Are shitcoins’ fundamentally stronger than Layer 2s?
“We’ve had a lot of discussions about Layer 2 solutions and why they didn’t turn out to be the investment play that everyone initially hyped them up to be!”
Personally, I lost money on @Starknet, but the idea of ‘cutting m fingers instead of my arm’ helped save me from even bigger losses. As soon as I realized that this one was different, accepting my mistake rather than letting my ego get in the way made all the difference.
Today, the big question we’ll dive into is:
- What is this cycle about? Shitcoins?
2. Why are some of these so-called ‘shitcoins’ fundamentally stronger than Layer 2s?
I’ll walk you through a few quality shitcoins that I’m very bullish on and explain why I believe in them. We’ll also shed some light on how my successful trades weren’t always about just buying, but about conviction — knowing when to hold, when to sell, and having the humility to admit when you’re wrong. This mindset isn’t just about making the right moves but learning from the wrong ones too.”
Click the link below to view the entire Discord discussion @Quantico_xyz It’s possible that I overlooked certain Alpha or lessons that are hidden throughout the whole talk we had the previous evening.
- What is this cycle about? Shitcoins?
“Is this cycle different? Definitely. The current cycle is being driven by the approval of Bitcoin’s ETF, a key event that shows the crypto market is maturing. With major institutional players like @BlackRock and other big funds entering the space and controlling large amounts of capital, the ‘smart money’ has officially arrived.
In addition, early 2023 introduced Taproot, an upgrade that allows data to be stored on individual sats — a feature that wasn’t possible with SegWit. This opened the door for Bitcoin NFTs, which took away a lot of the utility from other Layer 1 blockchains. So why talk about shitcoins when they seem less valuable than tokens with strong fundamentals? The truth is, many retail investors enter crypto to make money, not to follow narratives.
In the last few cycles, a lot of projects came with big stories but failed to deliver. This led the market to adopt a mindset where, if you’re going to take a risk, you might as well gamble on something that could actually generate profits. As a result, shitcoins have gained popularity, shifting attention away from traditional projects and towards meme-based tokens. We’ll now explore the fundamentals of shitcoins and why, from a financial standpoint, they could be better plays than Layer 2s in this cycle.”
2. Why are some of these so-called ‘shitcoins’ fundamentally stronger than Layer 2s?
We all know that a “shitcoin” is just that — a coin with little to no inherent value or utility. It’s straightforward. However, there’s a key to trading shitcoins: timing. The typical cycle is that the developer of the shitcoin sells off a significant portion, and then a meme or social momentum pulls the coin up in value.
That’s when the entry point becomes critical. Yes, you’ll miss out on the early gains, but even at that stage, it’s possible to make 100X returns on your investment. The fun (and the challenge) is that these opportunities are rare and unpredictable, highlighting that successful trading is more about patience and avoiding overtrading.
But how does this make shitcoins fundamentally strong?
The truth is, it doesn’t in the traditional sense. What makes them attractive right now is the fact that the Layer 2 narrative is so weak that even the right shitcoin can seem like a stronger bet by comparison.
Why is the Layer 2 narrative weak?
If you understand this core idea, it all makes sense. Layer 2 solutions, like rollups or sidechains, were created to solve scalability issues and lower fees, but they don’t address all the pain points of blockchain. As projects like @monad_xyz emerge, they could make the entire Layer 2 narrative obsolete because they aim to solve these issues directly on Layer 1. In essence, the weakening Layer 2 narrative leaves space for speculation on meme-based or narrative-driven assets, like shitcoins, to capture attention. And as @monad_xyz continues to develop, it may further erode the need for Layer 2s, making shitcoins an even more interesting play in the short term, despite their inherent lack of fundamentals.
“Personally, I’m very bullish on high market cap tokens like @POPCATSOLANA and WIF. They have all the right ingredients to reach a potential 15–25x return, even with their already high market caps. Now, let me share my story of what’s happened so far.
I haven’t personally invested in the above shitcoins, as I don’t find them as lucrative for my strategy, but they could be appealing for people aiming for steady, fixed-range returns. My focus has been on the airdrop I received on @Aptos with @AptosMonkeys for @guiinuonaptos $GUI. I received an airdrop worth around $5.5k at a $10 million market cap in December, which grew to $30k at a $60 million market cap. While it’s currently worth around $3.4k, I’m still holding with conviction because the story and data are aligned, and I believe in the project’s long-term potential.
I have strong confidence in the team behind it and the key ingredients I mentioned earlier, so I believe there’s potential to make $300–400k in this last peak, likely around Jan-Feb. I’m humble enough to know I won’t be exiting at the absolute peak, but I’ll likely cash out around 20–30% below it. The point I want to make is that I’ve had several shitcoin trades that performed well and made money, while some didn’t go as planned. These experiences have been crucial learning opportunities and can help the community grow by understanding both the wins and the losses.”
If you find this useful, please follow @cryptodurgesh and Medium Page. This journey is here to stay forever.
