Cryptocurrency is progressively viewed as the future of money. While such development exhilarates the popular mind, big investors, businessmen, and institutions subsequently joined the force, pitching a considerable stake in cryptocurrencies like Bitcoin and Ethereum. Crypto and blockchain investor Jon Lee shares, "The success of bitcoin has enticed businesses and developers looking to jump into blockchain technology to launch their cryptocurrencies and tokens. Many such coins, which launched after bitcoin's popularity, wanted to sail the favorable wind and derive fad value and traction from common people who fear missing out on premium bitcoin success." Any dead coin that carries no value is broadly called a shitcoin. Jon Lee tells us if they are worthless or otherwise.
Since blockchain empowers anyone to launch a cryptocurrency, this paves the way for creating a new currency now and then. Detractors complain of shitcoins falling short of intrinsic value or defined purpose. That, they are mere imitations without innovation and yield no conspicuous result. "It is true, but equally true is the fact that the existence of shitcoins proclaims a more democratic, decentralized, and free space that crypto seeks to build. Going by this central defining logic of the blockchain world, shitcoins are certainly going to be around as long as blockchain exists," says Jon.
Though crypto experts often downplay shitcoins as copycats of established crypto coins, there is more to it, as Lee put it. One of the prime appeals of shitcoins is their relatively low price. When a new coin is launched at a penny price, investors jump on board, pumping money which causes the price to rise within a short span. Soon, investors dump their holdings to capitalize on short-term gains.
This trend is just an extension of penny stock reality to cryptos and will thrive in a get-rich-quick ecosystem. Nowadays, products in the market have their metaverse avatar. In perpetuation of the metaverse business, the businesses launch their native tokens. These native tokens (shitcoins) often are at the center of community interaction, transaction, and reward mechanisms in the given ecosystem, opines Jon Lee.
Blockchain propagates as the antithesis of any monopoly of power or authority. It is only natural that shitcoins counterpoint this monopoly and keep diversity alive in the crypto space. However, "people must understand that a shitcoin is like an extremely high-risk casino. If people consider playing any shitcoins, they must also consider losing all the principal. There are no fundamentals besides being driven by hype. It's not something I would suggest to play around with, but people need liquidity when the market goes into the bear," Jon Lee says.
