If Benjamin Graham were alive today, the flood of “investment” in bitcoin-knockoffs affectionately known as “sh*tcoins” probably would have killed him.
By this point in the cycle, everybody in America seems to have a friend or a cousin who has made tens of thousands investing in Dogecoin or some other altcoin like CumRocket or Poocoin or the Dave Portnoy-approved SafeMoon. Like Portnoy said in his now-infamous comment made in a video announcing his endorsement of SafeMoon: “If it is a Ponzi, get in on the ground floor.”
Portnoy said he likes the name because the moon is “where he wants to go.” Can’t argue with that logic.
In an attempt to bring some transparency to the opaque cottage industry that is churning out sh*tcoins, a team of Bloomberg reporters interviewed investors, coin creators, promoters and others who have become integral pieces of the crypto universe. By one firm’s count, some 10K new coins have been minted this year alone. Nic Carter, a prominent voice on crypto twitter, said “it’s the most aggressive capitalism we’ve ever seen…it’s global. It’s 24/7. And it’s completely unregulated,” Carter said.
Launching a coin doesn’t cost very much. What costs money is the marketing. Fab, the creator of the “SuperDoge” token, told Bloomberg that he spent $150K over 20 days on influencers. He also spent another $25K to get it listed on an exchange. At one point, Facebook said it would ban advertising of alt-coins. But for SuperDoge, Facebook ads, and ads on 4chan were crucial – along with efforts to reach “investor groups” on Telegram.