What is a Shitcoin and how to profit from it. - Crypto Academy / S5W8 - Homework post for nane15

Created by me (@b-naj), using PixelLab

Warm greetings to all. Happy new year 2022!

QUESTION 1

Explain your understanding of what a Shitcoin is.

The word Shitcoin when broken into separate words, give Shit and Coin; with Shit referring to worthless or of very little significance, and Coin referring to currency/token.

As such, the name Shitcoin is used to refer to any token/cryptocurrency that has no certainty or shows no significant working progress/project that can attest for self sustainability, thus can be referred to as being of insignificant worth in real value. Most individuals engage in the introduction of numerous shitcoins, with most resulting to scams via the act of misleading investors of an already established and significant valued cryptocurrency, through creating copies of these high valued coins for mischievous acts.

Due to the immense breakthrough in the crypto world backdated from when bitcoin was introduced, individuals have greatly engaged in introduction/creation of new coins with most evolving to have a say in the crypto market. But just like any profitable line of business project, many coins result to being a mere mirage today while others are still being introduced on a daily basis. Such coins that crashes or don't amount to any significant worth in real value after being introduced, ared best termed as Shitcoins.
Nonetheless, it is worth noting that not all Shitcoins remain Shitcoins, some evolve and take their place in the crypto market once they gain significant worth.
There is no detailed specifications on the characteristics on the worth range that defines if a cryptocurrency is a shitcoin or not. As such, it is solely determined by an individual/investor depending on what the investor's perspective on how much a shitcoin's significant worth should range. Some investors classify shitcoins with respect to their significant worth at the time of research, market ranking, project stability, their instinct on whether it's a scam or not, and many more factors.

Every investor has his/her own criteria on what determines which cryptocurrency falls under the term shitcoin. Reasons and criteria differs with varying investors.

QUESTION 2

Do you think it is possible to profit from investing in Shitcoins?

Before answering this question, i would like to point out that investing in an given shitcoin is based on mere speculations of an individual that the said coin will gain significant worth in real value within the time frame assumed by the investor.
Also, i made mention of the fact that not all shitcoins stay worthless, some gain significant value, with over 5,000 times profit on the invested capital while it was still a shitcoin. From my own point of view, shitcoins are preferably the best to invest in, if you are willing to take calculated risks since they yield massive profit relative to invested capital, once they gain significant worth in real value.
A very good and popular example is the Shiba Inu coin whose profit % has skyrocketed since its launch as a shitcoin in August 2020.

So, my answer is YES. Investing in a shitcoin is very profitable, although i recommend that investigations and research on shitcoins should be thoroughly done, and if possible, briefly monitor the said shitcoin before rushing into an investment.

QUESTION 3

List advantages and disadvantages of investing in Shitcoins.

Advantages

• It makes available the means for investors who are ready to take very huge risk for equally huge profits.
• Investments are short term, and are very good for anyone smart enough to hold the right shitcoin at the right moment.
• Doesn't require a huge capital to venture into a calculated investment.
• Compared to an already established coin, shitcoins can very easily take up an invested capital to a million dollar worth with over a thousand times profit on initial capital.
• So many shitcoins can be held by anyone, especially beginners in the trading world.

Disadvantages

• Investments in shitcoins are not advicible for long term investors.
• There is no guarantee on whether you will make a profit, or even get back all your invested capital.
• There is no assurance/confidence in a shitcoin's project, since its market value mainly depends on anonymous traders with no certainty.
• The risk taken are extremely high and the probability of being scammed is likely to occur.
• Real value is seemingly not accurately predictable since the coins are very unstable in the market.

QUESTION 4

Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.

I'll be talking on the following shitcoins that resulted to being a scam.

• Onecoin
• Mando
• Squid Game Coin

Onecoin

Source

It is worth noting that The Times referred to this scam as One of the biggest in history.

This was actually a ponzi scheme brought about by Bulgaria-based offshore companies (OneCoin Ltd and OneLife Network Ltd). What they did was, they introduced Onecoin as a cryptocurrency in a ponzi scheme, and it was realized later on from their arrangements and past relations to similar schemes linked up with Onecoin.
This scheme was estimated by US prosecutors, to have swindled over 4 billion dollars, with law forces in China being able to retrieve 267.5 million dollars and prosecuting 98 persons.
The scheme was brought to a close with main founder (Ruja Ignatova) gone into hiding, and her brother Konstantin Ignatov taking her place and pleaded guilty in 2019, to money laundering charges, with a maximum sentence of 90years in prison.

