In the crypto scene, shitcoins are always the reason for quick jokes.Especially the word Shitcoin comments on crypto-currencies that have largely lost their value.But how to recognize a shitcoin before it’s too late?
In the jargon of the cryptocurrency world, Shitcoin is a fixed term, often used when controversy is discussed.A direct translation into German is not necessary, shit and coin are typing themselves.For the first time, the word was probably used in a Bitcoin discussion forum (BTC) at the end of the year 2010.
Even then, a co-actor wanted to express predictably how to give new cryptocurrencies that promise more than just hold.And indeed, of the nearly 3,000 crypto-currencies listed, there are hundreds of examples where projects have failed for a variety of reasons.Add to that dozens of old coins suspected of becoming shitcoins.
But there are clues that you probably recognize as a likely Shitcoins investor and so you should avoid any investment.
Typical features of a shitcoin
Why is the price of a cryptocurrency in free fall? Well, with such shitcoins shows that the expectations of the project and the objectives of each piece have not been achieved.During the OIC boom, some investors almost blindly attacked the launch of new cryptocurrencies and neglected to examine the background.If a project does not contain a well-thought-out white paper, the risk increases with Shitcoin.Or if in the team behind the Altcoin, dubious characters take part, which had already been noticed.
Often, no team is presented, which is also a good indication.An indication of a future shitcoin is also when the team reserves itself the corresponding amounts of the new coin.
Another tricky question is how to protect the coin from inflation.Are there already other Altcoins, which follow a similar concept? Then the path for Shitcoin is not far.At the latest when the trading volume of a cryptocurrency approaches zero, the fate of a shitcoin is sealed.
However, it is also interesting that popular Altcoins check the potential of Shitcoin.Ripple (XRP) is suspected of Shitcoin because of the lack of decentralization and a constant sales program that fuels inflation.Bitcoin SV (BSV) is running for shitcoin only because of the famous liar Craig Wright.At Tether (USDT), there is uncertainty about the currency reserves behind the Stablecoin, which suggest a possible Shitcoin.
The list of potential shitcoins could probably last a long time.The website “Do I have a shitcoin?” With funny comments on many Altcoins, a good first idea of the criticism they face.
Rating agencies such as Weiss Crypto Ratings assess risks in more detail.
Conclusion: the Shitcoin phenomenon and its consequences
Among the candidates for Shitcoin status of the 2019 cryptographic year are Algorand (ALGO), LEO and Kim Dotcoms K.IM.You will notice that shitcoins are not a rare marginal phenomenon, but more deeply rooted in the crypto industry than is often assumed.The danger is that shitcoins also harm the image of trustworthy projects.
In the largely unregulated cryptography market, no institution is able to prevent shitcoins.It is therefore essential that you think carefully about investments to avoid speculative bubbles.If you act as a fanboy, you will probably be faster to hit Shitcoins than the sober analyst.Because a cryptocurrency exists, it has no real monetary value for a long time.
So, it comes to the fact that even Bitcoin (BTC) as the reserve currency of some like Shitcoin is classified.The final definition of Shitcoin is still pending – but the word pejorative has already found a permanent place in the vocabulary of crypto-merchants.
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