1. Explain your understanding of what a Shitcoin is.
Shitcoin which is a name that originated from 2 words shit and coin that give a broader meaning of crap currency or shit currency is a currency that lacks basis or a project to its name. Such that this coin is considered as useless or fraudulent as anybody can create a Shitcoin and use it to scam people. The shitcoins have no value and it is for this reason that it is considered worthless and useless.
No one, in particular, is responsible for determining whether a currency is considered a shitcoin or not. It is just up to anybody with his or her mindset about what a shitcoin is. Some consider shitcoins as any currency that has no strong project or roadmap, while others consider shitcoins as currencies that have tendencies to be scams. Some people consider shitcoin as any crypto that has no true purpose and as any crypto that is just to imitate another crypto.
2. Do you think it is possible to profit from investing in Shitcoins?
Those traders who place trades based on speculations will find that shitcoins can be very beneficial and profitable for trading. This is because, shitcoins have the tendency to multiply their values 10 times even, within a short period of time due to the volatility of the crypto market. Speculative traders will find this aspect of shitcoins very attractive to place their speculated trades as they can be able to multiply their investments within a short period of time.
When some shitcoins such as DogeCoin experience sudden booms and grave rise in their prices, other shitcoins such as ShibaInu will be created to try to salvage some of the glory of DogeCoin. If a trader was to speculate and invest in ShibaInu, the trader will be experiencing a real big profit margin from the booming rise of the price of Shiba since it’s creation.
3. List advantages and disadvantages of investing in Shitcoins.
Advantages of Shitcoin.
- The booming price of shitcoins can be very profitable.
- Traders can acquire a large quantity of the coin while at a low price.
- Short term investment with shitcoins is very beneficial.
Disadvantages of Shitcoin.
- The prices of shitcoin can fall massively during shirt term investment.
- There is a high risk of scam.
- Long term investment is not ideal with shitcoins.
4. Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
- Squid.
The Squid token is token that was derived from the hit series Squid Game. The token is used as a reward system where users get rewards in Squid from playing deadly games as in the movie. But the owners if the Squid blocked withdrawals and deleted all active accounts on social media thereby making this shitcoin unsuccessful.
Golden Shiba token.
This is a scam token where the creators tried to make this coin to be identical to the successful Shiba token and thus misrepresent a token and scam the investors who wished to invest in the Shiba token.
Battle warship.
With this project, it used to have a price of about $1 and there were many investors in the market until the point when over 900 thousand of the native token OIL got withdrawn from the game by the developers. And from the image below, we can see that they even made sure to delete all the accounts for communication such as Telegram, Disckrd, and Twitter.
5. Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Dogelon Mars.
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The Dogelon Mars token is a meme token that happens to bear likeness to technological entrepreneur both in the name and in the appearance of the token as is seen above. This has given the token a big popularity in the tech market. Also, the Dogelon Coin has been existing for a while now giving it a high risk of reliability and trust as it has appeared to not be a scam. The success of Dogelon also rose due to it’s number of followers and fans that make up the community accounts on the various social media such as Discord, Telegram and Twitter. The followers help promote the success of the Dogelon coin.
Wownero.
The wownero token is another shitcoin that has experienced success since it’s creation on April Fools day 2018. This is a meme token that seeks to make money in the crypto market. Most of it’s success is accounted for from the support of the members of it’s community from the different channels such as Discord, Telegram and Twitter.
The token reached an all time high of $2.03 and since then, has not reached it again. The current price as at the time of making this post is $0.1098
6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
I will analyze the Dogelon coin ELON in order to carry out this task.
From above screenshot, we can see that the price of ELON started at a price of $0.00000000078 and then, it experienced an all time high at $0.0000040 in August 2021. It has since then had a fall and then a rise only to $0.0000018. But within the last month, the price of ELON has been in a down trend and this has led to it’s current price right now of $0.000001242.
7. 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.
In the above screenshot of the chart of the ELON COIN, we can find that the price has been in downtrend since then which there fore implies that the market is currently dominated by sellers. Since no trendljnes have been broken and following the lower low market structure, I will suggest that the market will remain in this bearish nature for a while and that is my prediction. So, if anybody is to place an order, it should be the sell order.
Conclusion.
Shitcoin is a cryptocurrency that they don’t give any solid backing from projects or backgrounds and thus, they are very unpredictable. It might turn out to be successful and also, it might be very unsuccessful. Only experts with experience should trade shitcoins when they are still fairly new to the market.
ALL IMAGES ARE TAKEN FROM COINMARKETCAP.COM AND TWITTER.COM UNLESS OTHERWISE STATED.
Thank you for reading.
@nane15