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

This post is intended for professor @nane15, because this is a job post given by him.

1. Explain your understanding of what Shitcoin is.

Shitcoin is synonymous with coin memes, but it should be noted that not all memes token are without foundation because there are some memes coin that have clear projects. So what is the true meaning of Shitcoin, I will review it for you with a simple and concise understanding but easy to understand.

With the spread of crypto assets like Bitcoin, various crypto assets were created, and also many Shitcoins associated with them were born. In fact, this trend has become increasingly popular recently after the widespread use of cryptocurrencies and of course because of the popularity achieved by Dogecoin. Actually, it is not difficult to define Shitcoin, because basically all coins that do not have a clear foundation or in other words have no purpose at all for their creation, then these can be called Shitcoins. The Shitcoin is a low market cap currency that is generally not recognized by many.

There are many crypto assets that can be called Shitcoins, but among them, "Dogecoin" which was developed by software engineer Billy Markus from Poland in 2014 can be said to be one of the most famous. In January 2021, Mr. Elon Musk announced his support for Dogecoin, and the price soared, and in April of the same year, the market cap grew enormously. It has become the center of attention from all over the world.

The Dogecoin is simply a copy of the Bitcoin code and decorated with the Shiba Inu icon, and early in its development, Marcus himself called it "for silliness". No ideas, future plans, etc. Everything was purely created just to make fun of bitcoin which was popular at the time, so this is the first Shitcoin in the world that has survived to date.

Shitcoin is a derogatory term used to insult coins that are created without a clear purpose and have no use at all. Shitcoin is technically an altcoin, but over time, the fundamentals become flawed and become obsolete. These coins have little value and have no clear purpose. They rely heavily on misleading marketing, especially through social media micro-influencer networks.

2. In your opinion, is it possible to profit from investing in Shitcoin?

Many people have made huge profits thanks to the skyrocketing price of Shitcoin, especially Doge coins, Shiba Inu, Safemoon, etc, so it is only natural that Shitcoin has gained its own popularity this year, this is also closely related to uploads from public figures like Elon Musk and Snoop Dogg in promoting it.

So in my personal opinion it is very possible to make a profit by investing in Shitcoin, but there are several things that must be considered before investing in Shitcoin because Shitcoin may disappear at any time or be removed from circulation. So there needs to be consideration first and see the market opportunity for Shitcoin, don't wait for the price to spike like Dogecoin because it only happens once in a lifetime or you could say the chance is only 1%.

Even with Shitcoin we can achieve high returns, but it also has a high risk aspect. So investing in Shitcoin is like luck, it may or not work. Many people invest in Shitcoin because of the possibility that its price will rise sharply. Shitcoins tend to have low circulation and holdings due to their low original price.

Therefore, when well-known influencers or virtual currency investors raise their voices on social media, the price rises rapidly, there have been many cases like this and the most popular is of course Dogecoin. Therefore, if we invest in Shitcoin, there is a possibility that the price will rise sharply, so there are many cases where we can get big profits.

Shitcoin has the potential to make huge profits, so it is possible to become a billionaire all at once, but there are some downsides too. Since Shitcoin was originally an unpopular coin, there is not much to look forward to in the future. Therefore, there is also a risk of Shitcoin suddenly losing its value. When investing in Shitcoin, it is advisable to understand the high risk and high return aspects before investing.

So in conclusion, getting a profit from investing in Shitcoin is very possible but also comes with a very high risk.

3. State the advantages and disadvantages of investing in Shitcoin.

As mentioned above, there are several advantages and disadvantages to investing. For that, I will conclude 3 advantages and 3 disadvantages of investing in Shitcoin.

The three advantages of junk coins are as follows:

• Prices are likely to rise sharply.
• We can have a lot of coins because the price is very low per coin.
• Many types of Shitcoins that can be purchased with limited capital.

I will explain one by one of the three advantages.

As I described above, the advantage of investing in junk coins is of course because there is a possibility that the price will rise sharply. This is closely related to promotions by influencers who have bought a lot of coins, then the price will increase drastically and can even reach 1000%.

Real examples can be seen in Dogecoin, Shiba Inu, Safemoon, Dogelonmart, and many others who have received support from influencers and world leaders.

