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INTRODUCTION
Greetings to every one in steemit reading this post, I am here to submit this week beginners homework of the steemit crypto academy introductory post given by our creative professor @nane15 and i will be answering the question for the homework on the topic "What is a Shitcoin and how to profit from it."
- Explain your understanding of what a Shitcoin is.
- Do you think it is possible to profit from investing in Shitcoins?
- List advantages and disadvantages of investing in Shitcoins.
- List at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
- Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
- Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
- 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.
1). Explain your understanding of what a Shitcoin is.
The name Shitcoin is referred to cryptocurrencies with no immediate, discernible purpose, the name is mainly directed to altcoins because every day there are new altcoins being produced.
Shitcoin is not directed at all the altcoins but the name are for cryptocurrencies that don't have any use case or fundamentals, they are just digital currencies that can go to $0 any time.
A legit and good crypto always has a whitepaper that everyone can read so that you as an investor will know what the aim is and also a roadmap that is well detailed but Shitcoins don't have roadmaps or white paper, they are just created to scam investors because once they have gotten the amount of buyers they want then the creators dump the coin by selling everything.
Some people think every other coin that is not Bitcoin or Ethereum is a Shitcoin and that is wrong because there are alot of coins who serve the purpose that Ethereum serve and are even better when it comes to the fees of Ethereum which can be a pain, so any coin that has a used case is not a shitcoin.
Somepeople are saying that some coins should not be called a shit coin because most of this coin are available on crypto exchanges because they think that if a coin is listed on exchange then it has a use case which is not true. Examples of such coins are Doge coin,safemoon, safemars, safegoat, muskswap token, Babycake, Shiba Inu etc.
It is advised that before anyone invest in anything the person must do some thorough investigating before investing especially when investing in shitcoins because many shitcoins are scams.
The type of investigating i am talking about is reading the whitepaper, the community, the team behind the project and their social media because a scammer wouldn't have any of what i listed.
2). Do you think it is possible to profit from investing in Shitcoins?
There is one thing all cryptocurrencies have in common is that they seems to do well when it is a famous project and people are buying it, that is how shitcoin succeeds so those people who are early investors who took their time to investigate the project whitepaper will definitely know the best time to buy and sell.
You can also make alot of money from a shitcoin if you invest alot of money meaning you providing liquidity for that shitcoin by buying so many of that shitcoin this will make you a whale of that shitcoin then if that shitcoin attract other investors who will buy the coin which will pump the coin when you've made enough profit you can exit the market.
Shitcoin investment is never a long term investment but a short term because you will have to be on alert so that you don't be the losser who is left with a coin that has no value.
Those that will profit from a shitcoin are either the whales or the quick investors who exited the market before the whales dumped it on them.
3). List advantages and disadvantages of investing in Shitcoins.
In this section i will be listing the advantage and disadvantages of investing in a shitcoin starting from the advantages
Shitcoins can make you alot of profit in a short period of time if you are an early investor or a whale of that shitcoins, people have make millions buying shitcoins.
shitcoins can be accumulated in bulk because the price is so little that even though you invest $1 you will still have alot of coins.
Buying many shitcoins an make you a whale that means you can control the shitcoin price.
Shitcoins can be dumped easily because anyone who makes a shit coin is either making it to scam other people or making it a meme coin because shitcoins have no use case
Shitcoins are not a long time investment because shitcoins can easily be dumped to $0 and forgotten that is why it is a short term investment
Some Shitcoins can not be sold after you buy them because they are not in demand after it has been dumped.
4). List at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
In this question i will 3 example of shitcoin that have so far been a scam
- SpaceXfile(SAFE)
- UnderDog (DOG)
- EverETH (EverETH)
SpaceXfile(SAFE)
SpaceXfile(SAFE) is a shitcoin which was launched on 13th of December 2021 and some of this shitcoin information is below
- Market cap - $24,354.19
- Volume - $914.75
- Volume/market cap - 0.03756
- Circulating supply - 5,680,000,000
- Total supply - 8,000,000,000
- Rank - #6947
UnderDog(DOG)
UnderDog is a shitcoin that was launched with the Binance Smartchain on th 17th of March 2021 and some of this shitcoin information is below
- Market cap - $34,888.09
- Volume - $65.32
- Volume/market cap - No Data
- Circulating supply - 1,000,000,000
- Total supply - No Data
- Rank -#7667
EverEth(EVERETH)
EverEth is a shitcoin created and launched with the Binance Smartchain on the 9th of September 2021 and some of this shitcoin information is below.
- Market cap - $6,514,434.52
- Volume - $3,540,862.43
- Volume/market cap - 0.5435
- Circulating supply - 438,234,459,203,720
- Total supply - 1,000,000,000,000,000
- Rank - #2961
5). Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
In this section i will be listing and explaining to shitcoin that has been successful and not a scam and they are this 2 meme coins.
SHIBA INU
This is a Shitcoin or memecoin that don't have any use case created on August 2020 by an anonymous group called Ryoshi, cretion was inspired by dogecoin which is considered as the father of meme coins.
