How to identify a shitcoin?
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Shitcoins have a specific pattern that makes them simple to recognise. When a coin launches, there might be some interest in it, but the price generally stays the same. But once investors start to get on board, the price rises dramatically over a short period of time.
While interest in cryptocurrencies is still high, it is unlikely that the creation and promotion of altcoins that may one day be regarded as shitcoins will slow down significantly. While other governments, like Japan, have promoted the usage of cryptocurrencies in a wider market, certain governments, particularly those in South Korea and China, have taken a special interest in outlawing cryptocurrency mining operations.
There is plenty of space for abuse because of the cryptocurrency market, with which investors would find it difficult to draw historical comparisons, and because a sizable portion of investors may not fully comprehend the underlying technology used to administer blockchains. It might be challenging to tell whether a cryptocurrency will succeed or was developed to defraud investors.
Since the introduction of bitcoins in 2009, interest in cryptocurrencies has significantly expanded. Their popularity has attracted companies hoping to use blockchain technology to develop their own altcoins, which are digital assets that borrow heavily from the fundamentals of bitcoin. The number of tokens that will ultimately be made available is normally disclosed by the developers; the supply of bitcoin is limited to 21 million, while the supply of ether is restricted to 18 million per year.
Setting a supply cap results in scarcity since investors know that no more tokens will be produced after a certain point. Theoretically, like with fresh stock issuances, the issuance of more tokens would diminish the value of their holdings.