Shitcoin has a very low coin price, so we can save a lot of coins. Virtual currencies like Bitcoin have a high market cap, so the price of a single coin is huge/expensive.

It is still possible to hold small amounts of BTC, but we need a lot of money to make big profits with BTC. Therefore, we need a large amount of capital to invest in BTC. While Shitcoin is not like that, because the price is very cheap, we can store Shitcoins in large amounts with only 100 USD or less.

Being able to buy many types of Shitcoin with small capital is also an advantage of Shitcoin. Some Shitcoins can be purchased for 100 USD to get hundreds or millions of Shitcoins. So if we have 5000 USD, then we can store more than 50 different Shitcoins.

Also, because the investment is diversified, if we can choose the appropriate Shitcoin, then we can expect a large return on some Shitcoin we buy or even all of them. Keeping multiple types of Shitcoins also increases the chances of making a profit, by enabling a balanced investment as it is possible that a loss on one Shitcoin can be covered by the profit of another Shitcoin.

The three main disadvantages of investing in Shitcoin are:

• There is a possibility that the price will drop and lose its value.
• Exchange can delete it at any time.
• Most likely scam.

Shitcoins have the advantage of rapidly rising in price, but there is also the possibility that they will fall and lose value. If there is just one tweet or article published by an influencer in reviewing the negative things from Shitcoin, then this will likely make the price of Shitcoin drop drastically.

Another disadvantage of Shitcoin is that its handling in virtual currency exchanges can be phased out in some cases. When dealing with Shitcoins with little liquidity and low demand, there is no advantage from an exchange point of view as users do not trade easily.

If an exchange removes it from their platform, the liquidity of the coin will be lower, so there is a possibility that the coin's value will decrease even more.

Shitcoins also have the disadvantage that they tend to cheat. There are different types of Shitcoins that are developed solely for the purpose of extorting users' money, or coins that have no real status.

The proof can be seen in the Squid Coin, which is in fact a scam coin that has cost a lot of people. So it is very important when we invest in Shitcoin, we have to pay close attention to the coin.

4. From at least 3 examples of Shitcoins that have been scammed, also explain what is included in them.

I will write a list of some of the biggest and craziest coin scams that have ever happened, including:

• Squid Coin
• SaveTheKids
• Golden Shiba
• Floki Finance
• AstroNewYear
• ShibaSwap
• Deku Inu

Now I will discuss 3 Shitcoin projects, we will see how they commit fraud, attract investors' attention, trap people, then walk away with a pile of money in their suitcase.

• Contracts: 0xd016175f7b05903074b4f0779546301caf6b3599
• Total Supply: 100,000,000,000 SQDC
• Circulating Supply: 100,000,000,000 SQDC
• Deployed: 22 October 2021

Squid Coin deployed on the binance smart chain which is a BEP-20 token. Maybe this is the most severe fraud and is still warm in the minds of crypto lovers, how not, squid coin started a very mature plan to deceive everyone.

This token was launched at the end of October last year (22/10/2021), which took advantage of the popularity of the Netflix series from South Korea, Squid Game. We have to admit that, the originator of Squid coin does have a very mature plan in carrying out his actions, he knows that thanks to the popularity of the Squid Game series will boost the coin in just a matter of days.

They created the Squid token as well as the online game to further convince people that it is the same token as the Squid Game. If in the Squid Game series, people who make it through the deadly game will get a big prize, the Squid coin project is also made the same, but it doesn't involve a deadly game and the winner will get some money.

They created 6 different online games, the entry fee for one game varies. For example Game level 1 has an entry fee of around $ 4.56 or the equivalent of 456 SQUID tokens at that time, for Game level 2 the entry fee is different and the prizes are also bigger.

Long story short, the price of Squid coin skyrocketed just 6 days after its launch. At the beginning of its release, Squid coin was priced at around $0.012 per coin, but 6 days later the price of Squid coin has become $2.85 per coin. What happened next was beyond people's expectations, because on the 7th day the price of SQUID immediately fell to around $0.0028. Users and investors started to panic, and what they feared really happened because after that the user could no longer sell his tokens on the Pancakeswap exchange platform, even the site and all Squid coin social media disappeared without a trace.

