By CNBCTV18.com Dec 25, 2021 5:34:54 PM IST (Published)
Shitcoins, the umbrella term used to describe failed cryptos, derive value solely from existence. The most famous example is Dogecoin. For instance, Dogecoin draws its value from the tweets of the wealthiest person on the planet, Elon Musk.
The term ‘shitcoin’ is an umbrella covering all the spin-offs of failing or already failed cryptocurrencies. Usually devoid of any identifiable purpose, these currencies have no basis for existence and lack fundamentals to back them. Since their purpose is undefined, unlike Ether and Bitcoin, these coins have no longevity associated with them.
The most famous example is Dogecoin. Dogecoin was ‘forked’ from Litecoin in 2013, or conceptualised as a fun currency. It was created as a meme coin and had its appeal restricted to the Shiba Inu dog breed featured on its logo.