What Are Shit Coins? Everything You Need to Know
Cryptocurrencies have changed the financial world, popular culture, investment, and innovation, but let’s just say that some coins are “built differently”.
Among the thousands of cryptocurrencies available today, a subset has earned the wholly unflattering label of “shit coins”.
So, what is a shit coin? Why do they matter (if at all) to the overall crypto space?
Let’s not dive into this topic.
Instead, we’ll take a look from a distance - we don’t want to get any shit coin on our shoes.
What Is a Shit Coin?
A shit coin is a cryptocurrency considered to have zero, or almost zero real value or potential for long-term growth.
The term originated in the early days of cryptocurrency as a derogatory slang for coins with no intrinsic value, utility, or community, in contrast to market leaders like Bitcoin or Ethereum.
It has become synonymous with “scam coins” and “dead coins”, although technically, they are a bit different.
There’s no universal definition or definitive criteria for shit coins, but experienced traders (who have seen their fair share of them) would likely agree on these traits:
Lack of a clear use case or real-world application
No credible team or development roadmap
Excessive volatility and susceptibility to manipulation
Built on top of meme culture or social media hype rather than sound technology (but executed very poorly, as opposed to some of the great meme coins)
Premined by developers who stand to profit regardless of the coin's success
There’s an ethical debate too. Some argue that calling something a "shit coin" is subjective and often driven by personal bias or tribalism within different crypto communities.
Key opinion leaders and rivals in crypto may attempt to harm another project by labeling a shit coin, even if it’s not completely true.
Why Do People Invest in Shit Coins?
Let’s put it down to human nature. Many people love gambling - even if the odds are stacked against you, there’s still a small chance you can win big.
That’s why, despite a poor reputation among those who understand cryptocurrency best, shit coins still pull in funds from investors.
Hype and Speculation: Twitter, Reddit, Telegram, and Discord have become four places that cryptocurrency investors head to for information.
They’ll find a mix of hype and FUD (fear, uncertainty, doubt), and this social sentiment is a real driving force for buying power. Investors want to time their purchases of any investment well (buy low, sell high)
Potential for Gainz: Sure, shit coins look risky, but once in a blue moon, one of them delivers astronomical returns for little apparent reason, creating overnight millionaires. It’s probably this narrative that continues to lure in plucky investors
FOMO (Fear of Missing Out): Letting a trend or big opportunity pass you by is irritating to even the most cautious investor, and it’s a clear reason why all logic goes out of the window when it comes to taking risks on dubious coins
Low Entry Cost: Shit coins cost very little, making them accessible to small-scale investors who especially pursue high-risk, high-reward opportunities, and are aware of the odds against them
Remember, like gambling, trading can be addictive, so be careful with shit coins and don’t risk what you can’t afford to lose.
Shit Coins Vs Other Cryptocurrencies
It’s important to be able to tell the difference between shit coins and altcoins, so here’s a little table to help:
When you think of altcoins like Ethereum, Solana, and Ripple, you almost immediately know that they’re aiming to solve real-world problems and drive mass adoption of blockchain technologies.
Shit coins, however, rarely offer any meaningful contribution to the ecosystem.
Best (or Most Infamous) Shit Coins
Most shit coins you will have never heard, because they stayed… well, shit.
Occasionally, a shit coin does get a lot of attention, but usually for different reasons.
Here are a few:
Dogecoin (DOGE): Originally a shit coin and joke, it became significant to crypto meme culture and popular with Elon Musk and his huge online following. Its market cap is now around $50bn (yes, with a b).
Safemoon (SAFEMOON): A notorious shit coin that used misleading marketing tactics to promise high returns (and never delivered them).
Bitconnect (BCC): Once a top 20 cryptocurrency which turned out to be a Ponzi scheme. The community gathered to “send it to zero”, giving it the shit coin status it deserved
Onecoin: This infamous crypto scam disguised MLM scheme took millions from thousands of people and is known as one of the shittest coins ever (actually the coin never even made it to market)
Let’s move on - this list could go on forever, especially with the rise of easy token launchers that let anyone create a cryptocurrency in just minutes.
How to Spot a Shit Coin
It’s not that straight-forward to immediately recognize a shit coin, especially if you’re new to digital assets.
So, we put together a shit coin checklist to make things easier:
Unrealistic promises
Lack of transparency
Community-aligned FUD
Unsustainable tokenomics
More hype than substance
No roadmap
Pre-mined tokens
Vague whitepaper
Anonymous team
Rug pull association
Great, now you know how to spot a shit coin and can reference this list if you’re in doubt.
Are Shit Coins Good to Trade?
Hmm, finding the answer is going to require some careful consideration on your part, but ultimately it comes down to your risk tolerance and trading goals.
Pros of Shit Coins
High Potential Returns: During bull runs, some people will experience massive gains from shit coins, with lucrative opportunities there for those willing take the gamble
Accessibility: Low entry costs are appealing to smaller retail traders looking for quick profits
Cons of 💩Coins :
Extreme Volatility: Prices fluctuate wildly within hours making it difficult to predict movements
Scams / Fraud Prevalence / Rug Pulls: These are all common and lead to a total or almost-total loss of funds
Lack Utility: The long term viability is questionable and the absence of real world applications or technological advancements should be enough of a red flag
If you can handle extreme risk and get to grips with swing trading, you might find success in this space, otherwise, proceed with absolute caution!
Final Thoughts on Shit Coins
Congrats, now you know what a shit coin is.
Looking to navigate the choppy seas of trading lesser known altcoins?
Consider leveraging the best industry tools, like BONKbot’s solana trading bot, built right into Telegram for ease of convenience and with filters and safeguards in place to handle high-risk investment opportunities without getting burned.