSK, ICX, ZRX, RVN, BTG, REP, OMG, BTM, THETA, HBAR, BCD, WAVES, SC, GT, NANO, KNC, ENJ, ZEN, VSYS, BTT, CKB, MCO, DGB, KMD, HC, BTS, ZIL, IOST, XVG, AION, AE, STEEM, GNT, MANA, SNT, CHZ, XZC, ARDR, MATIC, REN, LRC, NPXS, ELF, LAMB, POWR, TOMO, GRIN, NULS, ARPA, BEAM. Much like an ETF, these could be removed, changed, or rebalanced. I just thought it was funny that there is an index that tracks a bunch of potential shitcoins and gathers them in one place.
- According to their website, “The most liquid asset ever,” $DIAH is a funny coin with a vibrant Instagram page and a strong community following. They plan to Fork into a reflection token and create a utility coin branch.
- $ASS coin – which stands for “Australian Safe Shepherd.” This is another community-driven and “fair launch token” that runs on memes.
- Poop Token – Based on Ethereum, this ERC-20 token is built on UMA’s Synthetic Token Builder to help solve San Francisco’s public defecation problem.
How Is It Going?
The current world of cryptos is similar to any other industry undergoing dramatic change quickly. There are the early adopters who are first on the scene and set the trends. Then, the masses come in after the water is at the right temperature and reward those early adopters for holding. Then reality hits when the hype fades. Is this cool? Should we be buying this stock, coin, or anything else? Humans are social herd animals, and we tend to move in and out of stocks or cryptocurrencies in packs.
Again, just don’t be left holding a bag of something you don’t understand. So if you’re going to buy any shitcoin, that’s on you, don’t do it unless you know every little thing about it, and don’t do it with any capital that you can’t afford to lose. Your neighbor, brother, or boss might think it’s a good idea, but is it?
Final Thoughts
We’re only 11 years since bitcoin became a thing, and it traded in the fraction of a cent range for many of those years. So, is the next Bitcoin hiding in a pile of proverbial doo-doo? Perhaps. Will you find the right one and hold it to the moon ten years from now? Probably not. Remember the guy who sold his 10,000 bitcoins for two pizzas?
Anyway, just be careful and don’t step in…you know. Anything that doesn’t smell right. But remember that your success rate increases when you understand the meaning of dd. A little research goes a long way; a lot of research goes further. If you’re looking for help, look no further than our free courses, which show you how to trade the markets based on charts, not emotions.
Frequently Asked Questions
Shitcoin are popular to buy, however, they are typically useless assets. It's more of a slang term to describe poor crypto companies.
Top shitcoin's that people are buying:
- BVR TOKEN
- NINJA
- WIFHAT
- FOOLS
- ALTL
- SHIBANAUT
- BABYSLERF
- GREY STACK
- BLACKROCK
- HAMSTER COIN
