Every season has its perks, and 2023 has been full of that. Many activities seem to be increasing on the blockchain, exponentially resulting in the influx of new projects scattered across the Blockchain ecosystem. BTC just recently eclipsed the 30k mark for the first time in months, and many events in the news lately seem to favour the cryptocurrency's adoption.
The bull seems to be over now as the cryptocurrency market cap regresses. However, some coin seems to be enjoying a great trajectory. These coins are popularly called meme coins, and most, if not all, are always useless with no use case. Most are created just for fun and always have an unending market supply, i.e., the coin creator could issue more if he or she feels like it.
Because most of these coins are useless, they are always referred to as shitcoins. Are they unending numbers of shitcoins in the market since it is very easy to create a token now. So this has given lots of people the to create tokens with no use case or vision. Most of these meme coins or shitcoins have no whitepaper or road map, and the one with a whitepaper copied theirs from another project.
Investing in a shitcoin is profitable when you are among the earliest investor, but as the hype continues to wear off, people still invest lose their funds as they have a coin with no one demanding to buy. This event painted here is for the best-case scenario, which happens but not frequently. These coins have made the earliest investors rich, and you do not have to be a professional trader to make this huge money from bitcoins.
In the worst-case scenario, most of these shitcoins and meme coins rugs after making numerous promises and also showcasing a road map they copied from a serious project. This rug pool happens after the devs of this shitcoin project see how much people have invested in the project. The devs pull the plug by removing liquidity from the project rendering the coins in people's wallets useless. The dev becomes rich from the back of people's investment funds which the investor could rekt.
So yeah, it's shitcoins season, but I won't be part of it this season as I have not gotten over the losses I made 2 years ago investing in coins that are worth nothing now and they are just dust.