Shit Coins: Red Flags!!!

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It's no news that cryptocurrency is the in thing and everyone is jumping on its train. It's sad that while some are jumping on the right train some are being thrown into carals because they joined the wrong ones. Shit coins according to Investopedia are cryptocurrencies with little of no value or a digital currency that has no immediate discernible purpose. Many naive investors find themselves in such loss because they invested largely in shit coins without understanding how the world of Cryptocurrency work.

A great example is FEG, Feed Every Gorilla which seemed like a great project to many. With anonymous investors, fake social media accounts and carefully created social media content they were able to pull a large crowd of investors while posing as an opportunity of a life time. Over three days the value of FEG rose exponentially then suddenly fell enriching these anonymous investors with at least $120 million in profit. One of the biggest orchestrated pump and dump and one of numerous shit coins that are now in circulation. Cryptocurrency which is supposed to be the ticket to financial freedom soon become a plague to many.

Many of these shit coins have one major thing in common which is the sudden pump and dump. They pump exponentially and suddenly within hours and fall like a mudslide in another hour or two. These coins usually have little or no value at the beginning and all of a sudden when they have pulled a large crowd the value peaks and very fast. Usually no legit coin no matter how awesome peaks that fast because of the time it takes to get it certified, on its feet and gain popularity in the cryptocurrency world.

Another factor many shit coins have in common is their lack of application or use in the crypto world. This is expected because scammers won't waste time creating am elaborate usecase because they are trying to make their money and get the hell out. No matter how much you research you wouldn't find a meaningful application. Real coins on the other hand are created to assist the crypto world like validate transactions, secure the network and many others. So befoe you think of accumulating a million shit coins you should make sure it has applications in the crypto world.

Low market cap is another red flag you should note. Most of these shit coins have very low market cap because it's easier to manipulate to their benefit. The most important thing to do before you invest is to do your own research on these projects. Carefully examine their whitepaper and even how it is written. From the whitepaper you can deduce alot about the project because the style and way it is written will tell how serious or unserious it really is. Shit coins usually have badly written whitepapers which beat around the bush without properly explaining what the project is and how it would benefit the crypto world. They include overstretched promises, unnecessary discounts or other factors that just seem too good to be true. Infact the exchanges they are listed on is a good hint on if it is a shit coin or not. Binance won't list a project until they have met specific requirements, so it's better you stick to investing in projects that are on legit exchanges and not try to reap where you haven't sown.