Introduction

Good evening stemains,
It is a great privilege to be part of this community and a thing of joy to learn from renowned professors here.

I won't fail to say happy new year to my fellow stemains, I'm glad we all made it to 2022.

In this post, I'll be doing justice to the assignment of one of our renowned professor in the person of nane15 on the subject "shitcoin and how to profit from it".

Home work

1. Explain your understanding of what a Shitcoin is.

2. Do you think it is possible to profit from investing in Shitcoins?

3. List advantages and disadvantages of investing in Shitcoins.

4. List at least 3 examples of Shitcoin that have been a scam, also explain what they consisted of.

5. Explain at least two examples of Shitcoin that have been successful and are currently keeping it. (Other than Dogecoin or Shibainu.)

6. Perform a historical analysis of the prices of any of the cryptocurrencies that you chose for the previous question. (Use screenshots.)

7. Based on your previous analysis, what do you think will be the development of the price of the cryptocurrency for this year? Be creative when explaining.

Question 1

Shitcoins are coins that don't have any value yet or that doesn't have use case.
The word shitcoin is derived from two different word shit and coin.

Shitcoins as I earlier stated are coins that doesn't have value or use. Shitcoins were created without any definite aim.

Study have shown that for a coin to be created, the whitepaper should state what purpose the coin stand to serve to the general public and how they intend achieving their set down goal, thus the coins use case. But in some cases people tend to create coins probably when they are practicing what they learnt about coin creation and ave no definite purpose of forming or creating the coin, such coins are referred to as shitcoins.

Many people think that any other coin apart from bitcoin and ethereum are shitcoins. Remember I said earlier that any coin that have no definite use case attached to its creation is a shicoin, so to this purpose I can say that bitcoin is a shicoin.

Due to the above reason, people are of the opinion that no coin should be completely tagged a shitcoin because most of them are been listed on exchanges as they see that as a use case.
Examples of such coins are Doge coin,safemoon, safemars, safegoat, muskswap token, Babycake, Shiba Inu etc.

Investing in shitcoin requires a very high level of research by the investor or the person in question.
A trader is not advised to go into shitcoin investment without thorough investigation and research about the coin.

The research includes going through the coin's white papers and the platform in which the token is deployed. By so doing, the trader will know what he/she is signing up for.

Question 2

There is a saying that goes "the delligent shall eat the good of the land" this is applicable in the case of shitcoins. Those people that gave their time to researching about a particular shitcoin, will definitely know the best time to buy and also when to sell.

Being a big boy in the market can also give you greater chance of making lots of money in shitcoin investment, in the sense that you as a whale can add liquidity to a shicoin by buying large quantity of the coin leading to a bullish rally in the coin and then it will attract people to buying the coin and when you've made enough profit you can exit the market.

Because shicoin trading is more or less a short term investment, it is advised that traders should be at alert as to know when they should exit the market.

Early birds in a shitcoin makes huge profits especially when they exit together with the whales in the market.
So, you can make reasonable profit investing in shitcoin especially when you do your research and analysis.

Question 3

Shitcoin investment, just like any other investment out there have both advantages and disadvantages.
Some of the advantages and disadvantages are;

Advantages Of Investing In Shitcoins

• Quick profit making: because shitcoin investment are fast return investment, a trader can make a reasonable amount of money from investing properly and exiting the market just on time.

• Accumulation of large volume: due to the cheap price of shitcoin, it gives room for a trader to hold a large amount of the coin.

• Keeps you in control of the market: as a whale in a shitcoin market, you can move the market to whichever direction of your choice

Disadvantages Of Investing In Shitcoins

• Sudden decrease in the price: because shitcoins have no use case, an individual can add liquidity to the market just to make his own profit, and if you're unlucky and didn't exit the market on time it will lead to losses.

• High rate of fraud: some persons can just create a shitcoin just to extort people of minting fees and at the end of the day the shitcoin will be removed from the market thereby scamming the masses.

• Not ideal for long term investment: because shitcoins have no use case, investing in it for long term is a big fat risk that doesn't worth it most of the time.

