Why do shit coins, meme tokens, whatever you want to call them; why do they suck?

Well from outside the obvious reason like supply, the smart contract its based off are all garbage there’s a slew of other reasons.

  • High Burn Tokens: Now we have seen a lot of these pop up over the last few months and frankly its getting out of hand. Tokens life Safemoon is just the tip of the iceberg of a slew of these shit tokens. I mean common, on top of gas fees you burn 15% in some instances… These coins are get rich schemes for whales. They release the coin, buy a shit load of it and spam it as a gem.
  • Stupid volume: Bitcoin has 22mil in supply, doge prints 12 million a day. No doge has gotten some traction thanks to Elon but there’s still nothing niche about it. We are starting to see more and more shit tokens with billions (not like 5 billion) like 500 billion in total volume. A lot of these high value coins have no use case what so ever.
  • Market Dilution: Now some people will say I’m wrong here, and well cool. At some point we need to acknowledge that the crypto space has become absolutely flooded with crappy coins, fake projects, and overall just a heap of shit in some instances.. I mean have you seen crypto reddit. Now some will argue that I may be correct but I’m missing the mark by not seeing this as a good thing due to the ever increasing interest in crypto. The mass amounts of money in shit tokens would do wonders for actual projects.
  • Legislative backlash: The SEC and FTC could be having a real hay day if they had the capacity. As mentioned multiple times a lot of these coins have no use case outside of the prospect of financial gain. This makes the coins a security and thus regulated. If the SEC and FTC had the manpower and computing power to track down the origins of a lot of these shit tokens ALOT of people will be hit with some hefty fines. The increasing amount of scammy tokens out there has caused governments around the world to take notice.
  • Hurting the Community: Shit tokens are like the MacAfee anti virus of the crypto world. Its everywhere and you cant get away from it. These tokens hurt the community by hindering the development of other projects that actually do something. When the community is flooded with useless shit it really makes it harder to find projects worth looking at.

If you think i missed anything let me know in the comments below.
*also I have started my own project GDT (Golden Dog Token) on Uniswap. Here’s a brief overview of the project Doggy Donators

Originally published at https://www.publish0x.com.

An Entrepreneur trying to make a difference and save animals that have been neglected and abused as pets or are endangered.