What is a Shitcoin and how to profit from it. - Steemit Crypto Academy - S5W8 - Homework post for @nane15
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Hey there my name is Kenechukwu Ogbuishi and today we would be discussing on shit coin, join me as we dive into this week’s beginner course from our wonderful professor @nane15
Explain your understanding of what a Shitcoin is.
Do you think it is possible to profit from investing in Shitcoins?
List advantages and disadvantages of investing in Shitcoins.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
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.
Conclusion
Q1.Explain your understanding of what a Shitcoin is.
A shit coin as the name implies is a token that doesn”t have value and has no usability. They are said to be Altcoins apart from bitcoin. With the coming and development of BTC many other crypto-based businesses have created their own token but they remain worthless till investors take interest in it.
A particular shit coin may be able to do well in the market if it has a bit of usefulness in the blockchain this will allow the price of the coin to rise depending on the particular activity it may be needed for whether gaming, gas fee etc. Before investing in a shit coin you are advised to know more about the token and it’s uses in the blockchain and for you to see profits from a shit coin, you are advised to buy the token before it has been launched on any major exchange. It is easy for newbies into the cryptocurrency space to fall victim to pump and dump tokens but these are what should be looked out for before investing in a shit coin.
Characteristics | Meaning |
|---|---|
| Number of Holders | Before investing in a shit coin you should check how many people are holding that particular token and who is the person with highest percentage of the token, if the producers are the highest holders most likely the token is a pump and dump token |
| Function of the Token | the token your willing to invest in should have a bit of usefulness in the blockchain |
| Developers and owners | Before investing in a shit coin you should browse and be a part of there online community and the developers should known and there identities should not be anonymous, most likely projects with stable online communities do well |
| Liquidity | Before throwing money into any shit coin make sure that the market capitalization is at least $30,000 |
| Whitepaper | A whitepaper contains all the necessary information for a particular token before investing. You would have to read the whitepaper to see what the token is said to do in the nearest future. |
Q2.Do you think it is possible to profit from investing in Shitcoins?
Yes, I would consider investing in shit coins as a good investment but before investing the information you know about the project is important. In the other question I gave characteristics to look out for before investing in shit coins but I would like to add that in 2021 I was among the lucky few that got the chance to invest in shiba inu before it was finally listed on any exchange. I invested a sum of $10 and brought the coin through pancake swap.
After a while the coin did a 100X and gave me the sum of $200 in profit. As an investor the aim of doing business is to make profit but while investing in shit coins it is advised to invest for a short period and sell at a price higher than which the token was bought.
The way it is easy to earn from investing in shit coin, it is also easy to lose when investing in shit coins, there many coins out there that are set up just to draw investors to the project. Once the owners have been aid to make a lot of profit they pull out their profits. Make sure you do good research about any project you're willing to throw money at. Once the owners pull their profits, the other holders of the coin are left with a worthless token.
Q.3 List advantages and disadvantages of investing in Shitcoins.
| Advantages | Disadvantages |
|---|---|
| Shit coin provide profit after a given shorter time | Shit coin can not be considered as a long term investment |
| Shit Coins provide huge gains for investors | Investing in the wrong token will lead to loss of funds |
| Shit coins are bought at a very low price and invest are able to buy as many as possible | Shit Coins is a medium that is used to perform a lot of scams and frauds |
| Because of the cheap prices of shit coin it is advised to invest in as many projects you believe in, so in cases of losses you may still gain from other shit coins you may be holding | Invest the amount of money you are willing to lose, due to unforeseen circumstances. |
Q.4Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
Shitcoins may also be run as scams just collected profit from investors and leave holders with a worthless token, here are the shitcoins that have been a scam, they include;
- Squid Game Token
- Golden Shiba
- Deku inu
Deku inu is a token based on an anime superhero character, the token is said to run on a decentralized payment system that gives back 3% of its profit or loss to investors. It is run on the ERC-20 network, it was created to help run programmable payment and was listed on Uniswap, Paraswap Ethereum on December 23, 2021. The total supply was said to be at 1,000,000,000,000 DEKU. The current price of DEKU is $0. The Contract Address is 0x00e76361d45707507db7bdeb7dd2c0f5c1c3fa6d
This is a token that was 6th of January 2021, it is run on a BEP20 network, the token is said to run on a decentralized payment system that uses fiat based currencies to run programmable payment. The total supply is at 1,000,000,000,000,000$ Golden Shiba and Circulation Supply 1,000,000,000,000,000$ Golden Shiba, but it seems to trade at $0 at the time of making this post. The contract is 0xcc1c53c89C1a4dA79F4391A06D669c20a5f4FfD5.
