At CryptoCheck, we don't pretend to know the future, and we don't pretend that we are absolutely right. We make our assessments based on the information available, weigh the evidence as fairly as possible, discuss the evidence (when available), and make a decision. These decisions are not always unanimous. One editor may wish to rule something Extremely Likely to be a Shitcoin, while another may wish to rule it Extremely Unlikely. It's our Editor-in-Chief's job to make a decision when this happens.
Neither are we omniscient or capable of predicting the future. We don't know what's going to happen. Based on experience, economic knowledge, psychological understanding, sociological influences, and other factors, we make judgements that can best be described as "intuition" in labeling something a shitcoin or not a shitcoin. The good news is that s shitcoin is much easier to identify than a scamcoin, because there are a few general rules that a cryptocurrency shouldn't break in order to avoid being a shitcoin. So let's get to hose.
What is a Shitcoin?
A shitcoin is a cryptocurrency or Ethereum Token that meets some of the following criteria. It's possible that a shitcoin only meets one of these criteria, but that example is so egregious that it outweighs all the others. Bitcoin Silver is a good example of this, as they have a website, a whitepaper, a Twitter account, and a Facebook account, but their whitepaper is of such inferior quality and their website is engaged in so many outright lies that the existence of a website and whitepaper count for very little.
- Does not have a whitepaper. Alternatively, the whitepaper is of little-to-no technical quality and reads more like an advertising brochure.
- Does not have a domain. "bitcoinpurple.wordpress.com" does not count, and should be purchased with extreme caution.
- Does not explain what their cryptocurrency is supposed to do, or how it is supposed to do it.
- Does not have developers or managerial staff who can be reached.
- Does not have an active and robust community.
- Does not have Open Source software, which functions as Peer Review in coding.
- Does not have any ideas behind it.
- Using the words "revolution," "evolution," "world-changing," "paradigm-shifting," et al. in their whitepaper.
Being a Shitcoin Means What?
Honestly, that it's probably not ever going to increase much in value, and certainly isn't going to be "the next Bitcoin" as so many claim to be. They may get up to 0.30 USD or somewhere around that, but they're unlikely to ever really take off. It sounds tempting to buy a shitcoin at 0.001 USD each, hoping they will climb up to the 0.30 USD each, which would be a massive return, but the far more likely outcome is that the shitcoin vanishes, and all that money is lost. A Shitcoin is the highest risk asset in all of cryptocurrency, excluding, of course, scamcoins. But some shitcoins do pull through, that's true. Belacoin has managed to make its way to 0.10 USD each, and Potcoin has reached more than 0.30 cents each. However, this is so unlikely an outcome that it's not worth taking the risk.
Examples of Shitcoins
So What Should I Do?
In general, one should stay away from shitcoins. Their total market value is unlikely to ever reach beyond 40 USD, and they're unlikely to have enough miner support or even staking support to verify transactions. This will lead to miners and stakers dropping out, causing transactions to become impossible to process, which kills the shitcoin. This has happened to an unbelievable amount of cryptocurrencies and Ethereum Tokens. Although we are not infallible, if we have ruled something to be Likely through Extremely Likely to be a Shitcoin, it is best to be avoided, unless one is okay with having that money disappear forever.