It is very likely that when a cryptocurrency enthusiast is looking for information or new developments in the cryptocurrency ecosystem, they will come across the term Shitcoin, and it may call their attention a little, especially due to the curious name that has been interposed to certain cryptocurrencies.
This new trend may be curious and striking, but it is true that behind this funny name, there is a somewhat derogatory intention because many of the projects are named this way since are copies of Bitcoin. This does not necessarily mean that they are bad projects. Although they do not innovate in any way or change the protocol itself to differentiate it from BTC, this detracts from the project since they make the cryptocurrency one more of the bunch.
To better understand the term Shitcoin, it is necessary to contextualize a bit the panorama that this movement has created. Since the birth of Bitcoin in 2009 hundreds of projects have been created without any innovation value or that seek to improve Blockchain technology. What these new projects are looking for is a quick enrichment based on the adoption of crypto drawing the attention of many investors. The bad thing is that since they are not supported by anything serious, their value tends to collapse after a brief moment of rising.
As we mentioned before, the term Shitcoin is used to name all those useless cryptocurrencies that do not offer anything new within the ecosystems in the market. Usually, these cryptos are born without an established objective and are a very basic copy of some other cryptocurrency. ; this tells us that it is a Shitcoin.
It is important when identifying a junk coin, the main red flag is when they uncontrollably advertise their project and promise revolutionary advances or profitability that are sometimes too absurd, usually, these types of projects end up in the sack of Shitcoins.
Since most major cryptocurrencies are open source, it is relatively easy to copy the project or part of the project; Although it is very positive that these projects are open-source, this is a possible disadvantage because it helps create hundreds and hundreds of new cryptocurrencies. These, rather than help the cryptocurrency ecosystem grow, cause its discredit since they are used to carry out scams or sell smoke.
Something that should be very clear is that we cannot have a prejudice toward all cryptocurrencies, and that is that there are people within the crypto world for whom all cryptocurrencies are Shitcoins accept Bitcoin. We cannot say that these people are wrong or right since this definition is somewhat subjective and will depend on the image that a person has of a cryptocurrency.
However, we cannot deny that there have been cryptocurrencies that have helped the financial system evolve, such as Ethereum with the creation of smart contracts and the entry of Dapps; some stable coins like Tether and USD Coin, and some others that have improved the true anonymity that Bitcoin was so lacking as ZCash did, that is why it is so important to know how to identify a Shitcoin of a really promising project.
Again, we remember that the label that we usually give something is sometimes accompanied by a bit of our own opinion as an individual, and the same thing happens with the term Shitcoin. But it is also true that there are certain characteristics that many of the cryptocurrencies share that are called junk currencies by most cryptocurrency enthusiasts, these characteristics are:
The website where the project is born has a poor design or is designed without any effort, or uses free domains.
It lacks a work plan or a Roadmap with defined points or goals that reflect a guarantee of continuity in the project.
The Whitepaper turns out to be an almost exact copy of another project, with very technical wording and with examples that are not at all simple, or in the worst case, it does not have a Whitepaper.
They are a carbon copy of the Bitcoin code and do not innovate in any aspect of the cryptocurrency.
Sometimes the projects that combine some or all of these characteristics are considered Shitcoin, since they seek to generate an early investment, offer to promise a high-level project, and once they profit from the first investors they disappear, leaving an abandoned project that does not contribute to the cryptocurrency ecosystem and hundreds of people scammed.
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Currently, you cannot have any control over the creation of new cryptocurrency or Blockchain projects; but there are indeed platforms such as large Exchanges or P2P platforms such as Ccoins that make a compilation of the most serious cryptocurrencies or cryptocurrency projects with greater projection in the crypto ecosystem.
Of course not! Currently, new blockchain projects continue to appear and if it is true that most of them are considered Shitcoins, you have to know how to find those projects that have an established objective and will later contribute to the development of this ecosystem.
No, at Ccoins, we are always committed to including in our catalog only cryptocurrencies or tokens that come from large-scale projects or that have a solid track record in recent years, thus ensuring our users only trade with the best of the best.