Shiba inu has seen plenty of burn since it was launched on August 2020 and since then the shiba inu token must be burnt to increase the price, it is said that more than 410 Trillion Shib token has been burnt
- Market cap - $15,840,644,279.51
- Volume - $807,393,423.21
- Volume/market cap - 0.05097
- Circulating supply - 549,063,278,876,302
- Total supply - 589,735,030,408,323
- Rank - #13
FLOKI INU
Floki Inu is a shitcoin and an ERC-20 token created with the Ethereum Blockchain, it was named after elon musk dog which is a shiba inu, it is a meme coin but it's white paper rejects that name and say it's a movement not a meme coin, since it was launched it has grown crazy and now have market cap of over $1.06 billion
Floki inuhas seen plenty of burn since it was launched on October 2021 and since then the Floki inu token must be burnt to increase the price, it is said that more than 4.7 Billion Floki token has been burnt
- Market cap - $18,682,514.22
- Volume - $807,393,423.21
- Volume/market cap - 0.05097
- Circulating supply - 549,063,278,876,302
- Total supply - 9,307,888,950,059
- Rank - #2842
6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
In this question i will be historically analyzing the price of shitcoin and the shitcoin that i will be getting this analysis is Floki inu
I will be using the coingecko to do this historical analysis, in coingecko i then search for floki inu
486
What is a Shitcoin and how to profit from it. - Steemit Crypto Academy - S5W8 - Homework post for nane15
ezege11 (58)Beginner[1,2,3,4,5,6,7,8,9,10]in SteemitCryptoAcademy • yesterday (edited)
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Introduction
Good evening stemains,
It is a great privilege to be part of this community and a thing of joy to learn from renowned professors here.
I won't fail to say happy new year to my fellow stemains, I'm glad we all made it to 2022.
In this post, I'll be doing justice to the assignment of one of our renowned professor in the person of nane15 on the subject "shitcoin and how to profit from it".
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Home work
- Explain your understanding of what a Shitcoin is.
- Do you think it is possible to profit from investing in Shitcoins?
- List advantages and disadvantages of investing in Shitcoins.
- List at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
- Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
- Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
- 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.
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Question 1
Shitcoins are coins that don't have any value yet or that doesn't have use case.
The word shitcoin is derived from two different word shit and coin.
Shitcoins as I earlier stated are coins that doesn't have value or use. Shitcoins were created without any definite aim.
Study have shown that for a coin to be created, the whitepaper should state what purpose the coin stand to serve to the general public and how they intend achieving their set down goal, thus the coins use case. But in some cases people tend to create coins probably when they are practicing what they learnt about coin creation and ave no definite purpose of forming or creating the coin, such coins are referred to as shitcoins.
Many people think that any other coin apart from bitcoin and ethereum are shitcoins. Remember I said earlier that any coin that have no definite use case attached to its creation is a shicoin, so to this purpose I can say that bitcoin is a shicoin.
Due to the above reason, people are of the opinion that no coin should be completely tagged a shitcoin because most of them are been listed on exchanges as they see that as a use case.
Examples of such coins are Doge coin,safemoon, safemars, safegoat, muskswap token, Babycake, Shiba Inu etc.
Investing in shitcoin requires a very high level of research by the investor or the person in question.
A trader is not advised to go into shitcoin investment without thorough investigation and research about the coin.
The research includes going through the coin's white papers and the platform in which the token is deployed. By so doing, the trader will know what he/she is signing up for.
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Question 2
There is a saying that goes "the delligent shall eat the good of the land" this is applicable in the case of shitcoins. Those people that gave their time to researching about a particular shitcoin, will definitely know the best time to buy and also when to sell.
Being a big boy in the market can also give you greater chance of making lots of money in shitcoin investment, in the sense that you as a whale can add liquidity to a shicoin by buying large quantity of the coin leading to a bullish rally in the coin and then it will attract people to buying the coin and when you've made enough profit you can exit the market.
Because shicoin trading is more or less a short term investment, it is advised that traders should be at alert as to know when they should exit the market.
Early birds in a shitcoin makes huge profits especially when they exit together with the whales in the market.
So, you can make reasonable profit investing in shitcoin especially when you do your research and analysis.
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Question 3
Shitcoin investment, just like any other investment out there have both advantages and disadvantages.
Some of the advantages and disadvantages are;
Advantages Of Investing In Shitcoins
Quick profit making: because shitcoin investment are fast return investment, a trader can make a reasonable amount of money from investing properly and exiting the market just on time.
Accumulation of large volume: due to the cheap price of shitcoin, it gives room for a trader to hold a large amount of the coin.
Keeps you in control of the market: as a whale in a shitcoin market, you can move the market to whichever direction of your choice
Disadvantages Of Investing In Shitcoins
Sudden decrease in the price: because shitcoins have no use case, an individual can add liquidity to the market just to make his own profit, and if you're unlucky and didn't exit the market on time it will lead to losses.
