A few days ago we published the news of a youtuber who, taking advantage of his enormous fame on the Google platform, decided to create a cryptocurrency with the aim of scamming people. It was another influencer who discovered the scam and remembered videos from the past where Ice Poseidon had already joked on his channel about scamming people with their own shitcoin, before actually launching CXcoin on the market.
Since scams (or bad investments) with shitcoins are not isolated cases, we are going to know how to identify them. First of all, you have to know that, as their name indicates in English, they are mier__ coins (you can continue the word). It usually refers to cryptocurrencies with little or no value, which have no immediate purpose. The problem with shitcoins is that they are often considered bad investments, because their prices are often based on speculation. They are not as solidly based as other coins created by finance experts.
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It should be noted that not all new coins or with few users fall into the category of shitcoin. Some may be new coins and with little investment because their creator does not have money to promote it, but that does not necessarily make that coin a shitcoin.
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How to identify if a coin is shitcoin or not
There are thousands of cryptocurrencies on the market (a year ago it was estimated that there were more than 4,000). Just because a coin is small doesn’t make it a shitcoin. There are other criteria. Therefore, we are going to share expert tips to identify these currencies without a fixed objective that can lead you to lose your investments. These tips come from Enterpreneur and Hazelvelvet on Reddit.
- Who is the developer. If its developer is a mystery or it is not clear that he is an expert in economics, avoid that coin. The people behind a project must be trusted. Just like you wouldn’t invest in shares of an anonymous company, it’s the same here. If the developers have been identified through a video on Instagram or Youtube, you should look for in-depth information about them. In the case of youtube Ice Poseidon, in the past he had talked about creating a shitcoin to scam people. This can make you suspicious.
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- Clear information and defined objectives. Anyone can come up with impressive goals and promises, but you shouldn’t beat yourself up about it. If not, that the cryptocurrency in which you are going to invest has a clear roadmap on how those objectives will be met. If a project avoids defining features, it is not trustworthy.
- Research currency information. On the above points, experts urge you to investigate information thoroughly. Just like when you buy a product or a service on the Internet, you will surely look at the evaluations of others. Access your search engine and see opinions and experiences of third parties with those coins. Look for it to have an official website and a Twitter, at least. Also note what photo he uses to identify himself. Be suspicious if it’s a stock photo.
- Finally, look for coins with a team of people who don’t hide. According to the Reddit user, when cryptocurrency team members publicly identify themselves via Instagram Live or YouTube videos, this greatly decreases investment risk, because their faces are publicly known. We have already seen that this is not always the case, such as the aforementioned example of the youtuber, but at least having the more knowledge the better.
- There has to be some control. When there is a cryptocurrency it is not possible to mine just like that. It wouldn’t make sense for an investment business. There has to be an order for the investment to have a logic. Cryptocurrency developers often define its value based on supply. This means that there will only be a specific number of coins in circulation, after which no more will be generated or mined. Look for information about it.
- Share your doubts on Reddit or on social networks. The Internet community is immense and if you have doubts you can always consult other Internet users. The way to find shitcoins is to join subreddits like “r/AllCryptoBets” and Facebook groups dedicated to promoting new shitcoins. Here you can search for information on recently released shitcoins.