This is a token that was popularized based on a Japanese series about people that are forced to play a game show to their deaths. The token was launched on 11th of December, 2021. The total supply is at 100,000,000,000 SGT and circulating supply at 100,000,000,000 SGT buy it currently trades at $0. The contract address is 0xe44ac70e0b751bc7871351eccbef9428b49cd9cf.
All these tokens are listed as scams, that is why investing in shitcoins is risky, the market is so unpredictable that almost everyone is able to create a token and run away with profit.
Q.5 Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
This is a shitcoin that gave popularity after the establishment of Doge coin, it is based from Elon Musk doge coin, and they seem to have his support this made the coin to be able to do approximately 1000%, when it comes to shit coins in the market a big name behind a coin will cause a striking shift in the market, the supposed purpose of the token is to increase speed of the transaction time and rewarding investors with a percentage of each commission for each transaction that undergo. This token has seen many followers believing in the project but it is still developing. The founders have chosen not to release their identities but the known owner of the project is Christian Campisi, founder of Pawz.com. He was identified as a great figure in providing for pets and animals in need. The project is based on Binance smart chain therefore it allows users to enjoy low transaction rates.
According to Coinmarketcap, baby doge is ranked at 2819, with a significant market value of $0.00000000384 with a market cap of $ 1,697,588,137.33. It was launched on the Ethereum and Binance smart chain network under the following contract addresses;
0xAC57De9C1A09FeC648E93EB98875B212DB0d460B
0xc748673057861a797275cd8a068abb95a902e8de
Safe Mars is a token launched on the Binance smart chain network on March 13, 2021 with a total supply of 1,000,000,000,000,000. It functions basically by adding a 4% tax fee per transaction undertaken. 2% of the tax is said to be redisturbed to Safemars holders therefore holders will see increase in there wallets just for holding the token.
The other remaining 2% is added to the general liquidity of the token significantly improving the price. Because the token is on a Binance smart chain network users will enjoy low transaction fees.
According to Coinmarketcap the market value of this token is $0.00000004261 with a market capitalization of $ 42,667,603.66.
Q.6 Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
For this question I would be analysis Safe Mars token.
On the 5th of April 2021, the price of this token was at $0.000000089700 as seen above on the line labelled I, then the pricw was seen to produce a strong bullish trend at 19th of April, 2021 we then saw the price of the token rise to $0.00000039 shown by the line labelled II. From the month of April to May there was seen to be correction causing price to go back down to 0.00000024 on the 4th of May 2021 labelled III.
We then noticed that price after correction went up again to about 0.00000131 on the 11th of may 2021 a labelled as IV. This was given to be it's all time high. After we started to see price fall but it still gave a small rise in 29th October 2021 to $0.00000023 it was labelled as V on the price chart. The summary is that this token has seen good rise in prices but has also been stable for long period.
Q.7Based 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.
Firstly based on the price of Safemars it is possible to able to buy as much as possible because the price is still stable and in correction. Once many traders begin to invest in this token it will make the price to increase and give long term holders a chance to benefit from the token.
However the price of this token started in an upward trend before the correction, where it remained stable. This trend formed by the stable coin is almost at its end, therefore we are expected to see another upward trend very soon.
The online community for this token seems to be stable and they have good management. It is also run on the Binance smart chain therefore traders will trade with reduce transaction fees.
Conclusion
Shitcoin are created for no particular reason. They are tokens that can produce profits in a blink of an eye and you can also lose funds as quickly too. Before investing in any shit coin you are advised to do an extensive research by reading the white paper and checking who are the highest owners of the token. To successful invest in shitcoins the key thing is information, the right information can make you very rich.
I would like to thank Professor @nane15 for this wonderful assignment and I hope to keep on learning from Steemit Crypto Academy. Thank you and God bless.
Can you recommend me some shit coins to invest in?
Invest in metaverse tokens.........it's the future.