If you are referring to diversification for the mere sake of it (because you think that there is a benefit to that), then you are wrong.  Things can go wrong.. because you dilute your investment and you lack focus.

Alternatively, if you are believe that diversification into shitcoins constitutes any kind of meaningful diversification, then you are wrong.  Things can go wrong.. because again you are diluting your investment into nonsense.. including into a field that is already correlated to bitcoin.. so shitcoins move along with bitcoin, so if you diversify into them, you are merely adding more risk to an already risky investment area (namely bitcoin).. and the general idea of getting benefits from diversification comes from investing in differing categories of asset classes (hopefully not correlated), and traditionally those differing categories of asset classes would be equities (stocks), bonds (various kinds of debt instruments), properties, commodities and various kinds of cash exposure.  Surely some of the recent problems with the various lack of non-correlation, even with the traditionally different categories, is that so many of them are corrupted by the various ways that the categories are tending to be overly leveraged by various ways that the dollar (and other fiat currencies) are propped up in ways that natural market dynamics are not allowed to take place.. and even shitcoins actually incorporate some of the various fiat corruptions in varying ways that are not necessarily consistent between them, but does not seem to be a justification to "diversify" into those varying kinds of smoke and mirror products for the mere sake of "being diversified".