CryptoURANUS Economics: Shilling: Defined in CryptoCurrency


Thursday, May 6, 2021

Shilling: Defined in CryptoCurrency

Shilling: Defined in CryptoCurrency

Shilling is defined as insincere online talk about something for financial incentive. 

Shilling is a negative word often used when a person promotes something so they can earn money. But shilling can also be used when a person makes negative, sometimes false, accusations about something.

With cryptocurrencies, shillers tend to promote the crypto so that interest grows, people buy it, and the price increases.

Here are 3 potential reasons a person may shill a crypto:

  1. A shiller may be an influencer and was paid to promote the crypto.
  2. A shiller may be part of the team who helped to develop the crypto and wants to see it succeed.
  3. A shiller may have bought some crypto and hopes to sell it at a profit. He tells many people how great it is so they buy it, which increases the demand, and then the value goes up.
  4. A shiller may want a competing crypto to fail so his becomes more valuable. He tells many people how bad the competitor is which causes them to sell the competitor and buy his crypto.

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