Stop Shilling ShitCoins
An attempt at simplifying blockchain concepts, companies, and coins.
I am writing this note during a minor -- across the board -- correction (~10%) in the crypto markets. As usual, we're getting two mixed signals from the crypto Twitterati:
1) The sky is falling. Get out while you still can.
2) I can't believe the discount I'm getting on $XYZ coin.
While the volatility is fun to watch, and usually fun to participate in, I don't think we're seeing the major correction most seasoned (realistic) crypto veterans are expecting. But it's coming, and let me tell you why.
Our collective ShitCoin investments.
What is a ShitCoin? A ShitCoin can be many things:
1) A coin with a plagiarized whitepaper (Tron, DADA, etc)
2) A coin with no product (80% of them)
3) A coin with a shitty product (The remaining 18%)
4) A coin with a ridiculous valuation for its market opportunity (Dentacoin... yeesh)
5) A complete copycat (Or Dog...ecoin)
There's more, but since I've covered 98% of the available tokens, I think we're good here.
When the market is so speculative that ICOs with mediocre ideas and absolutely no product are getting oversubscribed to the tune of millions and millions of dollars, you have to ask yourself if you're backing something the world needs.
The world has not magically changed into a unicorn where everything will always go up in parabolic ways. When you invest into a ShitCoin, you are backing the marketing of these things with your hard-earned dollars. The money earned in an ICO like $TRX is then used to buy advertising, travel to conferences, pay advisors, coin shillers and promoters. You are feeding the beast. And I promise you, the beast will fuck you up.
The friend who saw 1000% return in one of these ICOs might get out at the right time. More likely, they're going to go down with the ship. As one of the more entertaining crypto financial advisors (Ronnie Moas) likes to parrot, "Pigs Get Fat. Hogs get Slaughtered". And right now, lots of people are acting like big, fat, hogs.
One of the beautiful things about the blockchain and about cryptocurrencies is that we all are given the transparency and ability to put our money where our mouths are. To back the projects, currencies, companies we believe will usher in a new era of opportunity. Some of us back the non-profit stuff. Some of us want to see change in financial markets. Some just want to stop the government, the banks, whom-ever from taking so much of our profits. These are noble causes and will actually change the world.
And they'll make you a lot of money.
So let's agree to stop shilling our ShitCoins, and let's do some more research before we tell our friends and followers to buy this or that crappy coin. Because the markets will eventually have to correct around this madness of overvalued assets.
Let's not throw the baby out with the bathwater when they do.