What is a Shitcoin and How to Hrofit from it. - Crypto Academy / S5W8 - Homework post for @nane15
There is a particular city in Nigeria where you one can get a lookalike of virtually everything that has ever been produced especially hard ward, spare parts, clothes and shoes.
This topic by Prof. @nane15 reminds me of this city because the so called shit coins are imitations of the well established and functional digital currencies that are already in existence. Surely, the crytopcurrency industry has its own set of unscrupulous tendencies to deal with.
Explain your understanding of what a Shitcoin is.
A shitcoin in a sense refer to a digital currency which has very little or no monetary value. These coins are usually without any real investment base, no support groups and without specific focus and purpose.
In a sense, shitcoin is sometimes used in a generic sense to represent all the subsequent crytopcurrencies created after Bitcoin.
From the combination of words used to form this name, it is very obvious what the idea is about. Often, the things addressed as shit are things that are worthless, irritating or totally unacceptable.
Most crytopcurrency assets are given the tagged coins. Thus, putting this two words together, we can infer that shitcoins are those cryptocurrencies that are not considered to valuable and qualitative.
Many shitcoins usually have their fixed based on speculation rather than on any concrete criteria. Shitcoins are characterized by higher degrees of volatility with abrupt fluctuations even more than is present with cryptocurrencies generally. The value attached to shitcoins are not based on any tangible fundamentals aside from their sheer existence.
A digital currency which is experiencing diminishing value and having no no technological and reasonable value and also having low trading volumes and liquidity is most times put into the class of shitcoins.
Do you think it is possible to profit from investing in Shitcoins?
From the little research I have done and from the knowledge exposed in the lesson, I am of the believe that an investor can generate profit from shitcoins. So, I am affirmative that it is possible to profit from shitcoins.
In the world today, we have had a lot of shitcoins created over the years. Though in reality, most shitcoins do not turn out well as investment choice, some of them have become very successful projects even without specific purpose or support base.
The very popular Dogecoin for instance had its value skyrocket massively sometime last year just because of the influence of a prominent personality in person of Elon Musk. In this kind of situation, holders of the currency will be in ecstatic moods.
Recently, the Wakanda Inu project launched made a lot of people millionaires or even better. The surge in the value of the token was splendid.
Taking these into consideration, it is evident that shitcoins can bring profit even though this is highly subjected to chance and speculative abilities of the investor.
List advantages and disadvantages of investing in Shitcoins.
Looking at shitcoins, the saying that there is nothing without advantages that has no disadvantages and vice versa becomes very true. Even though widely dreaded for investment, the performance of a good number is shitcoins cannot be disputed or discredited.
So, I will go ahead to highlight some major advantages and disadvantages of these kind of coins.
ADVANTAGES
There are opportunities for small investors to own assets with the low cost of most shitcoins.
Based on sentiments and acceptability of the public, some shitcoins go ahead to be very successful and yield excellent returns for investors.
Many units of a shitcoin can be purchased at minimal cost.
Shitcoins prevent very viable options for short term investments.
DISADVANTAGES
Shitcoins have high propensity of turning out to be mischievous projects designed to defraud and swindle investors of their funds.
The absence of structure and fundamentals makes it difficult to assess these coins ans conduct proper analysis on them.
It is only investors with large capital and large holdings that can really benefit from the opportunities offered by shitcoins.
Most shitcoins do not have any bases of credibility or authenticity.
The number of shitcoins that have gone on to become successful is is not much. This means that their chances of success is slim.
A whole lot of uncertainties and instabilities are present with shitcoins.
An investor cannot embark on long term investment in these kind of coins.
Of at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.
As I have already stated as one of the disadvantages of shitcoins, the chances of these coins failing or turning out to be total scams are high. Over the years, this has happened severally especially with the upsurge of interest in cryptocurrencies by most people.
Some of these shitcoins projects that have turned out as scams include:
unix
Meta finance
Baby doge BNB
Golden shiba
Deku inu
shiba swap
Raca Dao
Bitbull
Squid2
Queen Shiba
Squid 2(SQUID)
I would love to begin from this one because of how popular this was. Most of us were really thrilled with the Squid Game movie series that when this coin came out it, the excitement was massive.
Squid token was created on binance smart chart (BCS BEP-20).At present, the price is $0. It has a fixed total supply of 996,841,175,935.
This coin turned out to be a scam. First l, many holders were unable to sell the token while others could not cash out.
