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Alex Cho

What's a Crap Coin?


Despite all the possibilities with Ethereum, I want to emphasize that there’s been a groundswell of poorly conceived projects, which has created what we now label crap coins or shit coins. So, what’s the common denominator for these projects?

They’re poorly branded coins, or coins that are way too dependent on the name of the coin rather than the functional utility of the coin. I.e. they’re banking on the speculative tendencies of get-rich quick types that care less for quality projects and are looking to turn a quick buck from a micro-cap coin.

The most well-known example of a spoof coin was Doge Coin, which was originally intended to be a brandy coin with very little real-world utility, which traded to a much higher valuation anyway. Of course, the few exceptional scenarios shouldn’t breed a speculative frenzy for more of these types of coins. Another way to identify crap coins, is a lack of telegram activity, paired with a non-existent social following on social media. The coins typically trade on Cryptopia, and have very little on-going developer and community support, because there’s not a business model that’s backing the coin, much less an active team behind the project.

Usually, these coins have catchy titles, and will proclaim that they’re solving certain problems with blockchain but have yet to establish key relationships with blockchain platforms, and have yet to deploy an app, or offer updates on the application itself. It’s usually run by a group of people who are smart enough to run the smart contract for running an actual crowd sale but have very little fluency with writing actual software code to develop an app that runs on the blockchain.

To find these coins, you could simply skip to the 300+ rankings of coinmarketcap.com and find a non-ending list of coins that failed to make it, because the teams behind the project weren’t fully committed to going the full-distance to run a business or a decentralized organization. It often confirms much of the media reporting of coins that were spun-up on the Ethereum network for the purposes of fundraising, so they can sell a token without the intended purpose of providing a service, which is why they later go onto become worthless.

Avoid crap coins! They’re not building anything of intrinsic value, and if you recognize some of these troubling signs, turn tail and run. There’s a sweet spot, among the top 100-300 coins, but from there it devolves into the territory of the rundown crypto slums, where you could do some digging, and find some value, but it’s better to avoid this form of gambling. If you really want to gamble, there are far better ways that might make you more money!

Daily volume on these crap coins tends to be less than $100K, which means that there’s hardly any active exchange activity, paired with zero developer/community activity, and no signs of future business partnerships or developments that may add value to the coin.

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