In the world of crypto, it can be very difficult keeping up with every new coin or protocol that pops up everyday. Due to the ‘wild west’ atmosphere of crypto, a term has been crafted to describe a coin with very little - if any - purpose: the ‘shit coin.’ In the simplest of definitions, a shit coin can be described as a coin that possesses no inherent value and is ultimately a vehicle for pure speculation. Shit coins are created everyday, and there are far too many of them to create a comprehensive list. Shit coins typically relate to a popular topic at the time (like Elon Musk or Doge) and hold a very low price due to exorbitant supply, often having too many digits to count. Shit coins usually see a very brief pump, rising in price some exorbitant amount whether it be from a paid YouTube video or some influencer shilling it. There is no rhyme or reason to shit coins, which has made them such an odd occurrence in the now well-known crypto space. 2021 saw Dogecoin rise in price to nearly a dollar, becoming one of the top ten cryptocurrencies by market cap. Another shit coin that has done extremely well is the Shiba Inu coin, which saw gains that eclipsed Doge. Because of these projects’ immense successes, many spin offs were created in attempts to replicate the price appreciation of these basically worthless assets. In the traditional financial markets, companies must go through serious auditing to get listed on the market. Because of the innovations of blockchain technology and smart contracts, shit coins are able to be created at the drop of a hat - it’s that easy. While most (if not all) shit coins ultimately fail on a long enough time horizon, they’re still very interesting and fun to speculate on. Due to their low liquidity on exchanges, it’s often difficult for anyone to make a profit on it, and shit coin creators regularly rug pull their “investors,” sometimes for millions of dollars. Because of the challenges that come with speculating on shit coins, those who are thinking of buying should do their due diligence and avoid putting in large sums of money. There are many opportunities for making gains in the crypto market, and shit coins should generally be avoided unless you really know what you’re doing.
knower
research at reflexivity