The term ‘Shitcoin,’ which has become something of a catchphrase in the cryptocurrency community, refers to cryptoassets that have been deemed a failure. Anyone may now build their own digital currencies and tokens using blockchain technology. As a consequence, shitcoins—currencies that have no actual value or purpose are regularly created in their place.
To put it another way, at its most optimistic, the cryptocurrency market was worth more than $3 trillion. Small utility tokens, called as “shitcoins,” are also part of this business. There is a lot of use for this particular subset of the blockchain.
The term “shitcoins” also refers to digital assets that are undervalued. A look at the poorest performing cryptocurrencies over the last month is presented in this article.
What is a Shitcoin?
The phrase “shitcoin” refers to a kind of cryptocurrency that has no utility or value. Cryptocurrencies like these are nothing more than clones that have added no new value to the blockchain world.
To name just a few, there is Dogecoin (DOGE), BitTorrent (BTT), Dent (DENT), TRON (TRX), and Shiba Inu (SHIBA) (SHIB). Shitcoins, unlike Bitcoin or Ethereum, were not created for a particular reason and lack features. Because of this, they don’t last as long as other coins.
How Can Crypto Investors Recognize Shitcoin?
By looking at unfulfilled promises, lack of utility, and the coin’s purpose, one may learn more about a coin’s genuine character even if the market tends to be volatile. Blockchains like Bitcoin and Ethereum were supposed to promote decentralized finance (DeFi) by eliminating a central authority and boosting transaction security.
This is why BTC and ETH are repositories of value owing to the usefulness they bring. Shitcoins have no such fundamental function and merely exist because they can.
There are many shitcoins out there where the project promises a lot but doesn’t really deliver. Free domains, errors, and sloppiness are all too common on these kinds of project websites. The general consensus is that a cryptocurrency must have between 200 and 300 registered users to be considered credible. The lower the number, the more nefarious the action. In order to be considered a viable investment, a currency must be able to process 5-10 transactions per minute.
Some of the Worst Performing Shitcoins: 2022
1. Dogecoin:
Dogecoin is the worst-performing cryptocurrency of the year, according to our calculations. Following the success of Bitcoin, which was the first digital asset, this crypto is a satirical take on the profusion of crypto ventures.
Since it serves no practical purpose, the parody currency has evolved into the official symbol of the shitcoin industry. Every day, millions of additional Dogecoins are added to the supply, and thousands of computers across the globe race to mine them in order to get a piece of the action and process network transactions.
In the early days of Dogecoin mining, any machine could be used. Small-scale miners using standard gear are finding it more difficult to compete with the growing number of large-scale miners. Although mining Doge may be possible with a strong graphics processing unit, a more powerful ASIC computer is almost certainly required in order to mine successfully.
A 2.32 percent drop in DOGE pricing has occurred in the last week. In the previous twenty-four hours, the cost has risen by 5.45%. The price has fallen by 0.18 percent in the last hour. There is now a DOGE price of $0.08155 per unit. However, DOGE is still one of the most famous shitcoins online, despite what many people consider a poor investment option.
Tesla CEO Elon Musk, one of the most well-known proponents of the project’s ongoing relevance, has drawn considerable celebrity attention thanks to the project’s laid-back style.
Your capital is at risk.
2. Terra (Luna)
This month, Terra’s LUNA was regarded as one of the worst-performing cryptos on the market because of its poor performance. Terraform Labs, an Asian blockchain startup, launched Terra in 2018 with the goal of creating algorithmic fiat-backed stablecoins for the decentralized finance (DeFi) ecosystem.
An attempt to reclaim its $1 peg on the UST stablecoin was thwarted as the digital currency fell to a record low of $0.005. As a result of the ripple effect, the utility token LUNA’s price peg dropped from its then-high of $100 by more than 99 percent. LUNA is now trading at $0.000093, with a year-to-date slump of 100%.
A total of $2 billion worth of UST was unveiled on May 7, 2022, and tens of millions of them were quickly sold. As a result, the cryptocurrency’s values may have been affected by this volatility and market sentiment. People hurried to take advantage of the arbitrage, trading UST for LUNA worth $1 worth of 90 cents each, as projected.
Speed breakers, on the other hand, limited the amount of UST that could be burnt in a day at $100 million. If this was a calculated maneuver or merely a spontaneous reaction, the discussion might go on for days. Theorists say the attacker may have been banking on the price of bitcoin falling and wanted to take advantage of the vulnerability in UST.
Your capital is at risk.
3. Dogelon Mars (ELON)
Elon Musk’s intentions to colonize Mars have inspired the development of Dogelon Mars, a dogecoin-themed token project. Dogelon Mars’ founders entrusted Uniswap with the custody of half of the ELON liquidity.
Dogecoin offshoot Dogelon Mars aims to recreate the success of DOGE and realize Elon Musk’s idea of populating Mars. Doge and SHIB, two of the most popular canine meme coins, had a record-breaking year in 2018, smashing all previous records in the cryptocurrency market.
It has dropped 7.09 percent in the last week for Dogelon Mars. In the previous 24 hours, the price has risen by 7.75%. The price has dropped by 0.28 percent in the last hour alone. The current price per ELON is $0.00000045. In comparison, Dogelon Mars is 63.68 percent lower than its all-time high.
Buy Dogelon Mars on Crypto.com
Your capital is at risk.
4. Shiba Inu (SHIB):
Known as the ‘Dogecoin killer,’ Ryoshi, a pseudonymous developer behind Shiba Inu, released the cryptocurrency in August of that year. One of Vitalik Buterin’s anonymous friends constructed the Shiba token Ethereum smart contract, and he also supplied up to 10 ETH of liquidity for the ETH-SHIB Uniswap trading pair.
A decentralised exchange (DEX) called ShibaSwap, which enables users to trade and stake SHIB tokens directly, is possible because SHIB, unlike DOGE, is Ethereum-compatible. An NFT platform and DAO-based governance system will be released in the future by the Shiba community.
A 7.50 percent drop in SHIBA INU’s price has occurred during the last seven days. Prices have risen by 3.64 percent during the previous day. The price has risen by 0.42 percent in the last hour alone. It now costs $0.000011 per SHIB.
Your capital is at risk.
Concluding Words:
Before purchasing cryptocurrencies that are unknown or disliked by the community, perform a thorough study to better grasp their immediate and long-term prospects. Once you’re convinced that a coin will rise in value, begin by investing a little quantity of money.
To see whether your original prediction was true, keep an eye on the market. When that happens, you’ll be forced to choose between selling your coins for a tiny loss or holding onto them in the hopes that their value would rise.
You should take gains or at least your starting amount out if the price begins to rise and continue to ride the upswing. It is possible to invest more money when a clear indication signals a purchasing opportunity, provided that you are completely aware of the hazards.
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