Q.Explain your understanding of what a Shitcoin is?
Basically, Shitcoins are Cryptocurrencies with no clear purpose and no practical value. These coins are developed without proper planning and it doesn't represent any projects.
In general, these coins do not contain any value so, they don't have any special purpose and are useless to support these coins.
These are developed after bitcoin has become popular. Anyone can create these coins and perform any kinds of scams using them because they don't hold any kind of real value.
usually, these shit coins don't exist long because of insufficient functionalities or no specific purposes. Shitcoin does describe the cryptocurrencies but they won't be considered as they won't make many differences in the crypto world in general.
These shitcoins are called worthless because they have the functionalities and the strength that are required to support the block chains.
Usually, the developers of these coins are mainly focused on misleading the markers or scamming the investors.
Q.Do you think it is possible to profit from investing in Shitcoins?
Yes, I think it can be profitable because they follow trends to boom, so taking advantage of these hikes can be profitable with proper research on that coin.
Investing in these shit coins can be taken only for the short term because there is no purpose to hold these coins.
before investing in these we should be aware of the tactics of the scammer then it help us to take less damage to our investments.
Therefore, although there is some risk, these are for the ones who aim for high returns.
Investing in these coins is really complicated and should always keep eye on the markets and trends.
only a few of the shitcoins get succeed and they have provided unexpected returns. Even there are many cases that they create a trend and scam the investors in many ways.
We can see many shitcoins around the market but we can not differentiate the legal coins and the coins which are created for the scam or to create the buzz around.
Q. List advantages and disadvantages of investing in Shitcoins?
The main advantage of these coins is they may grow rapidly and give high returns and as they contain very low value we can buy in high volume and we can buy many other shit coins with less investment and high volume.
Taking risks and doing proper research helps you to get high returns in a short period.
The disadvantages are as these coins don't hold any foundation, these may lose all the value and also it may crash.
There is a high risk of getting scammed by investing in shit coins and you may lose all of your investment.
Dishonest developers and these are highly volatile.
Q. Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of?
1. Squid Game: Squid coin was launched by a group based on the hit Netflix show. As shitcoins sometimes rapidly grow based on the trend on the internet. this coin was listed at 12 cents and it hit an all-time value of $2,861. and for an instance, it crashed to less than a value of cent.
2. SALT :
During the launch, Salt was trading for $8 and Within a month it has reached the all-time high value of $16. which is s a 100% return, but it has crashed and no longer holds the value.
3. PPT (populous): it was also a shitcoin that was launched at $1.9 and lately it has reached its all-time high value of $74 within 2 months that's a lot of return but ended up with no value.
this coin had high capitalization and due to less focus on the project resulting in the downfall.
Q. Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)?
1. MIM (Magic Internet Money): Magic Internet Money's price as of now is about $1. Magic internet money can be considered as a less stable coin. we consider it as shitcoin because of its team, its support on exchanges is also very low.
2. Dogelon Mars: It stands #107 in coinmarketcap. It was founded based on the steps of the coin Dogecoin which was founded as a joke and it had created hype in the whole market.
It also holds the big market capitalization as of now.
Q. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)?
From the chart above, we could notice the movement from Dec,20.
It was started moving up slowly and steadily, which after some time the coin keeps being stable not considered bullish then again on April,21 it started falling from $8 to $2.
Significantly the price has dropped to $0.5 as of now, the one who has invested and moved of this during the bullish movement had made a lot of profits out of it.
Q. Based on your previous analysis, what do you think will be the development of the price of the cryptocurrency for this year? Be creative when explaining?
From my analysis, we can see in the charts above that how really that coin had performed till April, then it started dropping due to lack of functionalities and less focusing on the project that are related.
The developers who developed the ppt are good, but they need to focus on improving and providing back the strength so it can add the users and it might grow back soon.
although it started at around $3, it build a good amount of returns in a short period and by maintaining stability and raising slowly.
Providing support and being highly involved in the part of the development and mainly building trust among the users will help the coin back to growth.
Q. Conclusion?
A. Investing in these Shit coins makes us earn big profits or high losses. These shitcoins will rise and give high returns due to sudden popularity. A trend among shitcoins is that they just replicate the other famous coins and grab popularity. they are highly volatile and must be clear enough before investing in these coins. by Investing in the shit coins, we need to bound the risk factor so that it can cause less loss in our funds.
We need to figure out the good and the bad ones out of it and then we need to invest into them and also we already know some coins have been created as a joke but lately it has formed a huge community so we need to Invest Wisely.