Ever since we’ve witnessed the advent and evolution of blockchain technology, a growing number of cryptocurrencies have come into the market. And with thousands of cryptocurrencies in existence, there’s no doubt that cryptocurrency has become a rising phenomenon.
However, with its wide adoption come coins created as memes or even jokes with a lack of a roadmap or particular purpose. This is where we introduce you to shitcoins. You may have come across this term quite a lot, given its strange name. Today, let us take you through what these coins are, along with the top 5 shitcoins in the market.
What are Shitcoins?
A cryptocurrency with little to no value, a discernible model, or a particular purpose is called Shitcoin.
On a side note, Bitcoin maximalists have a subjective opinion of shitcoins. They often use this slang to refer to altcoins (all coins other than Bitcoin) and regard them as inferior compared to Bitcoin.
Shitocoins are also categorized as being diminished or depreciating coins, coins with no technological and reasonable value, coins with low trading volumes and liquidity, or coins that don’t make it in the top 100 list.
Magic Internet Money
The first one on our list is Magic Internet Money that ranks at #2764 on CoinMarketCap, and its price as of this writing is about $1. Its coin – the MIM token – is a stable coin that can be exchanged for any other traditional stable coin in the market. Why is it a shitcoin? Very little is known about its founding team, its support on exchanges is low, and quite frankly – it has formidable competition that renders it irrelevant.
SafeMoon is a DeFi (Decentralized Finance) token. It was launched on 8th March of 2021. According to CoinMarketCap, SafeMoon ranks at #207 in the crypto market as of writing, with a capitalization capital of more than $1 billion.
The token was built on the Binance Smart Chain blockchain. Its protocol has three functions: reflection, liquidity pool acquisition, and burn.
This cryptocurrency made it in the news due to celebs like Logan Paul and rapper Lil Yachty showing interest. Its tagline – ‘Safely to the Moon’ – too has contributed to its popularity. SafeMoon will soon launch its NFT and marketplace along with a coin launchpad via which users can make their cryptocurrencies.
Investing in SafeMoon may be riskier than other shitcoins due to its low liquidity.
The next crypto token on our list is Dogelon Mars. A spin and fork of the infamous Dogecoin. This altcoin followed the steps of Dogecoin as a joke and eventually became a popular cryptocurrency.
Dogelon Mars (ELON) was released in April of 2021, while Dogecoin was peaking in popularity. This was also the time where many new cryptos that replicated Dogecoin emerged. One of these was ELON, and it claimed to undo the damage caused by scam tokens.
In terms of market cap, Dogelon Mar’s token stands at #115 and has a market cap of $895 million in the crypto market as of 30th November.
Baby Doge Coin
This shitcoin needs no introduction due to its prominent name that suggests it’s another clone of Dogecoin. The coin has been billed as being the progeny of its father- the Dogecoin.
As we have mentioned before, many cryptocurrencies were inspired by the idea of Dogecoin after it reported massive price jumps and, of course, the support of Elon Musk himself. Baby Dogecoin witnessed a 1,000% increase in its price just two weeks after its launch in June 2021. Such a spike in the price of Baby Dogecoin can be attributed to Elon Musk’s tweets regarding the cryptocurrency. And in just 24 hours after his tweet, the cost of the cryptocurrency shot up by 228.3%.
Upon research, you’ll find that this token states to have an improved transaction speed compared to the original meme coin.
The last shitcoin on the list is Floki Inu. Its name is inspired by Elon Musk’s pet dog named Floki. Looking at its rank in the crypto market, Floki Inu stands at position #2792 on CoinMarketCap in November of 2021.
The official Floki website says that supporters of the Shiba Inu made this cryptocurrency. Nonetheless, this shitcoin gained significant profits in a span of only a few months. You can thank another one of Musk’s tweets, showcasing his puppy ‘Floki’ for this increase.
Regardless, this did not last long, as cryptocurrencies, especially meme coins, are known to fluctuate a lot in the crypto market.
However, this token is associated with various projects that make it a bit different from your usual shitcoin. Floki is officially partnered with millions of Garden Movements to solve food insecurity issues, run by Kimbal Musk (brother of Elon Musk).
Floki also has many upcoming flagship projects, including an education platform called Floki Inuversity, NFT, a metaverse NFT gaming Valhalla, and Flokiplaces (merchandise marketplace).
How to identify shitcoins
Coming to the end of our list, we’ll leave you with a few signs that may help you identify a shitcoin. These include:
- A website or white paper that is identical to other cryptocurrencies.
- Low Liquidity
- Coins with no functionalities
- Suspicious developer(s)
To wrap up, these were some of the top shitcoins that have surged in volumes due to sudden popularity. A common trend among many shitcoins is that they are simple replicas of well-known meme coins such as Dogecoin. These tokens generally gain popularity after getting hyped by social media trends or endorsements by celebrities. Essentially, shitcoins are bound to be volatile and have a similar tendency to meme coins. What’s your viewpoint on shitcoins? Are they worth it? Comment down below!Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.