Question 4

Below are some cryptocurrencies that have been scam;

• Noshit coin
• kick token
• Banana bucks

Noshit coin

Source

Noshit is a shitcoin launched on december 2021 and some of its information are;

• Market cap - $724,359
• Volume - $7,389
• Volume/market cap - 0.01004
• Circulating supply - 100,000,000.08 noshit
• Total supply - 100,000,000,000,000,000

Kick token

Source

Kick token was launched on the 1 of june 2017 and some information about kick token is listed below;

• Market cap - $3,614,353
• Volume - $142,732
• Volume/market cap - 0.03888
• Circulating supply - 124,766,922.87 kick
• Total supply - 123,766,923

Banana bucks

Banana buck is a binance smart chain-based decentralized cryptocurrency lunched on november 2020.

Source

Below are some information about banana buck

• Market cap - nil
• Volume - $4

Question 5

Here, I will be talking about two shitcoin that have been successful.

Samoyed coin

Source

Samoyed coin is a meme token built under solana blockchain by Sam Bankman-Fried (CEO of Alameda Research and FTX) and Anatoly Yakovenko (co-founder of Solana).
Samoyed cretion was inspired by dogecoin which is considered as the father of meme coins.
Samoyed coin was lunched in april 2021 with 14.4% airdropped to the community.

About burn

64% of Samoyed coin supply have been burn over three occasions. The first being during the launching where 2.1% was burned and the last burn was around 2nd of november 2021 where 500 million samoyed coin was burn.
And i will say that samoyed coin experienced a pump around the Q4 of 2021 due to the burns and also effects of influencer.

Information

On coinmarketcap, samoyed coin is ranked #416
With a trading volume of $3,424,116
A fully diluted market capitalization of $289,118,662
And a total supply of 8,248,697,429

Samoyed is trading with the current price of $0.0313 having an all time high of 0.03213 And an all time low of $0.03049

Safemoon

Source

Safemoon is a shitcoin created on the binance smart-chain network on march 2021. Safemoon charges 10% fee on transaction with 5% distributed among token holder and 5% sent to liquidity pool.
Safemoon was created by John Karony, (a former analyst for the United States Department of Defense).

About burn

About 223 trillion tokens were burned before the lunch and for every transaction 5% is been burned. 416 trillion SafeMoon have been burned from launching till the time of making this post.

Information

Source

From the screenshot above below are some of the information I was able to derive.

Ranking - #208
Trading volume - $1,917,975
Fully diluted market capitalization - $2,164,150,357
All time high - $0.000002167 dated april 2021
All time low - $0 dated march 2021
Current price - $0.000002164

Question 6

In this part of this task, I will be performing a hystoric analysis of one of the above listed shitcoins and I'll be analysing safemoon using coingeko website

Hystoric analysis of safemoon

The official website of coingeko is https://www.coingecko.com/en
Clicking on the above link will take you directly to coingeko official website. And in this case I'll be searching for safemoon
Below is a screenshot showing the price history of safemoon.

Source

Safemoon started trading at a very low price of $0.000000001 around march 2021 as betokened by the number 1. Safemoin experienced the first bull around april 2021 reaching an all time high of $0.00000708 on wednesday, 21 april 2021 as shown by the number 2.
From april 2021 there was a bearish retracement pulling safemoon price down to $0.00000328 on sunday, 2 may 2021 as signified by the number 3.
After the bearish correction, the bulls returned into the market and drove it to the current all time high of $0.00000882 on the 13 of may 2021 as denoted by the number 4.
From may 13 2021 price began to fall till around august it had a little bullish call and continued with the fall as indicated by the number 5 in the screenshot above.
On the 30 of october 2021 safemoon experienced a spike in price upto $0.00000635 as marked by the number 6 in the above screenshot, after which it went down again to $0.00000141 on the 6 of december 2021 and since then it have been trying to get back up.

Question 7

This is a critical question i must say, but from my own point of view, safemoon will do well this year reasons being;

• Firstly: introduction of the safemoon version 2 - with the level of work and the community is putting in to this version 2 I'm rest assured that safemoon will do well this year.

• Secondly : lets take a look at the price action from listing till date.

Source

Looking at the above screenshot, you'll notice that safemoon have made a series of impulses and corrections, and i strongly believe that its next impulse will be massive.

• Lastly : safemoon is still cheap and i believe, in reference to the law of demand and supply that people will be willing to invest in safemoon.

Conclusion

It was an amazing moment of learning, on the topic "shitcoin and how to profit from investing in shitcoin.
Thank you professor @nane15 for making out time to put down this teaching, I must say it was a nice time learning from you.

CC
@nane15
@sachin08
@reminiscence01