Memcoins\shitcoins and how to make money on them

2009: Cryptocurrency – a new breath for the global economy, decentralization, smart money.

2023: Cryptocurrency – tokens named after dogs and other animals, among other things, with billion-dollar market capitalizations.

In short, cryptocurrency technology is used not only for innovation but also literally just for fun. Tokens are created in honor of anything and everything, with ABSOLUTELY no real use case. Why? Well, because it’s fun))))

So, Shitcoin literally translates into Russian as "crap coin," and it's pretty clear what it means.

Shitcoin (or Memecoin) – coins created for fun, with no prospects beyond inflated hype.

Why do shitcoins exist?

• For entertainment.
• For exit liquidity. Usually, beginners are the ones who buy at the highest price and sell at the lowest. This is called "exiting on the hamsters." Beginners serve as exit liquidity here.
• Shitcoins are highly volatile due to their low market cap, and some can yield 10x, 100x, or even 1000x returns. That’s why shitcoins have become a way to make money. It’s essentially a new type of casino (though success here depends not only on luck but also on many other skills). In reality, they can also be compared to NFTs, as neither has much intrinsic value.

Shitcoins usually have a very short lifespan. Below is a typical shitcoin chart.

What kind of shitcoins are there?

Shitcoins need to have at least some minimal idea behind them. Based on this, there are different types of shitcoins.

1. Info Shitcoins (GTA6, TRUMP2024, etc.)

These depend heavily on news and can skyrocket with any media sneeze in either direction. You can jump in before a major news event (presidential elections, a game trailer reveal, etc.). These shitcoins are no better than betting in a bookmaker's office.

2. Memecoins (Pepe, Dogs, Skibidi Toilets, etc.)

Such tokens often pump after tweets from Elon Musk. If Elon mentions Dogecoin or another dog, the coin with that dog sees a wild pump (rapid price surge). If he mentions something with a similar name to a shitcoin, that shitcoin takes off. A good example is the $GROK token, which was created after Elon Musk posted about working on an AI called GROK. The token later shot to the moon.

3. No-name Shitcoins

These are made by influencers to dump on their followers or are just random coins with no backing. I call them "chair shitcoins." Remember the game where music plays, and when it stops, everyone scrambles to sit, but someone always gets left standing? Same thing here. Everyone sees massive potential gains because the market cap is tiny, and pumping the token is super easy. Once it's 3x, then 5x, but a second later, it’s almost a complete wipeout. But no one ever talks about that—it's always "MY CALL HIT 5X, WHO'S YOUR DADDY?!"

Which networks have shitcoins?

Currently, there are two main networks for shitcoins:

• Ethereum – An expensive network, with transaction fees ranging from $3 to $100 (or even more).
• Solana – A cheap network, where transactions cost mere pennies (less than a cent). This makes it more beginner-friendly. The biggest hype around shitcoins is in this network (as of April 2024).

However, shitcoins can be created on almost any network. For example, the Base network is currently gaining hype, while a year ago, shitcoins on Arbitrum were popular (right after the airdrop).

Types of earnings on shitcoins

In reality, it’s all very simple. The entire profit comes from buying low and selling high. That’s it :)

Our goal is to find a token and buy it before it gets hyped. Basically, we need to exit on others. That’s life :)

Flip

Flip is a quick trade (from a few seconds to several days). I won’t even mention long-term investments in shitcoins. That’s just stupid.

So, once again, our goal is to buy cheaper and sell higher.

Why do shitcoins grow? It’s very simple. Since shitcoins are highly volatile (strongly subject to price fluctuations), they are very easy to pump (increase in price). This is done in the following ways:

• It gets posted in some channel. Your task is to buy earlier than everyone else and make a few Xs. The slowest ones become exit liquidity (the ones we cash out on).
• It gets posted in some private group. For example, it might first be posted in a private group of 50–100 people. At this point, you can already exit. But usually, such shitcoins are later made public (Telegram channels, Twitter, etc.).

In short, I hope you get it. Our task is to buy a shitcoin as early as possible and exit on others. And the growth is purely due to social effects.

Another example. If Elon Musk posts a tweet with the text “CRYPPI,” then 100% someone will pick it up and immediately create a shitcoin in some network, and it will get pumped hard. Just like the $GROK token, which was created after Elon Musk posted about working on an AI called GROK. That token later skyrocketed.

Sometimes flips happen through bots. For example, a parser is set up on some channel. A buy signal for the “CRYPPI” token comes in. The bot instantly buys. Then, within a couple of minutes, you can easily exit on those buying manually. Profit!

Participating in Presales

Remember NFTs and whitelists? But I’ll remind you anyway. A whitelist allows you to mint an NFT among the first, and it’s almost always guaranteed. The same applies to shitcoins.

If you have a whitelist, you may be allowed to buy the token before the official launch at a calm pace (meaning no need to rush) and likely at a slightly lower price. This process is called a presale (literally “pre-sale”).

A listing occurs, and you exit on the crowd.

Buying at Listing

What if you don’t have a whitelist and don’t want to flip? You can buy the token right at the moment of listing.

How does listing work?

1. A smart contract for the token is created.
2. This smart contract is posted on the shitcoin’s social media.
3. At the moment of listing, bots buy the shitcoin at the lowest price. The purchase happens in the first trading block. You probably remember what a block is. So, listing can’t start exactly at 12:00 (it’s not always technically possible); it starts in the BLOCK that occurs around 12:00.
4. Those who managed to buy with bots exit on those buying manually.
5. Profit.

How to Find Shitcoins?

There are some peculiarities with shitcoins. You can find opportunities in three main places:

• Influencers. Some coin might buy an ad from a blogger, or the blogger might create their own token. Your task is to buy it faster than anyone at the announcement and exit on the crowd.
• Callers and private groups. A private group is a closed community that supposedly has private information. Callers are essentially private group workers. They may share interesting shitcoins they believe could take off. Sometimes they give the tip to the private group first, then post it in a public channel. In the end, the callers and private group members profit, while regular folks from public channels get exited on.
• New pairs. Some bots track all newly created tokens. Suppose someone Peter creates his John token; it will show up in all new coin trackers. These trackers also check the token for various factors—whether it’s a scam, whether it has liquidity, etc.

Of course, there are many more ways to find shitcoin opportunities, but we definitely won’t go deep into that.

Scam

It’s worth mentioning that the world of shitcoins is full of scams. For example, some shitcoins can be bought but not sold. The smart contract simply prevents selling the purchased tokens. And there are many such tricks. That’s why shitcoins are literally a minefield.

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