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Greeting Everyone,
Welcome to the homework post for the 8th week of Steemit Crypto Academy. This is the last week of the 5th season and I would like to appreciate the efforts of the professor for his valuable teachings. He has always come up with several interesting and essential topics. As for now, he has provided a lecture on shitcoins which has been a great source of profits and loss as well for many people. I will talk more about this topic in my homework post.
Explain your understanding of what a Shitcoin is.
Explain your understanding of what a Shitcoin is.
It is true that the crypto industry has its own unique vocabulary which can sound fascinating to everyone. Out of several terms, shitcoins is one of the most used words. If you break it down, then you can notice that it is made up of 2 words that are “Shit” and “coin”. Shit simply represents uselessness while the coin indicates digital currency. After combining both words, we can say that it is referred to such crypto coins that are useless and has no value in the industry.
Bitcoin was invented in 2009 and since its creation, a lot of crypto coins have been established that are widely referred to as altcoins. Some of the altcoins have a unique and valuable purpose which is of great importance in the current landscape. On the other hand, shitcoins, have no purpose at all and they are developed for literally no reason. Since they have no practical use in the world, they are not paid enough heed and are mostly overlooked. Some of the examples of such coins are dogecoin, Shiba Inu, Saitama, Zombie Inu, and a lot more.
However, shitcoins have been of great importance among crypto enthusiasts as it has become a great way to make a huge profit in no time which can be considered as short-term gain. The majority of shitcoins remain stable in the beginning and once the investors put their money, the prices skyrockets and after the profit is a book at an incredibly great margin, the price makes a downtrend which brings unbearable loss to retail traders. So, over the course of time, shitcoins is only used by big players in the market to make money and it has no other good purpose than that.
Every cloud has a silver lining and the same goes for shitcoins. Not only does it gives huge profit but there has been some incident in the past in the form of scam projects. Whales and investors put their money into projects which turn out to be Ponzi schemes. So, one has to be mere cautious while investing in shitcoins.
Do you think it is possible to profit from investing in Shitcoins?
Do you think it is possible to profit from investing in Shitcoins?
I believe that it is certainly possible to make an unmatched profit from shitcoins. It might sound unbelievable but I have seen some people make more money from shitcoins than it was possible to do through trading from renowned cryptocurrencies and that’s how I believe it is a potential investment opportunity.
There are thousands of shitcoins right now and there’s no denying that the majority of them are scam projects but still there’s a number of projects with strong backgrounds that have gained the attention of crypto enthusiasts and attracted huge investment. Such shitcoins that are widely famed and come from renowned developers have the potential to give huge returns. So, there’s nothing wrong with investing a tiny part of capital into shitcoins as it can be unbelievably profitable at some points and more than some of the top cryptocurrencies.
The only thing that a person has to keep in mind is that the project is strong and maintains an active presence on social media platforms. The team behind the shitcoins should be considered as well. Some of the developers keep their identity anonymous and such types of projects have been nothing but a scam. Everyone knows that not every shitcoin will be profitable so a thorough investigation must be done before investing.
List advantages and disadvantages of investing in Shitcoins.
List advantages and disadvantages of investing in Shitcoins.
There are several benefits of investing in shitcoins but there are some disadvantages as well. Every crypto trader should know about the major advantages and disadvantages so that a person gets to invest more cautiously. So, have a look at the below-mentioned major perks and drawbacks of shitcoins:
Advantages
Here are some of the most fascinating advantages of investing in shitcoins:
- Shitcoin has the potential to provide a huge return on investment.
- It can give a huge return on a small investment of $10 as well.
- The price of shitcoins is less than a single penny due to which a great number of tokens can be purchased which increases the margin of profit.
- It is one of the quickest ways to make an exceptional profit.
- The price of the shitcoins rises sharply which can make it easy to book huge profits in no time.
Disadvantages:
Shitcoin not only offers great benefits but also comes with great risks. Let’s take a look at some of the disadvantages:
- Shitcoins are not listed on major cryptocurrencies exchanges like Binance, Kucoin, etc.
- There’s a huge chance of scam in shitcoins due to which entire investment can be lost.
- Rug pull is very common in shitcoin projects which can result in loss.
- The price of shitcoins tokens can decrease at a great pace.
