CoinMarketCap takes a deep dive into PooCoin, a charting service that has managed to attract a whopping 66.8 million visits in the last month. Read more!
Binance Smart Chain (BSC), a smart-contract-enabled blockchain developed by one of the world’s largest crypto exchanges Binance, and launched in August 2020, has helped to thoroughly revitalize the cryptocurrency industry in its mere fourteen months of operation.
It allows for the simple and straightforward creation of new digital assets at a fraction of the cost compared to Ethereum (ETH), currently the most popular smart contract platform: as of Nov. 23, Ethereum’s average gas price is about $9.6, whereas BSC’s average transaction fee is around $0.472.
The latter’s comparative advantages have ushered in a veritable stream of new cryptocurrencies: according to the live feed of new tokens on the DEXTools data analysis platform, there are already thousands of assets based on the BSC blockchain, with dozens of new ones going live every single hour.
With such a vast amount of new assets being created every day, it became hard for traders looking to profit off the BSC’s bustling ecosystem to keep track of all the new opportunities. This reality has inevitably resulted in the creation of dozens of services that offer their users the tools for monitoring the market, plotting charts, and trading the multitude of BSC-based digital assets all in one place.
Some of these are more popular than others such as, for example, PancakeSwap (24.6 million visits in October) or the already mentioned DEXTools (18.6 million visits in October). There is one platform, however, that has managed to outperform most of its competition despite — or, perhaps, in part — thanks to its rather daring branding.
PooCoin, a charting service that offers a selection of convenient tools to BSC token traders, has managed to attract a whopping 66.8 million visits in the last month. Let’s take a detailed look at where PooCoin excels and what are its disadvantages and try to see whether there’s some deep utility hidden behind the faecal facade or if its success is entirely meme-driven.
What Makes PooCoin Stand Out?
PooCoin is actually a name shared by two projects, the first of which is the BSC-based PooCoin (POOCOIN) token. Its defining characteristic is probably the absolutely ridiculous fee of 8% — incurred on every transaction — 4% of which is redistributed to all PooCoin holders, and the remaining 4% burned forever.
In a curious example of circular logic, this is supposedly implemented to incentivize investors to hold on to the token in expectance of long-term income from the redistributed fees; one is left to wonder, however, where these fees will come from when the actual use of the coin for everyday transacting is heavily disincentivized by those same exorbitant fees.
The low usability of the coin, coupled with a lack of other standout features finds its reflection in PooCoin’s lackluster performance as an asset. At a fully diluted market cap of $23.3 million and daily trading volume of about $153,201 as of Nov. 23, POOCOIN is ranked the 4,252nd out of all BSC-based tokens. Its namesake platform, on the other hand, can actually boast some impressive statistics.
Self-described as an “advanced charting and wallet management tool” on the Binance Smart Chain, PooCoin has managed to attract just shy of 70 million visits last month. While there is no reliable way to compare the userbase statistics between different BSC aggregators at the moment, that number very likely makes PooCoin one of, if not the most popular platform of its kind.
Besides what is arguably its main feature — a multi-charting service that allows users to simultaneously track several digital assets with the ability to customize the chart plotting tools — PooCoin offers a number of other useful tools.
Ever found yourself lacking a convenient tool to compare different poo-themed coins? Well no more!
The first of these is the trading page that allows users to swap between any two crypto tokens listed on the platform, albeit in this scenario PooCoin only serves as an intermediary and the actual swap is performed on the PancakeSwap (V2) exchange.
Then there is the Telegram Price Bot, which can be added to any group on the popular messaging service Telegram to provide accurate prices, charts, and other data on BSC-based tokens for free. The trending page lists the most visited token pages based on external traffic from other websites to PooCoin.
PooCoin offers several other features designed to make the BSC market data analysis more straightforward and efficient for its users, one of the most promoted of which is its own Ape scanner. It tracks new BSC token launches in real-time, providing market participants with fast access to new investment opportunities.
Are There Downsides?
Despite the wide range of features, PooCoin does not come without disadvantages. The platform’s subreddit /r/PooCoin/ is currently filled with numerous user complaints regarding disabled trades on user-created assets, not working swaps, the lack of measures against known scam coins, and more.
Some of PooCoin’s tools lack refinement: for example, there are complaints that the Ape scanner is almost completely full of rug pull scams, putting under question its usefulness as an instrument for investment vehicle discovery.
The platform itself is well aware of the fact, going as far as to explicitly discourage users from buying the listed tokens in most cases; however, from developers’ communication, it is unclear whether the tool will ever evolve to a state where it can provide actually useful information.
Ultimately, PooCoin is not to blame for the fact that the vast majority of newly launched BSC tokens can be classified as the so-called shitcoins or even outright scams. The ease with which new digital assets can be launched on Binance’s blockchain is one of its main advantages, but it does inevitably make life simpler for the less scrupulous market participants.
Perhaps accepting that reality, PooCoin chose to be forthright about what it is — a sort of one-stop tracker designed specifically for the shitcoin market. It is highly likely that that candid positioning is exactly what has attracted so many people to its platform in the past months: after all, while extremely risky, short-term trading of highly volatile assets can prove equally profitable with a bit of strategy and a lot of luck.
Retail investors, however, should always remember that success in the low-capitalization crypto market is indeed mostly based on luck and never invest or trade with more money than they are prepared to lose.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
