This saying is used to peer pressure others into doing bad activities, such as drugs, pooing in front of others, or drinking another dude's piss. However, it sounds so retarded that it can only be used ironically, and my friends and I often use it in a very joking and ironic context, encouraging each other to do absolutely retarded shit by chanting "do it and you're cool"
Dave: You should do drugs and eat poo on the balcony
Tomas: What the fuck? In Hungary, drugs are punished by horse archer firing squad, and I don't want that fate
Dave: Do it and you're cool
A phrase usually mentioned to get someone to do something that may not be cool but, sometimes is.
Bro 1: Dude, odds you do three pirate shots?
Me: Uh, Naw.
Bro 2: C'mon, Do it and you're cool!
Me: Well can't argue with that. *Chugs away*
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