After the appearance of the main cryptocurrency Bitcoin, other alternative coins gradually began to appear, copying the basic idea. These coins are called altcoins (alternative coins). Among them there are projects that do not have any technological component, are low-liquid and do not attract investors, as well as fraudulent. In the crypto community, they are referred to as shitcoins.
There are promising projects among bitcoins, but for a number of reasons they cannot gain a high rating and become popular. The reasons are usually as follows:
– insufficient project financing and fundraising at the ICO stage;
– ineffective marketing strategy;
– did not receive community recognition;
– problems with regulatory authorities that do not allow the project to be fully launched.
In the category of shitcoins, there are also frankly fraudulent projects that were created only to enrich their creators at the expense of inexperienced investors. There is no way to bring to justice for this type of activity due to an incomplete legislative framework. The following factors may indicate this:
- absence of any technical documentation on the project website;
- there is no information about the creators and the project team;
- project goals are not specified;
- a small number of exchanges where the coin is represented;
- manipulation of the valuable (sharp pump and dump);
- lack of interest from investors;
- low liquidity ratio.
A large number of shitcoins are becoming popular due to the active advertising of celebrities, bloggers or influential people in the crypto environment. Against this background and positive news, coins begin to pump, and then there is a sharp pullback of the price down.
Where did this term come from?
Shitcoin is a slang expression in the crypto community consisting of two words. The second means “coin”, and the first means “feces” with a stronger accent. It is better to use a translator. Since the advent of cryptocurrencies, this expression has been fixed for cryptocurrencies that are not of particular interest to investors and traders.
Where can you see the list of shitcoins?
There are services where you can monitor low-rated coins. Among them is the poocoin.app service, which allows you to learn more about them. The site presents various tools in the “Tools” section:
- Telegram Price Bot is a Telegram bot that shows the prices of a coin that has been collected;
- Multi-Chart – a chart for tracking multiple cryptocurrencies;
- Trending – tracking the shitcoin rating (trend);
- Sniper Bot Watcher – monitors whether the coin is launched by a bot;
- Trending – used to compile a rating of shitcoins;
- Ape – monitoring of new projects;
- Toilet is a section for coin farming.
- Rug Check – information about the various actions of the selected coin;
- External Tools – other tools that can be useful when working with shitcoins.
- The service has its own token, which is presented on many exchanges. Various crypto projects are added daily, which are also presented on CoinMarketCup and Coingecko.
For those cryptocurrencies that are no longer functioning, there is a service “cemetery of crypto assets” – deadcoins.com .
Choosing “shitcoins” for trading is not recommended to buy signals for money. In the absolute majority of cases, the signal seller does not know how this or that coin will behave, and the main goal is to enrich himself by providing “empty” information.