Hey Steemit!
Here is my homework post for Professor @nane15. It was a great lesson, and I hope you will enjoy reading my post.
Before we can completely explain what a shitcoin is, we must first describe just what shitcoin is not. I think we both can see that the phrase shitcoin is made up of two words: shit and coin. In contemporary English, crap may refer to a variety of things, however the word shit in the coin refers to anything that is worthless or incapable of being utilised for anything. Cryptocurrency is a term used to describe a currency in the crypto realm.
Various people have different ideas of what a shitcoin is. Some people are referring toward a shitcoin as a cryptocurrency that serves no use and was created by criminals. Investment in it is a swindle. Some people are referring towards shitcoins as cryptocurrency with very little or no value, and investing in them requires a large amount of cash to make a profit, or the profit won't be visible.
Shitcoins are sometimes known as penny cryptocurrency. Because the price of these cryptocurrencies is less than one dollar, they are not widely respected.
A shitcoin, in my view, is a crypto that is underestimated and primarily wants to reward those who were among the first to invest in it. There are several currencies that are shitcoins. The popular dogecoin, Shiba inu, money, and many more are among them.
As I previously said, some people consider shitcoin to be a penny cryptocurrency, but we can see that even if magic Internet currency is worth one dollar, it is still seen as a safe moon, so let's refute the idea that penny cryptocurrencies are shitcoin.
What we should keep in mind Is investing in cryptocurrencies a danger in and of itself, given how unpredictable the market is and how a coin might fall or increase at any moment, leaving a trader in the red? Knowing when to buy in a coin at the correct moment is the best method to earn money, but because the maker is so unpredictable, a client can never be sure when it's the appropriate time.
I believe that, as many users have done over the years, it is feasible to benefit from investing in shitcoins. It's all about timing your investments. One method an investor may invest in a shitcoin, according to the professor, is via speculation. There is a possible price increase for that crap currency when there is a lot of buzz around it. Many investors expected Elon Musk, also known as the Doge Father, to give the currency a major boost with his interview at the SNL. The coin reached an all-time peak of 0.7 dollars in the hours leading up to the interview. Prior to his arrival, he criticised the currency, calling it a ruse and them. It started to fall again. So a trader can make profit from shit coins.
Shitcoins have benefits and drawbacks to investing in them, therefore let's have a look at the full benefits and drawbacks of shitcoin investment.
Advantages
Because shitcoin earnings are usually made in a short period of time, a trader who joins the market early might make a large profit before the price spikes.
Because they are of little or no value, the prices are very low, and anybody may invest in them.
They have the ability to multiply by 10, 15, or 20 times in a short amount of time, allowing traders to earn quickly.
A trader can estimate when to join the market since they generally rise in price due to speculation.
When Elon Musk said that Tesla was attempting to incorporate dogecoin into its payment processes, the price of the cryptocurrency began to soar. It also began to rise when he was scheduled to do an interview on Saturday Night Live.
Disadvantages.
Because it's a shitcoin, they usually don't have a white paper and the individuals behind the project aren't well-known, it's easy for it to develop into a fraud.
Shitcoin investments only benefit those who put a lot of money into them.
Due to the low market valuation and backing of most shitcoins, they may quickly transform your investment into a significant loss.
Shitcoin investments are dangerous since most individuals engage for short-term gains. If a trader does not exercise caution, he will lose when others opt to take winnings.
4. Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Because the cryptocurrency market is expanding, there will be unscrupulous actors looking to defraud consumers by inventing these tokens and then listing them. A user just requires a few lines of code these days to produce a token, and a little price will be charge. PTT is the first shitcoin on my list that was a fraud.
PPT is a coin that was introduced in 2017. It was supposed to become a platform that provided 90-day liquidity to medium-sized businesses. The liquidity given is intended to facilitate engagement between the businesses and, among other things, to assist in the resolution of difficulties.
Whenever the PPT token was first released, it was priced at 1.9 dollars, but within two months, it had surged to 74.85 dollars. The initiative's founders and staff abandoned the project at this moment, before investors could claim their winnings. It has dropped dramatically to 2.5 dollars, and the PPT token is now trading at 0.5768 dollars.
The squid game token is the next shitcoin on my list. The squid game token is based on the famous Netflix series of the same name, which debuted in 2022. The film is all about a game in which thousands of people fight for a prize, with the winner being the last guy remaining just at end of the day.
After the film's success, it garnered a lot of attention, and some individuals came up with tokens and a sport for the film. Players had to pay a token so they could play a game, and that was a win to earn game. Many people were lured to the game because of its popularity, until the price began to rise by more than 1000 times, and the founders decided to abandon the project. Following that, the film's makers informed the public that they are not the ones behind the squid token and, as a result, the game.