High rate of fraud: some persons can just create a shitcoin just to extort people of minting fees and at the end of the day the shitcoin will be removed from the market thereby scamming the masses.
Not ideal for long term investment: because shitcoins have no use case, investing in it for long term is a big fat risk that doesn't worth it most of the time.
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Question 4
Below are some cryptocurrencies that have been scam;
Noshit coin
kick token
Banana bucks
Noshit coin
Screenshot_20220108-224848.png
Source
Noshit is a shitcoin launched on december 2021 and some of its information are;
Market cap - $724,359
Volume - $7,389
Volume/market cap - 0.01004
Circulating supply - 100,000,000.08 noshit
Total supply - 100,000,000,000,000,000
Kick token
Screenshot_20220108-230050.png
Source
Kick token was launched on the 1 of june 2017 and some information about kick token is listed below;
Market cap - $3,614,353
Volume - $142,732
Volume/market cap - 0.03888
Circulating supply - 124,766,922.87 kick
Total supply - 123,766,923
Banana bucks
Banana buck is a binance smart chain-based decentralized cryptocurrency lunched on november 2020.
Screenshot_20220108-231507.png
Source
Below are some information about banana buck
Market cap - nil
Volume - $4
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Question 5
Here, I will be talking about two shitcoin that have been successful.
Samoyed coin
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Source
Samoyed coin is a meme token built under solana blockchain by Sam Bankman-Fried (CEO of Alameda Research and FTX) and Anatoly Yakovenko (co-founder of Solana).
Samoyed cretion was inspired by dogecoin which is considered as the father of meme coins.
Samoyed coin was lunched in april 2021 with 14.4% airdropped to the community.
About burn
64% of Samoyed coin supply have been burn over three occasions. The first being during the launching where 2.1% was burned and the last burn was around 2nd of november 2021 where 500 million samoyed coin was burn.
And i will say that samoyed coin experienced a pump around the Q4 of 2021 due to the burns and also effects of influencer.
Information
On coinmarketcap, samoyed coin is ranked #416
With a trading volume of $3,424,116
A fully diluted market capitalization of $289,118,662
And a total supply of 8,248,697,429
Samoyed is trading with the current price of $0.0313 having an all time high of 0.03213 And an all time low of $0.03049
Safemoon
SafeMoon_Logo.svg.png
Source
Safemoon is a shitcoin created on the binance smart-chain network on march 2021. Safemoon charges 10% fee on transaction with 5% distributed among token holder and 5% sent to liquidity pool.
Safemoon was created by John Karony, (a former analyst for the United States Department of Defense).
About burn
About 223 trillion tokens were burned before the lunch and for every transaction 5% is been burned. 416 trillion SafeMoon have been burned from launching till the time of making this post.
Information
Screenshot_20220109-093839.png
Source
From the screenshot above below are some of the information I was able to derive.
Ranking - #208
Trading volume - $1,917,975
Fully diluted market capitalization - $2,164,150,357
All time high - $0.000002167 dated april 2021
All time low - $0 dated march 2021
Current price - $0.000002164
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Question 6
In this part of this task, I will be performing a hystoric analysis of one of the above listed shitcoins and I'll be analysing safemoon using coingeko website
Hystoric analysis of safemoon
The official website of coingeko is https://www.coingecko.com/en
Clicking on the above link will take you directly to coingeko official website. And in this case I'll be searching for safemoon
Below is a screenshot showing the price history of safemoon.
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Source
Floki inu started trading at a price of $0.00000393 around july 2021 as shown in the number 1. Floki inu experienced the first bull around September 2021 reaching an all time high of $0.00001827 on the 3rd of September 2021 as shown by the number 2.
From october 2021 there was another bullish pump by the Floki inu price to $0.00007133 on Tuesday, 19th october 2021 as signified by the number 3.
After the that little bullishmove, the bulls came with a massive pump into the market and drove it to the current all time high of $0.00031 on the 30 of octobet 2021 as shown by the number 4.
From october 30 2021 price began to fall till around today which the 8th of January 2022 it had a little bullish call and continued with the fall as indicated by the number 5
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.
This is a very difficult question because i don't have a crystal ball to see into the future but with the little information i have floki inu may do well this year and the reasons are.
Firstly Floki inu has began a transition from just being a meme coin to a DAO as announced by their official twitter profile.
Secondly the price forming a huge falling wedge pattern that if broken it will pump to the upside.
Looking at the above screenshot, you'll notice that floki inu have been going down a slope forming a bullish pattern after forming that all time high, and i strongly believe that it have over sold and if it breaks out of that resistance it will pump and have a new all time high
- Lastly Floki inu is still a very cheap token and ranked #2843 at the moment according to coinmarketcap, compared to shiba inu that is ranked #13 i believe floki still has a long way to go.
Conclusion
Reading the lecture was an amazing moment of learning while answering the homework was all about the experience i have acquired so thank you professor @nane15 for this lecture i must say i have learnt plenty.