It's easy. Lack of real-world utility or adoption. Up until this point in crypto there's a new set of "can't miss, gonna revolutionize the world" altcoins that pop up. Fast forward 2 or 3 years later, the project is dead and gone, creators wasted all the money, or rebranded to try to take advantage of the latest trends (now DeFi) for another cash grab.
Then add in the hacks, the rugpulls, the false hyped up partnerships, constantly delayed roadmaps or missed deadlines, the few who might own over 50% of the supply dumping on the regular investor. It's same story over and over
This continuous cycle ends up with people thinking they're getting in early on a promising project when in the end they're just losing 99% of their money and end up with a token worth shyt.
That's why crypto is still labeled as a highly speculative market. Until these coins start becoming more than just pdf white papers or hyped up partnerships and having real world utility and real adoption, they'll keep getting labeled as bitcoins.
It's not easy to assign a label on companies not even remotely! So asking this question to establish a different perspective have you run a company or ever launched a product. Ask this to show the other side, as you get everything right expect for timing!
Sit down with any successful firm and their team and go through their backgrounds and you find a commonality "failed projects". In the valley in Cali or the square in China, failure is appreciated as it means your one step closer to a better product. Not sure why people think that a room full people with MBA and CFA have a clue what to do or what people want. Exactly what your seeing in this small marketplace of crpyto, is exactly what goes on in the upper echelon of companies. Spectacular failures! The only thing is nobody is paying attention and, to be honest, it just is not that transparent!
Some people and teams have done what we would define as illegal things and they deserve the appropriate title of shyt coin. Won't even start on all the crimes going on in companies' boardrooms and on exchanges, that I have witnessed in person.
But there well-intentioned people and teams that got the timing wrong that get that label as well and it's not simply right! I saw a Microsoft prototype tablet in 2002 at a dinner party they got the timing all wrong and the product failed! Anyone in here going to call that and their team a shyt product. Microsoft relaunched their tablet and is killing it now!
The term shyt coin is thrown around with ease and it's annoying to people and teams that are trying to bring some amazing products to enrich people's lives and wealth accumulation.