- “Shitcoin” is commonly used for altcoins or cryptocurrencies after Bitcoin gained popularity.
- CoinMarketCap’s recent report states that there are more than 19,000 cryptocurrencies available.
“Shitcoin” is a term often used for cryptocurrencies without a purpose or value, like meme tokens and scams. And since there are currently cryptocurrencies with almost every ridiculous name possible, one is named Shitcoin.
Shitcoin is a cryptocurrency designed as a parody of the many useless cryptocurrencies, and it stays true to its theme. The white paper is referred to as toilet paper, the token’s social media handle is “Shitcoin69,” and non-fungible tokens (NFTs) are referred to as non-fungible turds.
You can learn more about this highly unique cryptocurrency in this guide.
How Do Shitcoins Run?
With the debut of Bitcoin, cryptocurrency interest increased, as did the supply of alternative cryptocurrencies. Many companies want blockchain technology to establish their money and capitalize on Bitcoin’s success.
Although Bitcoin has a fixed supply of 21 million coins, most other cryptocurrencies do not.
However, there needs to be a scarcity element, which is present in cryptocurrencies with set supply limits, which often results in diminished investor confidence in new digital coins compared to established options like Bitcoin.
This discrepancy arises because a larger and potentially unrestricted supply erodes the value of existing investor holdings.
Consequently, cryptocurrencies with substantial supplies inevitably exhibit lower token prices. The token value increase depends on strong demand to offset the extra supply.
What Distinguishes Shitcoin From Other Cryptocurrencies?
According to the Shitcoin white paper/toilet paper, it was designed for two purposes:
- A means of exchanging fungible assets.
- A creative outlet for creating and selling NFTs.
While there are similar projects, Shitcoin distinguishes itself through its distinct tokenomics. At its core, the Shitcoin ecosystem introduces another cryptocurrency token called Baby Shitcoin (CRYPTO: BBYSTC).
When buying Shitcoin, there’s a 6% fee, and a 9% fee applies when selling. These fees are divided to support development efforts, increase market liquidity, and reward holders of Baby Shitcoin.
Baby Shitcoin, in turn, implements its transaction fees of 6% for both buying and selling. These fees contribute to augmenting liquidity and providing rewards to Baby Shitcoin holders.
Should You Consider Investing in Shitcoins?
Thinking about investing in shitcoins? Here are some points to consider:
Pros: Quick Profits
Shitcoins can offer fast profits. Some have gained a lot in just a few months. For instance, FLOKI went up around 300% in 2023. This could be a way to get started in the cryptocurrency world.
Cons: High Risk
Keep in mind that shitcoins come with risks. Their value can change dramatically, and they’re named “shitcoins” because they usually lack real worth. People buy and sell them based on trends and popularity. Only invest money you’re okay with losing, as you might make less than expected.
So, before jumping in, consider the potential rewards and the big risks.
Conclusion
The term “shitcoin” may be lighthearted, but it underscores the need for careful research and thoughtful decision-making. While the term might be used humorously, the risks associated with shitcoins are serious.
When engaging with cryptocurrencies, exercise caution and conduct thorough research. Look for truly innovative, useful, and open projects about what they’re doing.
By staying informed and cautious, enthusiasts and investors can make more informed decisions and contribute to the growth and legitimacy of the cryptocurrency ecosystem.
