Home Cryptocurrency What is a Shitcoin?

What is a Shitcoin?

by Admin

One of the most used terms in the world of cryptocurrency is Shitcoin. This is how all useless cryptocurrencies on the market are labeled.

What are Shitcoins for?

Their task is to fill the pockets of selected users by manipulating the cryptocurrency market and exploiting the inexperience of newcomers.

Today we will take a look at one of the varieties of cryptocurrency scams – pump groups or channels in messengers such as Telegram, Discord, and other platforms where these tricksters operate. This type of fraud can be compared to the good old “I’ll teach you how to beat the casino” scam, where only the casino and the referral link owner won. In this case, the winnings remain only for the administrator of the group.

Such channels often offer to massively raise the price of a rare and cheap altcoin on exchanges or decentralized exchanges. Let’s understand what they offer and what their real intentions are.

Two ways in which such channels work:

  1. A Shitcoin Pump on decentralized exchanges, such as PancakeSwap, can consist of an admin eventually pulling all liquidity, after which subscribers are stranded, unable to sell their coins and losing their investment.
  2. In the case of a more sustained Shitcoins Pump on centralized exchanges such as Binance, the admin opens a long position, then reports the signal in his channel, and eventually a scam occurs: overview of Shitcoins Pump scams.

Conclusion: the admin receives a decent amount of money from this pump, given that some of the purchases were made by himself to fuel the interest of the gullible audience. Not bad so from one pump, given that gullible people are constantly coming from new and new purchases of advertising.

How to recognize a Shitcoin?

  • Listings on websites: The cryptocurrency should be listed on coinmarketcap or coingecko. If it is not listed on either of these sites, the currency is most likely in a pyramid scheme.
  • Spikes: A currency that is extremely volatile is also a sign of shithcoin. Developers are eager to increase its price to make a profit and then leave the ship sinking.
  • Media and Youtubers: Cryptocurrency pays to be promoted. Just because your favorite blogger tells you about it doesn’t mean there’s actually a profit to be made. And his subscribers sell at a minus or small plus, most are also losing money.

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