• Contracts: 0xb83b68c47548efcab745e994a87c035f9af7513b
• Total Supply: 1,000,000,000 KIDS
• Circulating Supply: 100,000,000,000 KIDS
• Deployed: 18 September 2021

It can be said that 2021 was a very profitable year for cryptocurrency investors and the year with the best cryptocurrency price developments so far, but there will also be a lot of scams in 2021 with scam coins or exchange site break-ins.

SaveTheKid is the next token scam using a pump and dump strategy from influencers. This coin is deployed on the binance smart chain which is a BEP-20 token on 18/09/2021. No other example of influencer-hypnotized cryptocurrency can match what's happening in the SaveTheKids token.

Initially, FaZe Clan members Kay, Teeqo, Jarvis, and Nikan, as well as YouTuber RiceGum started a campaign to pump charity-based crypto tokens. They promote it on various social media, like Facebook, Twitter, YouTube, reddit, etc. The promotions that are carried out are very simple and attract everyone's empathy, because they promise success and will also help raise money for the neglected children out there.

Some suspicions began to arise after that because these developers and influencers began to stop their promotion on social media, this made investors worried. Furthermore, what happened was that the developers went off-track, so the first time the SaveTheKids token went public, its price was immediately crushed due to a massive sell-off from early investors who had already held onto the coin.

• Contracts: 0x8189deeb43ae04d3f3d94d1fd47805388fba01f2
• Total Supply: 988,523,478 GSHIB
• Circulating Supply: 988,523,478 GSHIB
• Deployed: 16 December 2021

Maybe this is a bad Shitcoin, because it's only been a while since this coin has been declared a scam, I don't get more information about this coin. How many investors have been harmed, and what strategies did the coin maker use to carry out his evil deeds.

However, I believe this coin is trying to take advantage of the popularity that the Shiba Inu coin is currently gaining. Coin makers believe it may believe it will succeed in deceiving many people by taking advantage of a similar name to Shiba Inu and trying to attract many investors and run away after.

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

Dogelonmars is a Shitcoin that has been around for a long time and now has a very large community. This coin was first launched on 23/04/2021, at a very, very low price. But now the price has experienced a drastic increase.

There are no details at all about this coin, because the founder just created a fairly simple site by displaying Dogelonmars prices, comics, a list of links to join the community, and start buying coins. Yes, that's all we can see on the dogelonmars main site.

Because it already has a large and strong community base, Dogelonmars doesn't need to worry anymore because it is already listed on various major exchanges in the world, such as Huobi, Poloniex, and KuCoin.

This token was created on the Ethereum network, here are the details:

• Contracts: 0x761d38e5ddf6ccf6cf7c55759d5210750b5d60f3
• Circulating Supply : 555,778.89B ELON
• Max Supply: 1,000,000,000,000,000

HOGE is a memecoin created by deflation technique. Whenever a transaction occurs with HOGE, 2% of the transaction is allocated 1% each to Hoge coin holders and the remaining 1% will be burned from the total supply. This increases the scarcity of HOGE coins circulating in the market.

Therefore, every time the HOGE coin is used, its value is predicted to increase due to a decrease in supply (deflation), as well as being distributed to all users holding this coin. Thus, every holder of the HOGE coin will get an incentive every time someone transacts with this coin. Hoge is also a community-managed DeFi coin with an ERC-20 smart contract and a limited deflationary supply. In addition, in the near future, HOGE will soon be listed on 5 well-known exchanges such as Binance, kucoin, coinbase, and huobi.

HOGE was released on 15/02/2021 only as a deflation coin to be different from most other cryptocurrencies especially meme coins, even this coin has no project clarity at all, no initial plans, but over time the HOGE founding team has a broader vision for pushing the project further into charity for the coin to have a clear use as well as a utility coin. HOGE was one of the first DeFi memecoins to be successfully audited by Certi.

HOGE started printing NFTs for its users, as well as sponsoring esports. And they have worked with many other companies and platforms. This is indeed a Shitcoin at the beginning of its release, but now this coin has even become a real coin with many features and uses.

