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Welcome to the era of pump and dump. In the word of cryptocurrencies, several coins experience their fame for a day, but not all of them are here to stay. Such coins rarely offer any value of use cases in the long run. Such coins are often referred to as shitcoins.
If all of this sounds like a joke or scam or something in between, that’s because shit coins are half legitimate and half not. No, it is not the joke-coins based of canine breeds. The discussion is now looking past that. Consider this token for instances – according to CoinMarketCap, this coin at press time hiked to MORE THAN 70,000,000% in price!!!
This happened to the EthereumX (ETX) token. EhereumX is a token that runs on the Stellar Network and seeks to give Ethereum a run for its money by promising to be more scalable and efficient than the former.
Here’s the main joke
At the time of writing, it was trading above the $50k mark, ranked #201 with a market cap of $4.4 trillion. Despite there being no verified volume (*shit coins look away*). However, consider this: just a few days ago, the same coin was trading at the $0.07 mark.
Source: CoinMarketCap
Mr. Whale, a prominent platform to track whales movements first highlighted the same on Twitter. He stated:
“This shitcoin is up 66.5 million percent within the last 24 hours. Retail noobs be like: ooooh wow! now looks like good time to buy”
Nonetheless, he believed it was a glitch. Needless to say, the community was quick to speculate on this absurd issue as well.
“This is no pump, it’s just a bug in CMC. There was no pump and it’s in general, not a pump coin. Sustainable growth,” a member said.
Another member opined:
Current market cap is $4.4 Trillion. It’s $4,400 Billions. It’s like 1/5 of IS GDP. Nice job! pic.twitter.com/jYiAnqXk1z
— Andy ℬebut ?⚛??? (@abebut) November 13, 2021
Zooming out a bit, this wasn’t the first time, that a lesser known coin made sudden and astronomical gains. Back in 2017, 3 cryptocurrencies rose by more than 100,000%. The peak gains were as follows: Verge (1,581,942%), Einsteinium (262,195%), and Reddcoin (132,712%). All three had certain catalysts to have worked in favor of these tokens. Although, mostly the fear of missing out on big gains played a big role in pushing the prices.
Well, not so surprisingly, all of the aforementioned tokens were trading in the red zone, under the $1 mark at press time. Verge (XVG), Einsteinium (EMC2), and Reddcoin (RDD) witnessed a 8%, 3%, and 1% corrections respectively in 24 hours.
Now, fast forward to a more recent shitcoin category, Squid Game token, or SQUID would fit perfectly. It rose by a whopping 2500%, with a 90% rise in trading volume. However, it took thousands of investors on a dizzying ride before vanishing and leaving the entire industry stunned.
Overall, the promise of these shit coins is there as an advertisement for a luxury lifestyle brand: If you get in at the right time, and buy a huge number of these coins, you could be a be rich beyond your imagination. But that is a promise that rarely, if ever comes true.
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