They are notoriously volatile and account for most of the new cryptocurrencies in the market. The term shitcoin highlights this trait, as projects like Shiba Inu have famously pumped and crashed in the past. Elon Musk’s tweets have been known to disrupt cryptocurrency markets, creating both rallies and huge sell-offs, after he lends public support for or lays criticism against, various projects. Musk also shares his thoughts on Bitcoin regularly using Twitter, like announcing in 2021 that Tesla bought USD $1.5 billion worth of Bitcoin. Shiba Inu is an ERC-20 token built on Ethereum that’s reported to be 100% run by its community. For every cryptocurrency, there will be a debate over whether or not it’s a shitcoin.
This means that each token is unique and as a result, not interchange... Launched by Binance after an initial coin offering that ended on July 3rd, 2017. The Parabolic SAR, or Parabolic Stop and Reverse, is a trailing stop-based trading system and is often used as a technical indicator as well. We rely on reader support and your contribution will enable us to keep delivering quality content that’s open to everyone across the world. You don’t want to touch it with a 10-foot pole even if Crypto Twitter is telling you it’s the next Dogecoin.
The diminished value of a shitcoin is often due to failed investor interest because it was not created in good faith or because its price was based on speculation. As such, these currencies are considered to be bad investments. Cryptocurrencies like Dogecoin, Shiba Inu, and Monero are popular coins classified as shitcoins. These coins have a bountiful supply that affects their price and gives them little or no value.
Small-capped coins are often seen as opportunities due to their low price. As such, many people create unrealistic expectations and end up losing a lot more than they invest. A good example of this phenomenon was the impressive rise of value in XVG, a privacy coin that many people regarded as a shitcoin.
They’re often used to describe cryptocurrencies that were developed after bitcoins became popular, like Dogecoin or Shiba Inu coin. The catch, however, is that shitcoin currencies are often considered to be bad investments, because their prices are usually based on speculation. It is, after all, the internet, where anonymity reigns supreme, and the entire premise of crypto has always been just that, to transact anonymously, like digital cash. But the realcyberdoctor end might be nigh for these pump-and-dump shit coin schemes, special thanks to Elon Musk. Some have theorized that Musk’s move was the ultimate pump and dump as he was able to buy low and sell some of his holdings high .
There are exciting possibilities out there when investing in cryptocurrency, but this isn't one of them. Stick to serious projects that are aiming to solve real problems. With joke tokens, it's only a matter of when -- not if -- they'll collapse. It's one of those cryptocurrencies where the name is pretty much the only reason it exists. There's nothing it does differently from thousands of other crypto tokens, so the only reason to purchase it is the fact that it's called Shitcoin.
Other cryptocurrencies aim to build a utility for DeFi purposes. Yet, shitcoins defy all of these value pitches and implicitly, or explicitly, offer no utility whatsoever. A shitcoin is a cryptocurrency with zero or close to zero value and no utility. The term shitcoin is used in a pejorative way to refer to altcoins that try to gain benefit from the success of other cryptocurrencies without offering value on their own. So as you journey through the cryptocurrency space, be sure to apply the term shitcoins to only those coins that are scams and deserve it. Otherwise you might end up biased against alternative cryptocurrencies that might in fact become useful one day.