Cryptocurrencies kicked off the year on an upbeat note, effectively navigating a tumultuous investment landscape. Consequently, many tokens are now meandering along the path to recovery, albeit sluggishly. Prices continue to hover significantly below their 2021 peaks. Therefore, identifying the cryptos to sell can be a prudent strategy.
Bitcoin’s rising tide is lifting all boats, including those of lesser merit. This dynamic poses a scenario where investors, lured by the allure of outsized gains, dive headfirst into the precarious waters of junk coins. These momentary windfalls can rapidly devolve into massive losses, underscoring the importance of avoiding crypto losses.
As we ponder the remainder of 2023, this burning question remains. Will the crypto market manage to soar to new heights and recoup the losses sustained last year? Either way, a wary eye on unstable cryptocurrencies might be the order of the day.
Cryptos To Sell: Pepe (PEPE)
The crypto realm is fraught with risks, and Pepe (PEPE-USD) serves as a potent example of these dangers. Its incredible volatility is attractive for those intrigued by the possibility of rapid appreciation. However, it’s imperative to understand that such instability swings both ways.
Pepe has emerged from the background of the meme coin scene, taking its identity from the famed amphibian protagonist of the Boy’s Club comic strip. The creators of the Pepe token capitalized on the popularity of this comic character, making it a popular choice for meme coin investors. Despite its popularity, Pepe offers little in terms of real-world utility, focusing instead on elements of meme culture.
It’s important to note that Pepe, like other meme coins, presents a stark contrast to cryptos aiming to provide fintech utility and integration into the broader economy.
Shiba Inu (SHIB)
Like a pack of dogs chasing their tails, meme coins like Shiba Inu (SHIB-USD) continue to disappoint. This offshoot of the Dogecoin (DOGE-USD) mania was once hailed as a potential ‘Doge-killer’. However, beneath the fluffy hype, it’s merely another vehicle for the speculative crypto realm.
Tailwinds that could’ve catapulted SHIB into a promising future remain absent, casting a shadow over the coin’s appeal. For instance, its much-touted Shibarium scaling solution had its launch stalled, with seeds of doubts over its eventual efficacy. Moreover, the highly-anticipated SHIB token-burning strategy seems to be fizzling out rather than sparking a price surge. These factors underscore that Shiba Inu, akin to its fellow meme coins, is more about dreams dashed than dreams realized.
Axie Infinity (AXS)
Axie Infinity (AXS-USD), once a shining star in the crypto sphere, now finds itself cloaked in uncertainty. It was a prime candidate for investors to light up your crypto portfolio effectively, but now might be the opportune moment to exit if you’re still holding AXS tokens. The heydays of play-to-earn (P2E) dapps seem to be fading, and after the ill-fated hack on its parent chain last year, a resurgence for Axie seems unlikely.
The March ’22 cyber theft, executed on Axie’s parent blockchain, resulted in a staggering $615 million loss, significantly weighing down the Axie ecosystem. This has led to a tangible erosion of active addresses on its platform. Adding fuel to the fire, the SEC’s potential classification of AXS as a security instigated a downward spiral in its value. With U.S. court decisions still in the balance and looming regulatory pressures, the future demand and liquidity for AXS appears increasingly precarious.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines