Crypto is divisive, we can all agree on that I think. There are those who believe in crypto and those who don’t. There seems to be a steady stream of new cryptos being hyped as well.
That hype tends to follow a very polarized path as well. Early believers stay on board, while those early to dismiss rarely change their minds. That’s one aspect of crypto hype.
But I’d also like to add that crypto remains in a funk overall. Bitcoin (CCC:BTC-USD) continues its downward march that began back in early November. The gravity it exerts across the crypto universe continues to act in predictable ways.
As crypto wavers, hype naturally should too. That’s what we’re witnessing right now according to the Crypto Fear & Greed Index. That index sits at 11, on a 0-100 scale.
Even the most legitimate crypto projects will have a tough time in this environment. The weaker, more overhyped projects will look especially weak now. That’s where we’ll focus. They are the cryptos to avoid that aren’t worth the hype.
- Dogecoin (CCC:DOGE-USD)
- Shiba Inu (CCC:SHIB-USD)
- Ryoshi Token (CCC:RYOSHI-USD)
- SIMP Token (CCC:SIMP-USD)
- ShibaDoge (CCC:SHIBDOGE-USD)
- Crazy Rich Coin (CCC:CRC-USD)
- Bitgert (CCC:BRISE-USD)
Cryptos to Avoid: Dogecoin (DOGE)
The crypto ecosystem has a long way to go before people begin to take it seriously on a wide scale. Here’s why: Dogecoin presently carries the 8th largest market capitalization of all crypto projects.
If you’re like me and believe it’s overhyped, that’s really saying something. Most everyone knows by now that Dogecoin was started as a joke. It was created as a means of poking fun at the entire crypto movement.
That joke now commands the 8th largest market capitalization within crypto. That doesn’t bode well for crypto overall, now does it?
There’s really no way to justify that being the case. Well, there are explanations, but they seem flimsy at best.
That article that I linked to is from May, but the explanation it gave then remains true. There is a community of supporters collectively willing this thing to succeed despite a near-total lack of utility.
Shiba Inu (SHIB)
Shiba Inu is another very popular and overhyped dog-inspired crypto.
Despite the fact that I am not big on Shiba Inu at all, I’ll start by giving it kudos for one thing I particularly like about it. It was leveraged for a social good in these strange pandemic times.
The creator of Shiba Inu, Ryoshi, gave 50% of the initial supply of SHIB to Ethereum (CCC:ETH-USD) founder Vitalik Buterin. Buterin donated more than 50 trillion SHIB to the India COVD-Crypto Relief Fund.
So, despite the fact that you can’t use Shiba Inu many places, it does have value in that its monetary exchangeability helped pandemic efforts in India.
Buterin’s decision actually prompted a sharp drop in SHIB prices of 35%. It’s hard to know what to make of that, honestly.
Anyway, Shiba Inu was created as a joke on Dogecoin, which was itself created as a joke. Like so many other cryptocurrencies it is essentially a trading tool.
You can buy and sell Shiba Inu and make a tidy profit from its rapid fluctuations. Fans of SHIB are eager to repeat those tales, but it is what it is. There are many losers and given that SHIB is continuing to slide, consider yourself warned.
Cryptos to Avoid: Ryoshi Token (RYOSHI)
Where to start with Ryoshi Token? Honestly, there’s so much that’s so ridiculous about it.
Meme coins are underpinned by absurd, half-baked stories which are devoid of any logic. Here’s the one behind Ryoshi Token:
“See, Ryoshi is Shiba’s older, wiser father. He’s proud of everything his son has accomplished but is pretty bummed about the fact that so many people missed their chance to get on the moon rocket.”
Remember, Ryoshi is the creator of Shiba Inu. Somehow by naming this project after him and stating that this is more experienced (it isn’t, but that jocular tone is common among some people boosting cryptos) people should buy-in.
But here’s the kicker: Didn’t make a bunch of money on Shiba Inu’s wild, illogical fluctuations? Well, you can make up for it by purchasing Ryoshi Token because RYOSHI implicitly offers you a ticket on its “moon rocket.”
