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r/CryptoCurrencySee Comment

If you spend a day in crypto, you will hear the term “shitcoins” multiple times, with everyone telling you not to invest in them. Everyone seems to hate them, yet their number and market values keep increasing every day. As old ones die or lose their initial hype, new ones with different tokenomics replace them and the show continues. In this post, I will be sharing with you everything you need to know about shitcoins and why you should not invest in them. We will be looking at what qualifies a cryptocurrency as a shitcoin and examples of shitcoins out there. After reading this post, you would be able to identify a shitcoin by yourself and decide whether to gamble your money with them or not. What are shitcoins? Shitcoins are cryptocurrencies with no value or good economic purpose for existing. They have no noble purposes and are created to be meme (joke) coins or pumped and dumped by the founders. Characteristics of shitcoins Below are the four major characteristics of shitcoins: 1. No value Most shitcoins have no value. Their prices or market capitalization are negligible due to little to no investors interest. This lack of value is usually because the developers do not have enough hype power and marketing resources to attract new investors or the coin has been pumped and dumped already. This is what the price of some of your shitcoins look like “$0.000000000055”. 2. No real-world use cases Some shitcoins have good marketcap and reasonable prices but no real-world use cases. Many of them will want to claim legitimate use cases such as being a payment currency but the world does not need another crypto CURRENCY. So also is the over 11,000 different cryptocurrencies in the market. They all can be used as payment for goods and services. So any new cryptocurrency whose only reason for being in existence is to be “yet another currency” is a shitcoin. 3. Structured like Ponzi schemes Most shitcoins function like Ponzi schemes. Their value is dependent on new investors buying the coin and their tokenomics are designed in such a way to: discourage selling, redistribute money from new to old investors. make the founders rich. The system favours those who buy into the scheme early and take out their capital with any profit made before the hype dies. 4. Insanely high supply Furthermore, shitcoins mostly have infinite or insanely high token supply. Some of them come with a total supply in the billions, trillions, quadrillions, quintillions, sextillion, and infinity. And because their prices are so low, you can buy billions of them with a small amount. This seems to encourage people to buy the shitcoins, as it makes them feel good with that much many tokens in their wallets. Eventually, everyone who didn’t cash out during the initial pump will be left holding a heavy bag of worthless tokens. I know some of them try to burn tokens to create an illusion of lower supply but that’s just a gimmick and part of the hype mechanics. Wouldn’t it have been easier to create a low supply ab initio than trying to burn tokens later? 5. Pump and dump Shitcoins pumps (and dump) the hardest. Early on, shitcoins pump really hard because of their promises of quick money and the team’s hype power and marketing efforts. So new people rush in to be the first to put their money and hope to double or even x100 their investment. Some lucky early birds may do exactly that. But eventually, the founders and early whales will dump their coins on the market and everything will begin crashing faster than it went up. It’s normal to see a shitcoin pumps 6,000% within 3 days and dump 99% in 3 hours or less. This is the roller coaster some suckers paid for and got. Shitcoins have no staying power. They cannot sustain their value let alone continue their ridiculous price increases. That’s why if you ever catch yourself with a shitcoin and it’s pumping, the best thing to do is sell it immediately. Then patiently wait for the dump that follows to buy more of it with part of the money if you wish to continue playing the game. But don’t be surprised if it keeps dumping forever after you have bought the dip. Why? Because the bottom for a shitcoin is ZERO ($0). So never assume you’re buying the bottom. A shitcoin has no price floor. Yes, I know some shitcoins like Doge can pump and dump repeatedly over many years, but those are exceptions. It doesn’t make them less of a shitcoin. Others may not have a strong enough community to keep resurrecting their shitcoins after the first few dumps. 6. Failed projects Some coins started with strong use cases and a good business model and were even backed by a spirited team. However, shits happen and the project fails to deliver and eventually turns into a shitcoin. Either the team abandons the project or they have lost track so much that they’re merely surviving. Doing one thing or the other to give the project a sign of life and hope. Good examples of this type of shitcoins are Storiqa (STQ) and Money Token (IMT). I was invested in these projects, back in those days but they’re now technically dead and special shitcoins. These ones, you may have to forget about your money or cut your losses and move on to something productive.

Mentions:#ZERO#STQ#IMT
r/CryptoCurrencySee Comment

This can't be overemphasised. I fomoed into coin like NEOG, CRM and STQ during the early periods without thorough research and lost. Now I know better. Just got on FORM after doing a thorough research. Its a low cap coin that's quite cheap at the moment and has the potential to grow. It's currently listed on MEXC

Mentions:#CRM#STQ#MEXC
r/CryptoCurrencySee Comment

I hate that people are actually pumping ELEC. It's already known that the project is dead - Same for STQ, their value shouldn't be higher than zero

Mentions:#ELEC#STQ