- These cryptos to sell offer minimal real world use-cases and are the riskiest investments in the crypto space.
- Floki Inu (FLOKI-USD): Meme token with minimal utility
- BitTorrent (BTT-USD): Namesake crypto of one of the most notorious platforms in the Internet world, which limits adoption
- Ripple (XRP-USD): Sluggish mover with a relatively unattractive growth runway
The crypto market came of age during the pandemic, making millionaires from mere chump change. However, market returns have taken bludgeoning of late, which has investors concerned over the future. One thing for certain, though, not every digital investment is cut from the same cloth. There are plenty of cryptos to sell that may previously have been investable.
Crypto went mainstream during the pandemic years, with heaps of smart money coming in to push the needle for the sector. Amid greater adoption, though, the correlation of cryptos in traditional investment markets such as stocks has increased significantly. Many believe the risk diversification benefits from cryptos are fading away fast.
Nevertheless, the cryptos offering long-term utility should always be on your investment radar. At the same time, it’s important to avoid the moonshot investing strategy with cryptos and have a more diversified portfolio.
Having said that, here are three cryptos that you should avoid placing your bets on.
Cryptos to Sell: Floki Inu (FLOKI-USD)
Floki Inu (FLOKI-USD), named after Tesla CEO Elon Musk’s dog, was one of the most popular meme cryptos last year. Since then, it jumped over 8,000% in value from its launch but has shed over 90% of its price just this year. Floki Inu’s website shows that its development team is proud of its meme-token status. They believe that mainstream adoption is linked to “leveraging the power of memes.”
It offers hardly any use-cases for its investors. It supports a “play-to-earn” metaverse game named Valhalla. Moreover, there are also plans to build a non-fungible token (NFT) marketplace. Moreover, it also has a few decentralized finance agreements which could be used for collateral purposes.
These use-cases aren’t nearly enough to survive in the quickly evolving crypto world. Its rivals are ahead in the game, and it’s unlikely for investors to consider FLOKI-USD as a long-term investment.
You probably know BitTorrent (BTT-USD) as one of the top peer-to-peer (P2P) file-sharing platforms. It made Torrents famous, a notorious online sharing method linked to the dissemination of pirated content. These days, the platform’s famous for offering BTT-USD, a cryptocurrency to share files at quicker speeds.
Tron, one of the more popular blockchain-based operating systems, is behind the development of BitTorrent. It’s been looking to build a utility for the niche-based crypto to gain traction with big-money investors. A few months ago, its development team announced it was working on a cross-chain protocol called the BitTorrent Chain (BTTC). BTTC is likely to facilitate transactions on multiple top crypto networks.
Despite the efforts, it’s unlikely that BTT will get far in the altcoin race. For starters, it has a shady reputation that won’t attract any institutional investment anytime soon. Moreover, it offers hardly any use-cases for investors to feel confident about it being a long-term investment. It’s down more than 90% from its highs last year. I expect it to continue to struggle for the foreseeable future.
Cryptos to Sell: Ripple (XRP-USD)
Ripple (XRP-USD) is one of the few top cryptos that couldn’t perform in line with its peers during the pandemic years. It was mainly due to its legal tussle with the U.S. Securities and Exchange Commission (SEC) which has had a crippling effect on XRP-USD’s price. Though the developments have mostly favored Ripple, there’s plenty of uncertainty surrounding it as a long-term bet.
RippleNet, a leading global payments platform, is often confused with XRP. RippleNet has gained incredible traction in the past few years and used XRP in bridging currencies for its On-Demand-Liquidity offering. It isn’t compelled in using the crypto but hopes to increase adoption.
Mainstream adoption of Ripple seems unlikely, considering the controversy surrounding it. Moreover, it’s also a public blockchain, so that financial institutions might be sensitive to transactional information.
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