A total of $3.36 million was reported invested by investors on tis coin. Prior to the disappearance of the liquidity pool, the coin had risen to about $3000 in value.
- Baby doge BNB
Baby doge BNB token was also created on binance smart chart (BCS BEP-20). Public release of the token took place on oct-23-2021. A fixed total supply of 100,000,000 was made for the token.
Creators of this token mimicked Dogecoin. With the fancy name and relation to the successful parent token Dogecoin, it is no wonder people flocked to make investments in this project. This supposed alliance and rapid patronage made the value of this token to climb speedily. Subsequently, it turned out to be a scam.
- Raca Dao
Among one of the most recent shitcoin scams is this one. With the new year being just few days old, it is alarming to see the number of scam projects that have already been deployed.
Rava Dao was launched on 4th January, 2022 about four days ago. At present, it has price of $0. The total supply of the token had been fixed at 500,000,000,000. It is a token created on the binance smart chart (BCS BEP-20). For one, the white paper of this project is not tenable.
A message on this website reads:
WARNING: This token has been flagged due to evidence of a bug, hack, or scam. If this is incorrect please Contact.
This is a clear indication of the status of this token.
I personally believe the advent of smart contracts and the ease with which tokens can be created is a major contributor to the proliferation of scam projects in the cryptocurrency industry.
Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)
As have already been established, a number of shitcoins have gone on to experience tremendous growth and success. Some are even rivaling some well-structured tokens in terms of rank, market capitalization and value.
Dogecoin and Shiba Inu led the way of successful shitcoins but others have also towed similar paths.
Some of the excellent shitcoins projects include:
- Safemoon
- Baby Cake
- Dogelon Mars
- Samoyed coin
- kishu inu
- Floki inu
I will go ahead to give a brief highlight of some of these tokens.
- Floki inu
Naturally, there has always been an affinity between humans and dogs. As can be seen, there are many tokens that have adopted the dog theme. Floki Inu is one of the recent projects that has also taken this path as a meme coin. Floki Inu was inspired by Elon musk's pet dog named floki.
The project was championes by a group group of developers, well known as cryptocurrency influencers. They are Peta byte capital, Sabre and Brown whale. The team is lead by jackie xu. The project is often referred to as a movement with fans calling themselves Floki Vikings.
Floki inu is both ERC-20 token and Bep20 token meaning it can be transacted on Binance Smart chain as well as on Ethereum chain.
From coinmarket cap the current price of floki inu is $0.0000751 USD. It has a 24hr trading volume of $20,352,944. At present, the coin is listed on 196,649 watchlists. The price of the token has reduced by 12.90% in the last 24 hours.
Floki Inu currently ranks at #2842. Fully diluted market capitalization of Floki Inu stands at $1,510,681,470.61. The maximum fixed supply is pegged at 20,000,000,000,000 FLOKI coins. Though Floki Inu has reduced by 78.02% from its all time high value of $0.0003437, it has gained massively with 377570.37% increase from its all time low value of $0.00000002.
- Dogelon Mars
This is yet another shitcoin that has its roots to the doge coin. From its name, it is obvious what the idea of the coin is about. There is a combination of Dogecoin, Elon Musk and Moon.
This suggests that the token is aiming for the success and predigree of Dogecoin while employing the popularity and crytopcurrency support of Elon Musk to shoot its value as high as the moon and into mars. This is probably with interest to the billionaire's exploits in the planet.
The founders of the project are unknown. The project uses the fictional story of the dog Dogelon and its adventure in mars as background. Dogelon Mars is an ERC-20 token on Polygon and Ethereum.
It was launched in April 2021. It is ranked at #109 currently. Dogelon Mars can be found non 379,279 watchlists. The current price of this token is $0.000001335 having declined by 4.03% over that last 24 hours. The market capitalization of Dogelon Mars stands at $742,649,678.84. The maximum fixed supply is pegged at 1,000,000,000,000,000 ELON coins.
- Samoyed Coin
Samoyed coin is a community owned meme coin founded by Sam Bankman-fried, the Ceo of alameda research/ FTX and Anotoly Yakovenko who is also the co founder of solana. The name of the coin is probably extracted from their two names.
From coinmarket cap, Samoyedcoin market price today is at $0.03128. Its 24hr trading volume of $3,931,255. At present, the coin is listed on 34,852 watchlists. The price of the token has reduced by 3.03% in the last 24 hours.
