What Are Shitcoins and How They Were Traditionally Created

What are Shitcoins? 

A shitcoin refers to a cryptocurrency with little to no value, authenticity, or utility. These tokens are created with minimal innovation or purpose but often as a joke or for a quick-profit scheme. Many of these tokens (popularly known as meme coins) are inspired by current world happenings, internet jokes or memes. Because most shitcoins are memecoins, the term shitcoin and memecoin are often used interchangeably.

Shitcoins are usually propped by inflated promotional claims, ambiguous use cases, and teams made up of anonymous or nameless developers.  As these tokens have no intrinsic value, their prices tend to crash as soon as market interest fades.

That said, the term "shitcoin" is sometimes used disparagingly to describe altcoins because of their tendency for the price of altcoins to crash similar to that of shitcoins. However, altcoins are cryptocurrencies that project themselves to be better alternatives to Bitcoin.  What separates altcoins from shitcoins is that altcoins endeavor to create a project with utility and value while shitcoins often do not.

How Are Shitcoins Made?

The introduction of shitcoins basically utilizes the token generation process and some marketing practices that developers typically employ to attract investors. Below is a detailed insight into the launch of shitcoins into the crypto market.

1. Choosing A Blockchain Network

Most shitcoins are created on an existing blockchain platform, notably Ethereum, Solana, and Binance Smart Chain (BSC). These networks allow users to design and create tokens using existing standards (such as ERC-20 for Ethereum, SPL for Solana, and BEP-20 for BSC) without needing a separate blockchain infrastructure.

2. Utilizing Token Creation Tools

Most shitcoin developers simply use token creation tools, which make it convenient to launch a new cryptocurrency in a matter of minutes. These platforms offer templates and frameworks that facilitate the token creation process without in-depth programming knowledge. Popular examples of token creation tools include Pump.fun, Bitbond, Orion, MoonDeploy, and so on.

3. Setting Token Parameters

Using the token creation tools, developers can quickly set basic token properties, such as name, symbol,  initial supply, decimals, etc. While many projects may introduce little tweaks in the token attributes for uniqueness, the changes are mostly superficial and insignificant.

4. Minting The Tokens

After customizing the token attributes, the developer deploys the token contract to the blockchain platform. This is often the final step in the actual design and creation of tokens before distribution and sale.

5. Token Marketing

Project teams try to create buzz around their tokens using various social media platforms, online communities, and digital publications. The shitcoin creators also pay social media influencers to make exaggerated claims about and garner community support for their tokens.

7. DEX Listing

Finally, developers usually aim to list their tokens on decentralized exchanges (DEXs), like Uniswap and PancakeSwap, where anyone can access them. Moreover, DEX listing doesn't often involve a rigorous vetting process, allowing tokens to reach the market more quickly.

The Great Era of Shitcoins

Recognizing the growing popularity of memecoins, many crypto projects have streamlined the process of creating "shitcoins" by abstracting away the above complexities for users. Platforms such as Pump.fun pioneered this to great success in 2024, simplifying the token creation process for users on Solana. This ease of creation created a flood of new shitcoins, with hundreds if not thousands of shitcoins emerging and trending on the market daily.

Shitcoins That Became Popular Coins

Below are some memecoins that have gained significant popularity and mainstream acceptance.

Dogecoin (DOGE)

Dogecoin was launched as a lighthearted joke based on the "Doge" meme featuring a Shiba Inu dog. The meme coin gained prominence in 2021 through social media and community initiatives, including endorsements from celebrities like Elon Musk. 

Unlike Bitcoin, Dogecoin has an inflationary model with no maximum supply, making it accessible to new investors. Nevertheless, the DOGE token ranks amongst the top 10 largest cryptocurrencies, with a market cap of over $25.1 billion.

Shiba Inu (SHIB)

Created in August 2020 by a pseudonymous developer known as “Ryoshi," Shiba Inu was designed as an experiment in decentralized community building. The meme coin witnessed explosive growth in 2021, fueled by speculative trading and its low price point, attracting several retail investors. 

According to data from CoinGecko, Shiba Inu boasts a market capitalization of nearly $11 billion. As of this writing, it ranks as the 14th-largest cryptocurrency in the digital asset sector.

Pepe (PEPE)

Pepe is an Ethereum-based meme token that launched in 2023, leveraging the Pepe the Frog internet meme. It quickly caught the attention of meme enthusiasts and market speculators, with its value largely driven by community activity and social media buzz. 

While its lack of inherent utility and high volatility make it a risky investment, Pepe has grown into one of the most valuable coins in the crypto market. As of this writing, the meme coin has a market cap of more than $3.9 billion.