The crypto market is awash with a flurry of digital assets that traders can choose from. To this effect, traders are always on high alert over the performance of coins. This is because the market is unpredictable, and tokens could rise or fall anytime. Although there are tokens adjudged to be already at their peak, others are still coming up gradually in terms of value. But despite that, they do not have the backing that most top coins, which is why they lose a massive amount of their value. In this article, we will be looking at the top 5 dying crypto projects in the crypto market.
What Are Shitcoins?
Shitcoins are digital assets with little or no value or purpose but just existing in the crypto market. Most of the digital assets in this bracket were created without a thought-out motive or as copycats. For example, the creation of tokens like Bitcoin and Ethereum came with some set-out goals and objectives. This is what makes these top digital assets amass enough values and why shitcoins lose their values over time. Some of these shitcoins are also used to carry out scams activities which are described as pump and dump schemes. Shitcoins are risky in terms of investments as traders stand to lose almost all their investments in these tokens. As of January, about 22,000 digital assets were classed as shitcoins in the market.
How Do Shitcoins Work?
Ever since the creation and subsequent breakout of Bitcoin in the financial market, traders have focused their interest on the sector. As a result, many developers have been trying their hands to become the next creator of the biggest thing. The majority of these new tokens either copy the creation of Bitcoin or copy another token. Before the tokens are created, developers usually announce the total amount of tokens that will ever be created. In Bitcoin’s case, its total supply was pegged at 21 million tokens, while Ethereum has a supply of 18 million tokens every year. This limited supply leads to scarcity, which leads to the value of tokens pushing high. In the case of shitcoins, they have no supply cap, no exciting features, which means that they do not attract so many traders in the market asides from newbie traders.
How To Identify Shitcoins
Identifying a shitcoin is easy, but it will take only seasoned traders and a genius set of eyes to pinpoint a project as being such. This is because most of these tokens have the same pattern that they follow. As such, traders can pick them out immediately when floated in the market. Below are the few ways to identify shitcoins in the crypto market;
- Mysterious Developers: The development team behind a new project in the crypto market should exhibit some level of responsibility. For the project to work, they need to be trustworthy and not claim to be something they are not. Traders who intend to know more about the project should be able to access them on platforms like GitHub. Projects with known entities are ten times more likely to succeed than anonymous developers. A project with anonymous developers has a higher chance of becoming a scam at the end of the day.
- Zero Functionality: As long as it concerns the crypto market, any developer can come up with any project and sell it to traders to invest in. Some of these projects even go as far as a promising milestone that they cannot achieve in the nearest future. Most of these projects copy the roadmap of other pre-existing projects across the crypto market. If a developer releases a roadmap without determining functionalities, the project is as good as dead.
- Token Holders: According to experts, a good crypto project must have at least 300 investors when it enters the crypto market. If a coin doesn’t hit this required mark, then such a project is as good as gone. In the same vein, a good project must be able to complete around five to ten transactions every minute.
- Liquidity Pools: Projects in the crypto market should have a liquidity pool of around $30,000. The pool is seen as the vital force behind a crypto project. Should a project have a number lesser than those mentioned above, then traders need to be wary of the possibilities of such tokens being a shitcoin.
Are Shitcoins A Good Investment?
In plain terms, shitcoins are terrible investments in the crypto market. Traders undertake huge risks in investing in the tokens with a promise of little or no rewards in sight. Most of these shitcoins undergo pump and dump schemes where only the developers take the biggest rewards during the pump. After the dump, the token is left to fend for itself, leaving traders with a massive loss in their portfolio. However, other smaller tokens tend to bring in massive profits, but the cases are rare across the market. An investor can only get lucky when he sells his assets before a potential massive drop in price.
What Are Pump And Dump Schemes?