Samoyed coin currently ranks at 418. Total market capitalization of Samoyed coin stands at $100,375,549 USD with a circulating supply of 3,202,946,644 SAMO coins. The maximum fixed supply is pegged at 9,238,477,429 SAMO coins.
Though Samoyed Coin has reduced by 87.26% from its all time high value of $0.246, it has gained a whooping 2624.52% from its all time low value of $0.00115.
There is great promise about this coin. Its affiliation with the very successful Solana blockchain is a massive boost. Samoyed Coin has helped to grow Solana's ecosystem. As a meme coin, it has brought fun and entertainment which was not very common in the ecosystem.
Some of the strong points of this token is its possession of high scalability, high speed, low fees, and being a fun cryptocurrency.
Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)
Historical Price Analysis of Floki Inu
I want to take a look at how this currency has performed in terms of price value over time. I will be taking a look at the price chart as well as other statistics.
Historical price data.
The token took off With a price of $0.000005221 at inception on 10th July, 2021.
The price of the token plummeted greatly in the next couple of days to hit an all time low price of $0.00000002326 about 99.5% drop from the launch price.
There was no significant change up until after two months on 16th Sept, 2021 where it rose to $0.00005615, increasing by 975.5% from the start price.
The price rallied about this level and began a sharp rise from the 26th of October, 2021.
This rise continued till the all high price of $ 0.0003359 was attained on the 4th of November, 2021. This was an incredible 6,333.6% rise from the launch price.
Since then, the price has been a a decline till the present time where it has a price of $0.00007567. A drop of over 78% from its all time high but still 1,349.3% higher than the price it started with.
Current price
The pattern of movement of the price of Floki Inu over time.
Some of the major moves and points hit by the price over time.
In the past seven days and past 24 hours, the token has been serious bearish pressures.
7 day price chart
Last 24 hours price chart.
Based on your previous analysis, what do you think will be the evolution of the price of the cryptocurrency for this year? Be creative when explaining.
From my historical analysis, it can be seen that this project is a resilient one. From its slow start, it has managed to stay afloat.
At present, it is performing far above how it started. I have read the principle and also seen that the market always correct itself. That is, the market never moves in one direction constantly, there will always be a reversal.
From the present condition, the token has been declining for that past two months leading from last year into this.
If we were to use technical indicators like relative strength index or Stochastic Oscillator, we will discover that the price is currently in the over sold region which signals potential reversal into an uptrend.
Indicators in over-sold region indicating pending reversal.
Thus for this year, there is a high probability that the price will begin to climb. Considering the strong support base of this token and the projects that are being programmed about it, there is no doubt that the token will attract more investors.
The three flagship utility projects
- An NFT gaming metaverse called Valhalla
- An NFT and merchandise marketplace called FlokiPlaces
- A content and education platform called Floki Inuversity
are sure to bring more users to the purchase the token and transact with it. This will increase the price and market capitalization once these are fully launched.
The partnership of the token with CryptoCart has given its holders the option to purchase items at over 1,700 stores through a partnership with CryptoCart (CC). This integration of mainstream usage of the currency is very likely going to boost its value as other similar partnerships are being proposed.
Considering all these, it is safe to conclude that the price of Floki Inu will likely experience a positive evolution this year which will see its price increase positively.
The development of a crytopcurrency asset with intention to serve productive and profitable purposes has always been very strategic, well-researched and carefully executed. However, it is not all of these asset or projects that pay attention to these aspects.
Many assets have been created with neither a particular focus, plan or backing of any kind. Some were created as mockery to the big currencies. It is this kind of creation that made the name shitcoins to be evolved to represent such projects.
With these shit coins, hackers, fraudsters and other mischievous individuals have caused so many to lose significant amount of funds. Some of these shitcoins have gone from bad to worse in their market performance. Others have turn out to be complete shams.
However, it is on record that a number of these have gone on to be very successful and profitable. Some have had their values increased by thousands of percentage climbing into top positions on ranking sites. This has raised concerns in some quarters about the justification of the name shitcoin given to these kinds of projects.
Be that as it may, many investors still dread the idea of investing in shitcoins and many are very skeptical about them. This is quite understandable considering the high risk and uncertainties associated with them. But for those with a keen sense of speculation and research they can take advantage of these shitcoins to make huge profits. This lesson by Prof. @nane15 was quite interesting.
Hello Prof. @nane15. My post is yet to be graded. Kindly look into it. Thank you