As the cryptocurrency market experiences a surge of enthusiasm, savvy investors would want to identify cryptos to sell to limit the downside.
While well-founded projects continue to hold investment potential, some flooded the market with altcoins and meme coins that lack real-world utility. The long-term outlook for such cryptos to sell appears to be remarkably bleak.
However, occasional spikes during market rallies allow crypto traders to sell or short their tokens yielding hefty profits. Those with a long-term view of investing in cryptos will find that there is a greater risk of collapse when valuations srise.
It’s best to exercise caution with the industry plagued with so many “pump and dump” schemes and whatnot. Being circumspect will allow investors to navigate the unpredictable nature of the market effectively to find the cryptos to sell now.
With the irrational nature of the crypto market, unexpected catalysts can lead to liquidation. It’s crucial to avoid overvalued cryptos and steer clear of the worst cryptos with low volume and thin order books.
|OG-USD||OG Fan Token||$0.11|
Earlier this month, the Solar (SXP-USD) token made headlines and emerged as one of the most popular digital assets.
It experienced a staggering 260% price increase from March 28 to April 3 this year. The surge in value was mainly driven by Korean investors, which seems to be manipulated move.
In terms of real-world utility, Solar boasts very little. It draws parallels with Solana, with its layer-1 proof-of-stake network. However, the project has nothing on Solana, with the 10 top holders of SXP holding a massive 99.1% of the entire supply.
The lack of centralization speaks volumes over the recent movement in stock price. Though it offers some utility, it pales compared to Solana which has been one of the hottest cryptos over the past few years, with just 53 validators across the network.
Shiba Inu (SHIB)
Meme token Shiba Inu’s (SHIB-USD) prospects appear rather bleak, trading at a staggering 80% from its all-time high price, and with few catalysts on the horizon to invigorate the token.
Previously, SHIB enthusiasts thought they could ride the tailwinds from the Dogecoin frenzy, but their hopes were effectively dashed when Elon Musk announced the lack of SHIB holdings.
It keeps a sizeable amount across many exchanges, with over $6 billion in valuation. However, as the currency falls short on practicality, it’s tough to validate its lofty market cap at this time.
Its volatile price seems solely driven by erratic hype cycles spurred by tweets from popular individuals. Amidst an ocean for cryptos, SHIB lacks a competitive edge, making an investment in the token a massive gamble at this point.
OG Fan Token (OG)
The OG Fan Token (OG-USD) recently caught the attention of crypto enthusiasts after its price shot up over 340% within a mere 48 hours.
However, the fan crypto project is another flash-in-the-pan project offering little value to investors. It’s essentially a fan token for an eSports organization that has made a name for itself in popular Dota 2 and CS: GO tournaments worldwide.
As my fellow InvestorPlace colleague Omor Ibne Ehsan puts it, “The valuation of this crypto seems absurd.” OG is far from being the most popular eSports team, yet its fan token has a market cap comparable to its industry leader in Faze.
This disparity becomes even more baffling when considering OG’s significantly weaker online community across all social media platforms. Consequently, OG-USD appears overvalued, with a downward trajectory in the long run.
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