What is the Worst Scamcoin?

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Mark Mason

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Feb 24, 2017
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What is the Worst Scamcoin?


If you’re involved in the cryptocurrency world for even a few minutes you’ll quickly hear the word “scamcoin” (or its rougher cousin “shitcoin”). Anytime a new coin is launched, some Reddit warrior or forum crusader will declare the coin a scamcoin, then sit back, satisfied he’s enacted Internet justice. Even after a coin has been around for a long time and proven it has staying power (*cough* Dash *cough*) brigades may still command anyone who will listen—and even to mom upstairs—to avoid this “scamcoin.” It’s almost a rite of passage in the crypto world.

But what actually is a “scamcoin?” Essentially, a scamcoin is a currency that enriches those who create or maintain it, while impoverishing those who hold it. For example, say I were to create a new coin, creatively named “Scamcoin.” I set aside one million Scamcoins for myself, then I release it to the world. I pump its value via creative marketing and false claims, making each Scamcoin worth $1. I then dump it, cashing out a cool $1 million, and end all association with Scamcoin. I, as the creator, was enriched, but the suckers who wanted to use the coin are left with a worthless token.​
 
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