The HOGE team also works with coin holders to save the world's animals, you can search on Twitter with the hashtag #HogeSavesTheAnimals, where the community donates their HOGE coins so they can be used to save the world's animals. Based on the articles I read, the amount of HOGE coins that have been raised is more than $20,000 to help animals. The HOGE team is also developing HogeGameLabs which is a dApp game and is currently in the refinement stage.

This coin was created on the Ethereum network, here are the full statistics:

• Contracts: 0xfad45e47083e4607302aa43c65fb3106f1cd7607
• Circulating Supply : 402.28B HOGE
• Max Supply: 1,000,000,000,000
• Total Supply: 402,276,464,81

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

Now we will look at the historical price of the Dogelon mars from time to time to date, for that I will use the information provided by the Coinmarketcap site.

Dogelon mars was released on April 23, 2021, at the time of its first release, the price of this coin was very low at around $0.000000004281 (note point A). Then the popularity of Dogelonmars increased drastically, causing the market to experience a bullish trend, to be precise on May 12, 2021 the price broke to the level of $0.00000001917 (point B).

After that, the price of Dogelon experienced a very severe correction, even making the price drop drastically to a lower level than when the coin was released. After surviving about 2 and a half months, the price flew back and was even recorded as the highest price so far, this happened on July 31, 2021 at a price of $0.000004185 (point C).

After posting all-time highs, the bear market returned to Mars Dogelon, this time to a more severe level and recorded all-time lows. The same thing is repeated again, which takes about 2 and a half months until the price of Dogelon returns to the top. Precisely on October 31, 2021, at that time the price returned to the level of $0.000002336 (point D).

After that, there was no more market crash as happened in the middle of last year. From November last year to the present, the price of the mars Dogelon has never exceeded $0.000002336 and has never fallen below $0.0000007500. Meanwhile, today, this second, the price of the Mars Dogelon is $0.000001318.

The price has started to stabilize and has not experienced a correction as severe as the middle of last year, overall the price has risen very well and is holding up well at this time thanks to the help of the already very large community.

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.

This is honestly the most difficult question for me, because it is not easy to predict cryptocurrencies for a whole year. It is even more difficult to analyze Shitcoin, because it involves all aspects, such as community strength, promotion, and also the overall growth of the cryptocurrency.

If we look at the chart above, there are many possibilities that will happen to Dogelon mars. As we know, that any coin can be bearish or bullish, but so far the mars Dogelon has never really come back close to its all-time high.

The indicators are not very helpful for doing annual analysis, but from there we can get a little picture that this coin has been in the range market for a long time and a bullish trend is very likely to occur, even if the aggregate is larger than bearish.

However this does not fully work 100%, because the annual analysis involves many things. As I said above, the price of cryptocurrencies so far is still very volatile and has not got the right fundamentals to defend its price from various issues.

Especially Shitcoin, whose market price is very dependent on the general price increase of other cryptocurrencies. If this year the cryptocurrency has a massive increase in transactions and the price goes up, almost 70% of Shitcoins will also go up. And many other issues that will either increase the price of Shitcoin or bring it down, such as the strength of the community, its fanatical supporters, etc.

But overall, I believe that the price of Mars Dogelon will experience a bullish trend this year, considering that cryptocurrency prices are always repeated, so there is a high possibility that a bullish trend will occur after a long correction.

Conclusion

Shitcoins are identical to coin memes, but not all coin memes are Shitcoins because there are some Shitcoins that turn into real coins with clear projects. Last year, Shitcoin became a coin that was highly sought after by traders and investors to invest in Shitcoin because it was able to quickly repatriate capital even though the risk was very large.

Investing in Shitcoin is indeed very risky, but it is also possible to get big profits from Shitcoin. But we must pay attention to many things first before investing. Investing in Shitcoin does have its own advantages and disadvantages.

For now, there are many Shitcoins circulating in the market, some of which have gone out of business and some are still surviving in the market. There are many factors that cause Shitcoin to disappear from circulation, among them because it is designed specifically for fraud. For Shitcoins that survive, they don't have a clear project, but they are made with no intention of deceiving and there is a large community behind them that supports these Shitcoins so they don't go out of business.

Overall, this year is predicted to be the year of cryptocurrency. Even though almost all cryptocurrencies are currently experiencing a bearish period, for me this is just a measure to run fast.