1. Explain your understanding of what a Shitcoin is.
Shitcoin can be very volatile to make investments in due to the fact of large hazard that is related to them. To make investments in shitcoin, traders have to have a grasp of how shitcoin works and have to hold an eye on them via speculation. This is because buyers use hypothesis potential to make investments on shitcoin.
Shitcoins square measure simple to spot as a result of they follow a selected pattern. though there could also be some interest in an exceedingly coin once it launches, its worth remains comparatively level. however, the value will increase exponentially over a brief amount of your time as investors begin to leap on board. this can be followed by a plunk caused by investors WHO dump their coins to exploit short gains.
2 Do you think it is possible to profit from investing in Shitcoins?
3 List advantages and disadvantages of investing in Shitcoins.
Advantages
The price may increase sharply÷Since Shitcoins are low in value, there's a bent for the number of circulation and holdings to be little. Therefore, once an illustrious potent figure and cryptocurrency investors on SNS speak out, at that moment the value typically rises sharply. For example, there are cases wherever the costs of Shitcoins like barges and skill points are suddenly hyperbolic. As a result, finance in Shitcoins will result in sharp value will increase, and you will typically get huge profits.
You can pay for a wide variety of virtual currencies÷ Being able to buy a large type of cryptocurrencies is another advantage of Shitcoins. Some Shitcoins will be purchased for fewer than a hundred yen every, thus if you create it to fifty,000 yen, you'll hold quite fifty forms of currencies. Since you'll invest during an additional distributed approach, you'll expect nice profits by choosing the acceptable cryptocurrency. Holding many varieties will increase the possibilities of an opportunity, thus you may have a well-balanced crypto investment.
- It is logical to carry a huge volume because the price is poor÷ Since the value of Shitcoins is low, you'll be able to hold massive volumes. Cryptocurrency like Bitcoin includes a high market capitalization, and also the value one} coin is around 1 million. You can begin owning from a little quantity of cash, however, you would like an oversized quantity of cash to form an enormous profit. However, since some Shitcoins are listed for one coin or one hundred yen, it's doable to carry an oversized quantity of coins.
Disadvantages
There is a possibility of fraud ÷There are varied sorts of cryptocurrencies, and there are coins that are developed for the aim of tricking cash and coins that don't have any actual condition. In Japan around 2017, a cryptocurrency is known as "Clover Coin" was standard, which was reported to extend at a price if purchased. However, the fact is that it's a typical MLM, and lots of individuals are deceived as deceitful coins. If you invest in deceitful coins, you may lose the price of buying the coins, which means a giant loss. When buying coins, it's vital to gather info from the perspective of development purpose and usefulness.
Price may tumble and misplace its value ÷Shitcoins have the advantage that the worth can rise sharply, however, there's additionally the likelihood that they're going to fall and lose their price. Since Shitcoins square measure originally less-traveled coins, there are very few expectations within the future. Therefore, there's a risk that Shitcoins can suddenly become trifling. When investing in Shitcoins, we tend to suggest that you simply perceive the aspects of high risk and high come back before investment.
The method of exchanges may be eliminated÷It is additionally an obstacle of Shitcoins that the handling of cryptocurrency exchanges is also abolished. When managing cryptocurrencies that have very little liquidity and area unit in low demand, from the perspective of the exchange, it's troublesome for users to trade and there's not a lot of benefits. If the exchange is abolished, the liquidity and worth of the coin might additionally decline. Even if you'll trade Shitcoins, they will be eliminated from the exchange, thus it's necessary to be able to verify if they're reliable coins.
4. List at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Baby Doge BNB
Baby Doge BNB shitcoin was deployed on Oct-23-2021 on Binance smart chain (BSC BEP-20). The evidence contains in these project include total supply, circulating supply, and decimal place of shitcoin. The operation was later noted as a scam.
| Total supply | 100,000,000 |
|---|---|
| Circulating supply | 100,000,000 |
| Decimal place | 18 |
| Holder | 2 |
Raca Dao
Raca Dao was deployed 04 Jan. 2022 on the Binance smart chain (BSC BEP-20). The evidence comprised in these operations includes total supply, circulating supply, and decimal place of shitcoin. This operation was later broadcasted as a scam.
| Total supply | 500,000,000,000 |
|---|---|
| Circulating supply | 500,000,000,000 |
| Decimal place | 8 |
Squid2 (SQUiD)
Squid2 (SQUiD)was deployed on 28 Dec. 2021 on the Binance smart chain (BSC BEP-20). The evidence comprised in these operations contains total supply, circulating supply, and decimal place of shitcoin. This operation was later documented as a scam.
| Total supply | 1,000,000,000,000,000 |
|---|---|
| Circulating supply | 1,000,000,000,000,000 |
| Decimal place | 9 |
| Holder | 17 |
5 Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Examples of shitcoin that have been successful and are currently keeping it are seen below.
BabyCake
The baby cake is a shitcoin was deployed in July 2021 on the Binance smart chain. In a means to motivate users to hold the token, a particular percent of rewards are provided to holders who can hold up to 200,000 of the token and above. The baby cake was noted to be profitable as the token is seen and has been recorded in exchange today.
Information about the baby cake token includes
| Price | $0.00001755 |
|---|---|
| Rank | #6073 |
| Volume | $6,395 |
Safemoon
Safemoon is a shitcoin that was deployed on March 2021 on the Binance smart chain that was utilized to encourage traders to hold on to this token, a 10% fee was being deposited on every transaction. This safemoon was broadcasted to be successful as the token seen is being recorded in exchange today.
information about the safemoon token includes
| Price | $0.000002261 |
|---|---|
| MarketCap | $0.001838 |
| Circulating Supply | 585,536.37B |
| Rank | #209 |
| Volume: | $2,298,651 |
6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
I brought into a reflection of Baby Cake token and I analyzed a year chart. From the chart below I have a price of $0.00001760 and also have a price of $0.0001000, and there was a price below From the analysis, the price knowledge collapse at level II which has kept the price below $0.000001720
The image screenshot I did above has indicated that the baby cake token began with a high price of $0.00001760 but as time advances the price lowers deliberately and from the chart, the price is now detected below $0.00001720
The image screenshot shows that the Time High (ATH) of the baby cake token was discovered on July 23, 2021 (6 months). Furthermore, the (ATL) all-time low of the baby cake token was detected on January 7, 2022 (1 day).
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.
Based on my previous analysis I carried out on the baby cake token if you notice you will see when the token was built it has a high price and as of January 7, 2022, the token encountered [ATL] All Time Low which is a piece of evidence that the token has fallen fully. Based on the RSI indicator it says that unless a coin gets to its oversold region before it can be able to reverse to the opposite direction, so with this little idea of mine I think the baby cake token has entered its oversold region, and the price was determined to backfire.
In my own opinion, I will say the price of baby cake tokens is foreseen to rise back because it has gotten to its [ATL] All Time Low which is detected below $0.00001720 So the direction of the chart is determined to reverse this year, under probability.
CONCLUSION
In this assignment, I have clarified my understanding of shitcoin and I have made my opinion known on investing in shotcoin. I also list the advantages and disadvantages of shitcoin. Furthermore, I list some examples of shitcoin and I explained 3 out of these failed projects. Lastly, I explained two successful shicoin which people are still holding till today and I did a historical price analysis of one of this shitcoin with the prediction of price direction this year.
Special thanks to Professor @nane15 for this great lecture.
Cc:- @nane15