That’s hype, nothing more, nothing less.
Ryoshi Token differentiates itself from Dogecoin in terms of its tokenomics. RYOSHI is deflationary, meaning that as more transactions occur on its network, an increasing proportion of its supply is burned.
That’s something, but not much because the entire project is simply too silly.
SIMP Token (SIMP)
Buy SIMP in order to be a Simp. That’s a niche term to be sure, so it warrants explanation.
Most often it relates to males being overly submissive to females in an effort to curry favor but gaining nothing.
SIMP was created for adult content creators by adult content creators. The problem it seeks to solve is that the company claims banks and traditional finance channels have outsized power over the adult content industry.
SIMP supposedly solves that. How? No one knows. It’s basically an assertion that SIMP has your back if you work in that industry.
SIMP Token looks like more of the same vague promises we’ve come to expect from these kinds of projects.
The company is attempting to market the idea that a rug pull-type situation won’t happen. It states on the website that liquidity is locked in for two years for the presale and launch.
The company wants to become the primary current on two adult sites, pocketstars.com and rocketstars.io. But it’s far too early and vague to take anything from the project.
Cryptos to Avoid: ShibaDoge (SHIBDOGE)
If you follow the narrative undergirding ShibaDoge you will realize that we have a serious problem.
Central banks are government-controlled monopolies with outsized influence over money supplies.
Fortunately, there is a way to give the power back to the people. It’s all contingent upon the community banding together in a concerted manner.
However, there’s a problem with that as well. According to ShibaDoge, the diametric opposition between the Shiba Inu community and the Dogecoin community is the only thing preventing that goal from being achieved.
Per ShibaDoge’s website, “The only way that can happen is if the community comes together for the greater good of all mankind.”
Merge those two communities and suddenly the grand promise of defi will materialize.
So, go buy some of the 10,000 hand-drawn NFTs that cost 0.15 ETH each. Those hand-drawn NFTs feature uniquely dressed dog generals representing inspirational nations including “bullish tokenomics” and “generational wealth.”
Sounds a bit too crazy to me but perhaps I’m just not in the know.
Cryptos to Avoid: Crazy Rich Coin (CRC)
Normally, I’d dismiss a project like Crazy Rich Coin based on its market cap of $2.8 million.
A market cap like that isn’t usually going to drive my hype, but given that CRC jumped by 200% recently it merits discussion. Remember, I think it’s overhyped and dangerous.
The token is aspirational and purports to empower millennials and Gen Z to own real estate and control their own assets. Crazy Rich Coin draws its naming conventions from the movie “Crazy Rich Asians.”
The details are vague on the website, but what I can gather is that real estate NFTs are important to the project.
The project features fractionalized ownership of real estate NFTs targeted at younger buyers who can’t keep up with rising real estate prices. So, rather than buying physical real estate, they can purchase fractions of digital real estate.
I could be missing something here, but I don’t see how this solves anything. Otherwise, the whitepaper is jargon-rich with vague ideas prominent in the crypto space these days.
Token burning and things of that nature crop up, but there’s very little substance here. Buy real estate NFTs in essence. How that results in real returns remains totally unclear.
Cryptos to Avoid: Bitgert (BRISE)
Bitgert is a crypto project that attempts to leverage tokenomics and stock market signals to entice buyers to purchase BRISE.
Let’s look at the tokenomics first. BRISE depends on a 12% transaction fee which includes 5% buyback tax, 3% marketing tax and a 4% distribution tax.
Actually, they spelled it distribiution. Call me a stickler for details but grammar and spelling errors are hallmarks of previous rug pulls including Squid Coin.
I don’t know what’s going on behind Bitgert and I’m not calling it a rug pull, but I always become suspicious when funds are directed into a centralized repository in these projects. In any case, that’s one important aspect of it.
The other is buybacks. The details are confusing here. The whitepaper is simply attempting to equate stock market buybacks to its policies.
It seems like hype to me and given that BRISE trades at minuscule fractions of a penny it’s more a trader’s tool than anything else.
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Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.