What Is Shilling in Cryptocurrency?
Cryptocurrency is a different world. Here, like any other industry, you will discover something new as you dig down deeper. For me, it was shilling.
Back in 2014, I was new to cryptocurrency and did not know anything about shilling. Was it a coin? A term? And does it mean anything negative? Positive?
Fortunately, all it took was a quick search to discover the real meaning of shilling.
Here’s What Shilling A Coin Means
I define shilling as creating hype around a particular coin to increase its value. If you see anyone “shilling a coin” then you know it’s a hype manufactured for one simple reason:
- So you invest in that particular coin.
This is powerful because if the coin is shilled successfully? If it is hyped up? Then are going to invest your money in that coin. You are going to be an investor. And perhaps you are going to even promote this coin online or offline.
But here’s something else I discovered:
People create multiple accounts to shill a coin. For example, on Reddit and 4Chan, you will discover a coin is shilled by the same person by creating accounts under a different username. Then they keep reposting and creating new threads.
You may also discover many shillers come up with fake claims to promote a coin.
Question Is: Why Do They Shill?
It’s not just a new coin that is shilled. Even old coins like Ripple, Verge, Tron (and hundreds of other currencies) are shilled regularly. Here’s why:
- Perhaps the shiller bought the coin at a high price.
Say, for example, if you are buying Ripple for $3 dollars, and now it is $1 – rather than selling a coin for a loss, you will shill it by calling Ripple the next bitcoin. You do this hoping for the price to go up, so you can unload your bags.
- Perhaps the shiller is an early investory.
Say, for example, if you invest in a coin and you have a few thousands of them with you, what are you going to do? You simply shill this coin to crypto enthusiasts.
- Perhaps it is a marketing strategy.
It is not uncommon to witness marketing managers of a crypto project pay several teenagers 0.1 bitcoin to promote their cryptocurrency. Task is to shill that particular currency across different forums and Telegram groups.
That Is Why DYOR Works
DYOR – Do Your Own Research – is important a coin is shilled to you.
Anyone can claim xxx coin is the next bitcoin. But if you do your research? If you check the facts? The team? The whitepaper? And see a potential in it? Then you will be safe.