# The Obvious Series: Shitcoins

By [LGHT](https://paragraph.com/@lght) · 2023-07-24

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There are two parts to _The Obvious Series_:

1.  Simple explanations for newer entrants
    
2.  Abstract wtf are we doing here reflections
    

Shitcoins (aka Memecoins)
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A crypto currency open to market speculation.

### The Simple

Sometimes referred to as _memecoins_, shitcoins can be conceptualized as:

1.  _knockoff_ coins compared to _name brand_ coins like BTC and ETH
    
2.  market-cap-roulette tokens
    
3.  community/protocol stock
    

At the introductory level, shitcoins are high risk, high speculation ‘assets’. Anyone can create one and make it available on a [decentralized exchange](https://mirror.xyz/lght.eth/NU0WT5Q2kCVIk3kT2o_RIn1IFKxf6j2y9sU2PQpajrE). Because of this, many are scams, honeypots (buyable but not sellable), and wallet drainers. This is why we call them _shit_.

They exist because:

1.  the industry is built on no permission necessary
    
2.  sometimes people get insanely rich off of them
    

### The Abstract

At the more intermediate levels of crypto, you find the conversation on whether all coins are shitcoins. Even the ‘tried and true’ protocol-coins may be no different than $DOGE or $SHIB.

At first it may seem nonsensical, but upon further consideration, you start to see quite a bit of overlap. When comparing $UNI and $DOGE what is really all that differentiating **at the coin level**?

Clearly the Uniswap _project_ is quite different than the Doge project. There is a team working at Uniswap Labs, a founder on twitter you can talk to, etc. But when examining the _coins,_ what is there beyond speculation, market signaling, and potential profit shares?

Some will say votes in a DAO, which isn’t wrong. However, when you dive deeper into how Uniswap is set up, you see that many of the core infra decisions are made in-house. The DAO almost serves as a community conference center.

This is not a condemning observation either. It makes sense that a protocol, trying to survive numerous bear markets, not leave its future in the hands of degenerate gamblers. What we are uncovering, however, is that the $UNI coin provides much of the same mechanism as _shitcoins_.

I’m of the opinion that this is not a ‘bad’ thing. In fact, I feel it’s a necessary feature of what we are trying to build here onchain; something we will call **meme markets**.

![market caps](https://storage.googleapis.com/papyrus_images/5c81ef57e2816320d61709cf6310484e0f5d147db9a0503991604022e46c528c.png)

market caps

Remove your personal preference on where liquidity should flow and let’s examine the above image. What do these two coins _represent_?

Doge represents:

*   comedy
    
*   counter culture
    
*   memes
    
*   a fuck you to the system
    

Uniswap represents:

*   decentralized finance
    
*   free market economy
    
*   self custody
    
*   peer to peer economics
    

If you were to ballpark what share of people, out of 100, care more about Doge’s ideas or Uniswap’s ideas… it’s a no brainer why it has more than double the market cap. This is a crucial element of crypto; the Financialization

### Description

  
of meme markets.

Not much different than owing $TLSA stock as way to gain exposure to the companies ideas and potential profit, ‘shitcoins’ are the crypto equivalent. They run much faster, are inhibited to a way lesser degree, and anyone onchain can create one.

Shitcoins are a feature of crypto, not a bug.

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*Originally published on [LGHT](https://paragraph.com/@lght/the-obvious-series-shitcoins)*