The SALT token is the last but not the least currency on my list. In the year 2016, this token was released. It was intended to become a lending platform which would provide crypto-backed loans to its members. The platform works by enabling users to deposit tokens like bitcoin and doge, among others, as collateral for borrowed funds or stable currencies.
When the SALT coin was first released, it was priced at about $8, but it immediately rose by 100% to $16, but before customers could benefit, the company abandoned the project. The price began to plummet and dropped to 0.30 dollars, where it is presently priced at 0.114631 dollars.
5. Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.).
There are various shitcoins that have the potential to earn large gains for those who have the guts to invest in them, and their values continue to fluctuate and reward traders who put bets on them. After successfully discussing shitcoins that were scams, I will now discuss shitcoins which were successful and still operating to this day.
I'm going to speak about two tokens:
- Floki inu
- Safemoon
The floki inu is the first shitcoin on my list. Floki inu is indeed a crypto that was created by cryptocurrency fans that support the Shiba inu meme coin. Rather unexpectedly, the creators do not refer to floki inu as a meme currency, but rather as a movement. The name of the currency derives from Elon Musk's dog, who is also called floki. The currency has three goals, which are referred to as flagship utility projects, and they are as follows:
To have a valuable NFT gaming experience in the metaverse universe.
The floki locations, which is a trading market for their nft.
Floki University is an educational institution.
As according coin market cap, the price of one floki inu equals $0.0001016 now at time of writing. It has a 24-hour trading volume of $10,990,649 and is ranked 2857 in terms of coin market valuation.
Safemoon is the second currency on my list. Safemoon is a currency that was first released on March 8, 2021. The safemoon currency is indeed a DeFi token that is used for trading, Lp acquisition, and burn reflection. John Karony, the token's founder and CEO, is the token's creator. The safe moon currency is among the few shitcoins with a whitepaper, which is surprising. The gaps and what they intend to accomplish are detailed in this white paper. They claim that owing of a high APY LP-farms, newbies to the DeFi area are having a tough time navigating the space. As a result, the token's overall goal is to utilise the reward to alleviate any pressure that arises from trading the token.
To add to that, the whitepaper actually encourages token holders to maintain holding since they are rewarded for doing so, and they create place for them by burning tokens from time to time.
On coinmarketcap, the price of one safe moon coin is $0.000002165 at the time of writing. Its current market value is $1,267,470,057. According to coinmarketcaps, it is rated 210th. It has a trading volume of $3,570,800.24.
Safe moon has a circulating supply of 585,536.37 coins, according to coinmarketcap.
6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.).
I'll base my research of the safemoon currency for this question. On the March 8th in the year 2021, the safemoon token was released. When it first went live, one secure moon token cost $0.0000000010. At the moment, there were 777 trillion safemoon coins in circulation.
As SafeMoon was first released in March of the last year, it must have been a V1 token, but it was subsequently upgraded to a V2. The price of the tokens began to rise after the migration to the V2.
We've previously stated that most shitcoins rise in value because to speculation, and safe moon was no exception. So, following the token's transfer to V2, traders who trade based on speculation began to buy and hold, and the token skyrocketed to an all-time high of $0.003408 on January 1st of this year. This means that traders who bought the token after it was transferred to the V2 following speculation quadrupled their money and exited the market profitably.
The token's current price is $0.000002165, a dramatic decline in price that demonstrates that when consumers discovered their profits on January 1st, they chose to exit the market, therefore traders who were first to participate at the start are the genuine winners of such shitcoins increase.
Screenshot Source
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.
We've learned in the crypto world that everything rises will inevitably fall, so that means everything that falls will inevitably rise. As a result, it's hardly surprise that the token started to plummet after reaching its all-time high. This is only a reflection of the fact that sellers are starting to gain traction over purchasers in the market, and it will eventually climb again.
However, with shitcoins, most individuals have indeed been able to defraud others by creating a token and then abandoning it halfway through. Or they abandon it, leaving holders with worthless coins. However, as we can see, the price of the token is falling after its all-time high, and traders are profiting, this will only take an another few dollars to be reinvested in the token for it to begin to rise, and given that its all-time high was reached this year, another substantial migration will surely cause the cryptocurrency to rise once more.
As I previously said, shitcoins are coins that, in my perspective, allow traders generate quick gains if they buy early. Most people consider shitcoins to be a fraud since the majority of them lack recognised team members and others lack white papers. Whitepapers explain just what token is all about, what it would be in the coming days, and where it will lead its owners. Keeping a shitcoin is indeed a poor idea since it just takes a few seconds for the token holders and owners to be scammed.
Investing in shitcoins is dangerous, but it may also pay off for traders, as some of these have been known to make individuals wealthy, such as the famous Shiba inu meme currency. It was a great lesson, I thank Professor @nane15 for giving us this lesson.
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