REPOST | [What is a Shitcoin and how to profit from it.] - Crypto Academy / S5W8 - Homework post for nane15
Here's the repost of my post with the link and screenshot.
[What is a Shitcoin and how to profit from it.] - Crypto Academy / S5W8 - Homework post for nane15.
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Introduction
Hello to everyone, it's once more an honour to take party in the crypto-academy assignments. This new year, through the wonderful lecture of professor @nane15, I'll be talking about Shitcoin and how to profit from it. Follow me closely as i answer to the questions asked related to this topic.
1. Explain your understanding of what a Shitcoin is.
The bible says in the beginning was the word, in this case I'll begin with the word Shitcoin. What is it all about?, Shitcoin is a compound word formed from the two words, Shit and coin. We all know what we regard to as shit means it is thrash and has no value. Or better still i would say they're those coins that doesn't bring anything to the cryptocurrency world.
Several cryptos have emerged since the conception of Bitcoin. Bitcoin remains for me the father of all cryptos and we have a set of individuals who regard other cryptos other than Bitcoin as Shitcoins. And another set of people believe that if a coin is present in the market, then that coin is surely valuable. But the amazing thing about Shitcoin by definition is that it adds no value to the crypto world. Quite amazing how Shitcoins are created without any project to fulfil.
Most meme coins are Shitcoins and taking an example of the DOGE COIN this coin was created mainly for fun but at the end of the day it gained popularity for a while and had value. This makes us understand that Shitcoins can gain popularity by the way users take it. It can gain popularity by advert by an influential person, but it doesn't still change the fact that it is a Shitcoin because it had no basis for the project.
Every investor must be an expert in speculation if he wants to invest on Shitcoin because of the heavy risk associated to them. So that investor must have a clear understanding of how these coins work and the only way they work is by speculation. Some examples of these coins are; Shiba Inu, Babycake trons, safe moon and BitTorrent just to name a few.
2. Do you think it is possible to profit from investing in Shitcoins?
I believe it's possible to profit from shitcoin investment. But as i said earlier, the investor will have to keep a close look on the market and activities around the coin. The trade of these coins are done on short-term so investors must study the coin well before investing on it.
Investors have the ability to invest in more than 2 Shitcoins so that if everything goes towards the positive direction, it will close the loses gap of the other which didn't go to the right direction because it is hard to find a Shitcoin which will offer a good reward at a certain point in time.
Making a well elaborated and detailed research to know the project developers and the idea behind their actions before investing in the Shitcoin is very important for the investor. This activity will help the said investor to know which Shitcoin to risk on to yield reward
I'll take the example of the Shitcoin, DOGE COIN. This coin was created on the purpose of fun but later in the year 2021 it noticed a boom in the price market because of the tweets of Tesla boss who made mention of the coin. So because of the trend on Twitter and Elon musk's influence, those who invested in this coin made huge profits on doge coins. We can see about this news on CNBC news Source. Below is the tweet Elon musk made.
Image source3. List advantages and disadvantages of investing in Shitcoins.
Like every other coin, there are advantages and disadvantages in investing in them, in the form of a table I'll present to you their differences.
| Advantages | Disadvantages |
|---|---|
| Investors don't need large amounts to invest in since it doesn't need large capital. With just $5 you can have a high amount of shitcoin. | The price of the Shitcoin can drop steeply at anytime and the huge investors will lose |
| Investors can buy as many as they want since the price is low. So you can see an invividual with more than 50,000 Shiba but it's difficult to see someone with 1 BTC. | You can't invest for a long time period so only short term investors have the ability of investing. |
| Investors can make profits rapidly, they can have as high as a 100% profit from the rise of a shitcoin. | It can be a source of scam, many shitcoins have been created just to make people invest their money in it and later on dupe them of their investments. |
| It can serve as a saving method for the funds an investor doesn't want to use for the moment. Saving those funds may bring great profits at the end. | Shitcoins can be very difficult to trade because they're listed only in small exchanges. This makes the investor to stress in looking for a means to exchange in the market. |
4. Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
As i earlier listed as disadvantages, there are many shitcoins which are created as scams and among them are the following, Metafinance, TronClassic(TRXC), Trickle H20, Babe Doge BNB, Queen Shiba, BitBull and Squid 2
1- MetaFinance
This Shitcoin was released on binance smart chain (BSC) and had a total supply of about 1 Billion MetaFinance. But all that was before and right now the price is as low as $0.
Screenshot from thebittimes.com2- TronClassic(TRXC)
In 2008, a shitcoin was created based on the ERC-20 token and was developed with the aim of serving as a sendable and receivable social digital currency. Though it was a great idea, this coin didn't last for long and ended a year after it's conception for unknown reasons. I don't know what to think but my human nature tells me that of the creator of a thing is unknown, then the thing might disappear for unknown reasons.