Pump and Dump Scheme is a false narrative about a token with the sim of boosting sales over a short time. These informations are misleading, with its narrative controlled by the developers or influencers of the project to drive traders. The modus operandi of most pump and dump schemes is that developers have a massive stake and would sell as soon as they gain enough. After this happens, the token price goes back to the ground and causes other innocent investors to lose a massive part of their investments. The developers or influencers use terms like ‘ready to take off’ to sell the false narrative to traders.
Top 5 Dying crypto projects in the market
While most of the altcoins in the market cannot be classed as shitcoins, some fall in that category. This is because they have lost a considerable amount of value since they first made their debut in the market. To this effect, we will be looking at the top 5 dying projects, focusing our attention on those that have lost more than 80% of their value in the last 30 days. Below are the top 5 shitcoins in the crypto market;
#1 The Luxury Coin (TLB) -99.79%
The developers of The Luxury Coin built the digital asset as a utility tool to enhance spending. The Luxury Network created TLB. According to the creators, holders of the token can use it to participate in private events across the network. In terms of performance, The Luxury Coin has fallen short of expectations with a massive 99.79% drop in the market in the last 30 days. Presently, the token trades at $0.103, registering a decline of 0.53% in the last 24 hours. The token boasts of a trading volume of $135,049 in the same duration. However, the exact figures of the current token in supply and market cap were not available during writing.
#2 Panda Inu (PANDA) -99.66%
The Panda Inu token is a new token that made its debut on the famous Binance Smart Chain. Like Shiba Inu, it is a meme-based digital asset. The project plans to allow traders to hold, trade, and manage decentralized assets with its wallet that is currently in the works. Panda Inu hopes to create an interesting DAO community that will rival centralized communities across the crypto sector. PANDA has registered a massive price drop of 99.66% in the last 30 days. Presently, the token is trying to make a comeback as it trades at $0.00000013, seeing a small surge of 0.63% in the last 24 hours. During writing, other on-chain metrics such as market cap, trading volume, and circulating supply were unavailable.
#3 DPK (DPK TOKEN) -99.60%
DPK is a platform that allows players in decentralized finance to play games and earn rewards. Players can play the games and earn tokens and can trade them on another platform by DPK. Players intending to participate in gaming activities on the platform can do so with NFTs. Although the platform has a multi token (KIT and DPK), DPK is the main token of the platform. This is because the KIT token has a supply limit. DPK’s performance across the last 30 days has been disastrous posting a decline of 99.60%. Presently, the token is trading at $0.000731, with a rise of 4.59% in the last 24 hours. It has a trading volume of $2,169,956 in the same time frame.
#4 Metakings (MTK) -99.52%
Metakings provides gamers with a unique fighting experience that is powered by AI. Players are open to earning rewards in tokens and NFTs. Also, players who intend to contribute to the ecosystem will earn rewards for their contribution. The token picks up the fourth position in this list with a decline performance of 99.52% over the last 30 days. Presently, the token is trading at $0.00377, posting a decline of 25.22% in the last 24 hours. MTK boasts a trading volume of $678,209 in the last 24 hours. Other on-chain details of the token are not available at press time.
#5 Web 3 Development (3WEB) -99.17%
Web 3 development prides itself as the first network to build a private and fair internet with maximum security. The developers created the network to empower users of the everyday internet via blockchain. The network sustains itself while enabling communication on a peer-to-peer basis without the need for a third party. 3Web has not been convincing over the last 30 days, posting a decline of -99.17%. Presently, the token is trying to make a comeback and is doing a good job with a price of $0.000203, seeing a rise of 111.48% in the last 24 hours. The token boasts of a trading volume of $383,247 in the last 24 hours. However, other details were not available in writing.
Trading in the crypto market is quite tedious due to certain market factors. However, you should do a great deal of research into any project you intend to invest in. These shitcoins also have some potential in the market but would fail in the long run. This means that only seasoned traders who know how to trade them will earn massive rewards. You should also diversify your portfolio if you’re getting into these tokens.
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