Information is power, and this is important in cryptocurrency investment. It is important to know, learn and understand all that is entailed in the market. This is important before investing or adopting a particular coin. One of the most controversial topics in this ecosystem is Shitcoins. This name sounds disgusting and off-putting, which is why many people do not follow this category. The few who invest in this field without the knowledge end up losing a lot of money due to poor investment decisions. This article offers insights and knowledge on Shitcoins to help investors from Africa, and the rest of the world make wise decisions.
Behind the name “Shitcoins”
The first thing people should know is the meaning of this word. Different coins are Shitcoins for different reasons. Which include:
If it does not serve any purpose
When developers create a coin, its existence should have a purpose. Its purpose is on the White Paper on the coins’ website. Some Shitcoins, on the other hand, are coins that have no particular use or purpose in the crypto market. A good way to explain this is to check the following examples: Filecoin might be one of the struggling coins in the market due to the crypto crash, but the coin’s purpose was to offer a decentralised storage system to act as a storage facility for people and organisations across the globe. Theta is also a dying coin meant to be a blockchain-powered network to improve streaming. Some Shitcoins, on the other hand, do not have any particular purpose.
If it’s a meme coin
Meme refers to jokes people make online for a laugh. In this situation, the developed coins are a joke to one thing or the other. The best example of this is Dodge Coin. The coin was a joke to the cryptocurrency tokens and adopters during its development. The funniest part is that the Dodge coin has risen to become one of the most adopted cryptocurrencies by many organisations and influencers. These include billionaire and cryptocurrency supporter Elon Musk.
If it is undervalued
Many investors invest in coins that have a value of over $1 billion. These undervalued tokens are Shitcoins due to their high probability of losing value and collapsing. This has made it hard for coins that do not make it to the 1 billion mark to gain investors.
Investors should thus beware when investing in Shitcoins. They should investigate the coins they want to invest in to identify in which of the three categories the Shitcoins lie. Although this is the case, investors can try their luck by investing in Initial Coin Offerings.