The author of this coin remains unknown till date but the only rational reason why this coin didn't succeed may be because of the coin in question had a zero (0) liquidity and it's website too shutdown. Ironically Mr anonymous likes his stuff anonymous. Below is the screenshot of this site.
Screenshot from coinops y.com3- BitBull
This Shitcoin was launched on Binance just after the new year began, on the 2nd of January 2022 with a total supply and total circulation of of 10Billion BitBull. Unfortunately despite these huge figures it was reported as a fraud and scam because of the news about hacking which surrounded the project. We can see the details in the screenshot below.
Despite the price of $0.000000006110 and the market cap of $6.11 it is still labelled a scam.
Screenshot from thebittimes.com5. Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Baby Cake
This token was created on July 17th 2021 and it rewards it's huge holders who hold at least 200, 000 Babycake every hour. Since it's creation, it has noticed a rapid growth within this short time thanks to the great influencers who market this project. This coin is the first of it's Kind and there's no copycat yet.
The founder of this token is apparently called Monk.
| Rank | #4803 |
|---|---|
| Price | $0.00001912 |
| Fully diluted capitalization | $1,912,306 |
| Trading volume | $64,960 |
| Max supply | 100,000,000,000 Babycake |
| All time high | $0.01597 |
| All time low | $0.00001953 |
Screenshot from CoinmarketcapAkita Inu
This Ethereum Blockchain built Shitcoin operates on the ERC-20 protocol and was officially launched on February 2021. This coin was inspired by a another shitcoins, called dogecoin and is very much supported by the crypto company called AKITA. This coin has noticed a great boom since it was launched and it has a total supply of 100 Billion AKITA. 50% of this coin is sent to Vitalik Buterin s wallet while the remaining 50% is locked on Uniswap exchange.
At the time i am writing this post, Akita Inu has the following specs.
| Current price | $0.00000129 |
|---|---|
| Trading volume | $2,973,474 |
| Fully diluted capitalization | $128,416,403 |
| All time low | $0.000000005107 (Feb 27, 2021) |
| All time high | $0.00002904 (May 11, 2021) |
| Total supply | 100,000,000,000,000 |
Screenshot from coingecko6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
Below I'll be performing a historical analysis of Akita Inu using the https://www.coingecko.com site. this analysis will be done using a simple graph.
We can observe in our graph where it is labelled (A) that the price of the token was close to $0 because that was when the token was created, on February 2021. Then we notice a minute increase in price towards the end of the month of April to about $0.00006 as shown in (B). After this period we notice a kind of retracement in price within the period of transition from April to May shown by (C)
We then notice at (D), a sharp increase in price within the period of May 11th from $0.00000200 to 0.00001640. After this all time high, towards November ending, the price fall steadily until it arrived a value of $0.000000645 as shown on (E). We then notice another rise towards the end of November, on the 28th which reached a value of $0.00000620 as seen in (F).
From that moment till today, the price of the coin has been steadily falling without interruptions to the current value of $0.00000.129 as shown on the graph at point (G)
Screenshot from Coingecko7. Based on your previous analysis, what do you think will be the development of the price of the cryptocurrency for this year? Be creative when explaining.
I checked carefully how the price of AKITA Inu has been developing and i noticed that it follows the IRI (Impulse Retracement Impulse) movement. And from the principle of this movement, each time the price is at the retracement leg, the next probable move is the impulse movement. Which is the case of this coin. So i suspect in the next week's, this coin will boom. Let's recall the previous screenshot in question 6. We do notice a good pattern from impulse to retracement back to impulse and so on.
It is based on this speculation, this graph below shows how i predict the movement of Akita Inu.
Screenshot from CoingeckoI strongly believe that this coin will notice a boom in price earlier this year if the retracement at G remains constant. I thereby recommend that we incest in this coin.
Conclusion
Shitcoins are great ways of investing and they can make you make a lot of money but there are a lot of factors to take into consideration before engaging into such business ventures, because of the increasing amount of scams in the form of airdrops. It is usually said, "all that glitters is not gold" Investors should be more careful not to fall into the hands of scammers.
This lecture as a whole enlightened me into discovering what shitcoins are and made me understand that they are coins which are "shit" but can make you rich within the blink of an eye. Despite the fact that it can make one rich, it can also ruin someone to the last coin.
And finally i noticed how the shitcoin AKITA Inu could be profitable for any investor in the days to come as thee prediction shows there can be a considerate boom in it's price.
Thanks to professor @nane15, i now know a little more about shitcoins and how to manage airdrops which emerge from all the corners of the earth. I'm grateful for this lecture and I await your review on my post.
Happy new year to all of you.
CC: @nane15