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Yes, Shitcoins are a Thing

shitcoin

The latest craze in crypto-currencies takes us down a road many thought wouldn't be
possible. No- I’m not talking about all-time highs in BTC and ETH. I’m also not talking
about the shift to mass adoption with mainstream trading apps fuelling the boom.
What I'm referring to is a seasonal change in the markets, otherwise known as
ALT-season. Alt-season is basically a fluctuational cycle of money being pumped out of
the “Stable coins” (Generally the top 10-15 crypto’s at any given time), and being
pumped into lower market cap coins for the potential of massive gains if said coin gains
enough traction.

This Alt season seems a bit different than others. The recent boom in super low market
cap projects has catapulted “Shitcoin” into the lexicon of ever-expanding crypto
vocabulary.

They're called what coins?

Most “shitcoins” are fairly new, thus giving many early adopters of said shitcoin to
possibly reap the benefits of a booming crypto market that has never seen this much
money injected into it. EVER.

With all that money being introduced, it's no wonder that some are profiting hundreds if
not thousands of percentage points on their original investments. All this action breeds
growth- not only market-wise, but also technology-wise. With the development of new
networks that can make cryptocurrency much more efficient in its use, many projects
also develop with high hopes of revolutionizing how transactions on the blockchain are
made.

Most of these projects are shunned as “shitcoins” due to extremely low market cap
volume, and how seemingly anyone with some coding skills can create a shitcoin.
Another clue as to whether a coin can be deemed shitcoin, is the limited number of
exchanges offering it. Not to mention many of these exchanges may not be trustworthy.
This opens the doors to a lot of possible shady-ness by fly-by-night coins, something
the Crypto community at large wants no part of.

The 'shitty' side of crypto

Those early adopters, some in the know- some blindly hoping on a moonshot, both
have something in common. Money, and the cojones to gamble on something that may
have only been established days ago. Many have seen incredible gains in just a matter
of hours if not minutes.

But in this truly wild wild west ecosystem, there’s a snake in the grass: The Rugpull. As
its name implies, the rug pull is set up to implode a coin intentionally by its creators after
they pull out millions of profit from under its investor’s feet. It’s already happened a few
times during this recent bull run- truly the shitty side of crypto.

As with ALL types of investments regardless of risk, it’s best to always do your due
diligence and make sure you believe in what you’re investing in and that you are being
responsible and can afford said investment.

David Gonzalez

Author: David Gonzalez

Digital Dave is from South Florida and has 17+ years of experience in the fields he loves to write about: finance, crypto and sports betting.

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