Mando coin

The Mando coin was created early last year and was named after the Disney show The Mandalorian, inspired by the Star Wars theme. Disney however warned investors in time saying the coin had no direct relation to their production.
This coin was hyped by a young influencer (Matt Lorion) , who spoke highly of the coin and advised his followers to invest in an ICO for this coin.
The coin received great popularity mainly due to the hype of the young influencer, who had over 1.2 million followers on Tik Tok. Shortly after, the Mando website was closed and the creators made away with all the invested money

. It wasn’t long, however, before Lorion had to issue an apology and a retraction for his followers and an admission that he himself had lost $10,000 on the fake digital currency.

Squid Game Coin

Source

This coin was introduced in the market in relative to the popular South Koean TV series Squid Game, and as such, gained popularity. The coin's value rose up over 310,000% 11 days after its launch, with a value of $2,861. What happened was, there was no sell option for investors to opt out despite the very promising bullish move. The investors thought it wise to cashout, but the creators of this token sold off their holdings rapidly, within 2 weeks of its launch and drained the coin's value. Till date, they are ghosted with all accounts unavailable, both wallets and social.

In as much as this occurred, it is worth noting that so many signs were obvious that this was possibly a scam. Below is a list of some signs:

• The official social accounts (Telegram and Twitter) prohibited comments from users. Only the creators could convey messages on these accounts, it was like a podcast.
• The Squidgame.cash site looked really unprofessional with grammatical and spelling errors.
• An option to sell the coins was made unavailable to holders.

QUESTION 5

Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)

• Baby Doge Coin
• SafeMoon

Baby Doge Coin

Source

This coin was created on July, 2021 with its first recorded price at $0.000000000175. Unlike the Shiba Inu coin, the Baby Doge Coin is based on yield-farming token solely dependent on an integrated smart staking system wherein, money in Baby Doge Coins are added into your wallet as reward for transactions performed on the system. As such, more transactions mean earning more money.
This coin is a meme coin that got massive support from frequent hyping by Elon Musk (Tesla's founder) via tweets, greatly contributed to its growth. Doge Coin is perceived to be the parent coin of Baby Doge Coin, and this coin (Baby Doge Coin).

^{Below is a screenshot and details of the Baby Doge Coin, gotten from CoinMarketCap as of 08/01/2021, 2pm (GMT+1)}

SafeMoon

Source

This is an altcoin which was launched in March, 2021 And worked based on the Binance blockchain Smart Contract. It is a DeFi token with a very catchy slogan phrase "Securely to the Moon".
Itvexperienced a spike in bullish movement on 20/04/2021, with a single token worth $0.00001399 with a 24hour profit percent increase of 99%. Withdrawal (sells) are highly discouraged if done on a daily rate, with a fee of 10% on withdrawal amount. This enables investors to hold onto their tokens.

^{Below is a screenshot and details of the SafeMoon token, gotten from CoinMarketCap as of 08/01/2021, 3pm (GMT+1)}

QUESTION 6

Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)

The screenshot of this chart was taken from the tradingview app

The chart shows the introduction of Baby Doge coin as a recorded token in the crypto world/market, in July 2021.

• It started off at a price of $0.000000000175 per Baby Doge Coin in July, and immediately experienced a bearish trend and moved below $0.000000001000 up until early September 2021.
• It then made a short reversal move (bullish trend) above $0.000000001000, and later made another reversal move (bearish move) below the $0.000000001000 mark, around late September - early October 2021.
• In October, it skyrocketed with a bullish trend to hit an all time high above the $0.000000005000 mark around ending October.
• It then experienced a steep bearish trend up until mid-December 2021, with its value around the $0.000000001500 mark.
• A bullish trend was once more observed as it valued around the $0.000000004800 mark in early January 2022.
• It then observed trend reversal and made a bearish move up until now, hovering at the value $0.000000003209

I believe the sudden drop in value after hitting an all time high was due to the release of tokens by investors to cash out their profits.

QUESTION 7

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 would like to point out first and foremost that the reputable and high valued individual, Elon Musk, is strongly behind the growth of this Baby Doge Coin. As such, he will see to it that the success of this coin is sustainable and/or surpassed even.
• The aspect of this coin being a meme coin is a huge win as it is added to the wallet of any user who carries out a transaction on the blockchain.
• It also has Doge Coin as its parent coin, and as such, can easily tap from the fame and popularity of its parent coin, as a baby coin.

CONCUSION

Upon completion of this home work which was taught by professor @nane15, i have gained a better mastery of what the term Shitcoin is all about, its advantages and disadvantages and how to profit from it. I also gained knowledge on many different shitcoins that resulted to a scam, and also those that made a sharp trend in the crypto market.
Shitcoins can be quite profitable if anticipated rightly by an investor. They can be very unsatisfactory if proper research and analysis are not made thoroughly by an investor.

Much praise goes to professor @nane15 for a well taught lesson. I believe got a perfect understanding, and as such, i say thank you. #club5050