- It is not ideal for a long-term hold.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Now I will tell you details about the 3 shitcoins that turned out to be a scam which occurred a great loss to investors. It is nothing new in the crypto industry as the majority of shitcoins have done nothing but provide unbearable loss to others. By learning about some of the projects, you will be able to get insight into the risk involved in the investment of shitcoins.
OMICRON TOKEN (OMIC)
After reading the name of this token, there is one thing that might have come into your mind and that is the variant of COVID-19. This project was launched a week before the researchers found out about the deadly variant called omicron. It wasn’t even famous for a bit and was only available on a single exchange.
However, it was only trading around 60-70$ but after the official announcement of the COVID-19 variant, it pumped to hundreds of dollars and reached an all-time high of around $700. As for now, its value has plumed real bad as its 24 hours trading volume is 0$ and the price is 0$ as well according to "The Bit Times".
SQUID2 (SQUID)
This shitcoin was inspired by a blockbuster Korean serial called Squid Games which became a worldwide phenomenon and so did this coin. A lot of people invested in this coin but little did they know that it became the perfect example of rug pull as the developers withdraw all the funds once it was pumped. Thus, its value took an extreme downfall.
Baby Doge BNB
Another shitcoin scam on my list is Baby Doge BNB which affected the investment of countless people. It was built on BNB blockchain with a total supply of 100,000,000 tokens but it may sound unbelievable that there’s a single wallet that holds all of them. The price of each token is $0 so it is useless to hold. However, the huge pump, in the beginning, attracted a lot of investors but it turns out to be a scam.
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
A lot of shitcoins has been successful and maintained a good reputation among crypto enthusiast. The reason due to which the majority of shitcoins are able to rise is that they have a strong background and great purpose. Take an example of Dogecoin and Shiba Inu but that’s not all, I have also come up with a few shitcoins that are actually good and worth the investment.
Safemoon
Safemoon is a DeFi token that was launched in 2021. At the time of writing, it is worth $0.000002243 and ranks at 208 which is continuously improving. It can be called shitcoin but it has much more uses than an average altcoin. This project is about to come up with an NFT exchange, charity programs, and crypto educational apps. Plus, it takes 3 actions on each trade that are Reflection, LP Acquisition, and Burn due to which its price remains stable and encourages people to hold it for long-term. It is built on the Binance blockchain and after reading its whitepaper, it seems a good investment opportunity.
Floki Inu
The 2nd shitcoin on my list that is successful is Floki Inu. It is inspired by renowned entrepreneur Elon Musk's dog which is also named Floki. At the time of writing, it is valued at $0.00008645 and ranks at 2851 which has incredibly improved in the last few days. It has the investment of countless crypto enthusiasts due to which its trading volume is $18,349,589.94 with a total supply of 9,307,888,950,059 tokens.
The team of the developer is also launching its NFT gaming metaverse by the name of Valhalla along with NFT and merchandise marketplace which will be called FlokiPlaces. Plus, they will also launch an educational platform called Inuversity.
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
I have chosen Floki Inu to analyze its chart so that we can learn more about its historical price action. If you take a look at the below-mentioned chart then you can find that I have made a pattern to predict the price and find out what happened in the past.
The opening price of Floki Inu was 0.000089 and after a few days, it was able to make an all-time high of 0.0004. If we consider the fundamental, then the reason was that Elon Musk tweeted relating to his dog named Floki. So, the interest of investors was sparked and that’s how it was able to reach the highest price. However, you can notice that it has been in a downtrend since that and formed a falling wedge. Plus, the price is currently standing at the daily support zone which can be a reversal point to the ongoing downtrend.
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 your previous analysis, what do you think will be the development of the price of the cryptocurrency for this year? Be creative when explaining.
As you can see from the below-mentioned chart of Floki Inu, the price is in a falling wedge pattern which is a sign of the bullish trend. Additionally, the price is consolidating in a strong support zone. So, there is a strong confluence to bullish trend so technically we can deduce that the price can bounce and start an uptrend with momentum.
Further, the team of developers are launching more programs in the future like NFT marketplace, educational platform, and much more which means that it can attract more investors that can increase the price of the token to a great extent.
Conclusion.
The conclusion of my homework post is that shitcoins are those tokens with no purpose. They are preferred by the majority of investors as some of the projects can provide huge profits in no time. While there are some amazing advantages, investors also face some disadvantages like huge losses and much more. I also provided details about some of the scam shitcoins and those that have been performing very well in the market while also predicted about its future price.
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@nane15
