Investors looking for cryptos to sell may not have been rewarded too well this year, which may not change soon. However, the crypto market is saturated with projects that have no utility and can only be used for transfers with high fees. Even then, people only hold or transfer them because of speculation about their future price instead of their uses.
With a recession on the horizon later this year, I strongly believe that crypto investors should start dumping such projects and move into the big-cap names unless they are investing in very promising projects. If the banking crisis does continue, we may see Bitcoin (BTC-USD) rallying and outperforming others, while meme coins and impractical projects sit on the sidelines.
Furthermore, the vast majority of these projects will not perform well in the next cycle. As investors move on to the next trend, their tokenomics start weighing in on the price through high inflation.
With that in mind, here are three such cryptos to sell:
| TRX-USD | Tron | $0.070275 |
| ELON-USD | Dogelon Mars | $0.00000021 |
| PEPE-USD | Pepecoin | $0.00000165 |
Tron (TRX)
Tron (TRX-USD) may seem like a solid project with a scalable blockchain and a utility token that supports projects such as Tether (USDT-USD). However, it has a risky stablecoin project of its own, called USDD (USDD-USD), that could bring down the whole Tron ecosystem.
USDD is an algorithmic stablecoin that uses TRX as collateral and promises to maintain a 1:1 peg with the dollar. It also offers high staking rewards. However, this is very similar to the Luna (LUNC-USD) project, which collapsed and lost almost all of its value. Luna also used its native token as collateral and had a large reserve of Bitcoin, but that was not enough to save it.
Tron’s USDD project is even more dubious, as it has a low and declining collateral ratio of 170%, which is mostly composed of TRX-related assets. It also has only $384.7 million of Bitcoin as reliable collateral. Moreover, Tron had previously been dishonest about its USDC reserves, which turned out to be a worthless token called JUSDC.
Therefore, investors should steer clear of Tron and its USDD project, as they have too many red flags and could end up like Luna.
Tron’s token economics are also flawed, as it has an inflationary supply of 90 billion TRX, with no hard cap or burning mechanism. This means that the value of TRX will continue to dilute over time as more tokens are minted and distributed. Moreover, Tron’s governance model is centralized and oligarchic, as only 27 super representatives control the network and vote on its policies.
Dogelon Mars (ELON)
Dogelon Mars (ELON-USD) is an ERC-20 token. It’s another crypto project that exploits the craze around Dogecoin (DOGE-USD) and Elon Musk. But it has a big red flag: the Methuselah Foundation controls over 40% of the tokens.
I had previously warned that the foundation could start selling, and indeed they have started to move the tokens from the main wallet into multiple other ones, with the aim to sell 3.14% of ELON tokens annually.
That may not seem much, but as the meme coin hype slowly but surely dries up, this selling pressure is going to drive down the price of this crypto in the long run. Plus, there are far better meme coins in the market if you are into these sorts of cryptos.
Pepecoin (PEPE)
Pepecoin (PEPE-USD) is the latest meme coin to hit the market, riding on the popularity of the Pepe the Frog internet character. However, investors should steer clear of this coin, as it has no fundamental value and is doomed to decline.
Meme coins are based on temporary hype and social media buzz rather than real-world use cases or innovation. They are highly speculative and volatile, making them risky bets for any investor. Pepecoin is no exception, as it has already lost over 80% of its value since its all-time high in April.
I’ve seen this story before with other meme coins. Dogecoin, the original dog-themed meme coin, has crashed over 88% since its peak. Apecoin (APE-USD), another meme coin that I warned about a few months after its launch, has virtually stopped being relevant after dropping 91.5%-plus from its all-time high.
Therefore, Pepecoin is a sell, as it offers no long-term potential and is likely to keep sliding downwards. In my opinion, chasing meme coins when the hype is at its peak is not worth it when more reliable and sustainable cryptos exist.
On the date of publication, Omor Ibne Ehsan had a small amount of TRX for USDT fees. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
