Cryptocurrencies are gaining once again. After a tough 2022, the crypto world looks brighter as investors gravitate toward the volatile asset class. Bitcoin (BTC-USD) and Ethereum (ETH-USD) are leading the way. The rapid movement once again indicates that extreme volatility is the name of the game in the crypto world. However, other digital currencies are also making waves. These are the controversial cryptos to watch – the most controversial cryptocurrencies with high risk and reward potential.
Controversy is often associated with cryptocurrencies, as some projects have been criticized for their questionable business models, lack of transparency, and dubious legality. Despite these concerns, certain controversial crypto coins and tokens have the potential to provide substantial returns for investors who are willing to take the risk.
This article will examine the top three most controversial crypto projects with huge potential. These controversial crypto tokens have caught the attention of investors and experts alike and could be worth considering for those looking to invest in high-risk, high-reward opportunities.
At the same time, these cryptos are worth keeping one thing in mind. These cryptos are not the most stable for any portfolio. Hence, if you are looking for stablecoins, this article is not the best. But if you are willing to take on some extreme risk for extreme reward, read on. And when you are done with this list, take a look at this article from Josh, which explores several cryptocurrencies that are worth a place in your portfolio.
Let’s explore the world of controversial cryptocurrencies and see what these digital assets offer.
| Symbol | Cryptocurrency | Price |
| XRP-USD | XRP | $0.43 |
| BNB-USD | Binance Coin | $315.13 |
| SHIB-USD | Shiba Inu | $0.000009097 |
XRP (XRP-USD)
XRP (XRP-USD) has not had the explosive growth of the biggest cryptocurrencies in 2023. Bitcoin, Ethereum, and Solana (SOL-USD) have increased by 67.09%, 54.40%, and 108.01%, respectively. XRP has only increased by 25.27% during the same time frame. This trend has left investors wondering if XRP is a failing cryptocurrency or a great investment opportunity.
The legal case by the Securities and Exchange Commission against Ripple Labs, the creator of XRP, has been in progress since December 2020. American crypto exchanges have suspended buying, selling, and exchanging XRP until the lawsuit is resolved. However, even if the lawsuit goes against Ripple, XRP still has a promising future because it is a unique use case cryptocurrency serving as a bridge currency in cross-border payments.
Ripple has made significant strides in expanding its payment network globally. It is also central to the central bank’s digital currency development.
Considering XRP’s current relative dip, investing in it might be prudent. Even if the lawsuit goes against Ripple, it may catalyze much-needed regulation in the crypto market.
In short, XRP’s performance has been unimpressive in 2023. However, its unique use case and worldwide expansion make it a potentially lucrative long-term investment.
Binance (BNB-USD)
Reports indicate that the largest cryptocurrency exchange in the world, Binance (BNB-USD), may face enforcement action from the US Securities and Exchange Commission. Whether the enforcement action will target Binance or its US-based subsidiary, Binance US, remains unclear.
It caps a whirlwind few months for Binance. The SEC is reportedly investigating Binance, Binance US, and its CEO, Changpeng Zhao, for potential violations of unregistered securities. Meanwhile, in March, the Commodity Futures and Trading Commission charged Binance, its co-founder, Changpeng Zhao, and its former chief compliance officer, Samuel Lim. That sent shockwaves in the crypto industry, putting intense pressure on its native token BNB.
It is a sharp change of fortunes for the company. After the FTX scandal, the company emerged as a champion for transparency.
Binance advocated for transparency and accountability among crypto institutions, emphasizing the need for more regulation, oversight, and safeguards for retail investors. According to Binance, the crypto industry needed to aim for “stable and clear” regulations.
However, things began to unravel earlier this year with many regulatory issues emerging for the company. The bears will argue that
Binance is a cryptocurrency exchange and a blockchain ecosystem, offering broad diversification and protection from systemic risk. It has played a prominent role in numerous significant crypto events, including assisting Ukraine and providing liquidity to FTX.
Binance has the potential to be too big to fail; its collapse could bring down the whole crypto market. However, the latest regulatory news is certainly concerning for the average investor.
Although Binance is currently the largest player in the cryptocurrency industry, further analysis is necessary before suggesting it as a viable long-term investment option.
Shiba Inu (SHIB-USD)
Shiba Inu (SHIB-USD), the meme coin, is struggling to regain its former glory in 2023. While it is up 9.88% for the year, it’s underperforming compared to Bitcoin, which is up over 60% this year.
In the past 30 days, the price of Shiba Inu has dropped by over 10%, erasing any momentum it previously had.
Shiba Inu’s expected breakthrough was the launch of Shibarium, a Layer-2 scaling solution that would propel its growth. However, Shibarium has been delayed and is still in beta test mode.
Shibarium, a Layer-2 scaling solution, was expected to be the primary catalyst to take Shiba Inu to the next level. However, despite more transactions on the blockchain and the number of wallets increasing, development on top of the blockchain is yet to happen. Similarly, coin burning, the process of taking coins out of circulation, has not occurred fast enough.
The Shiba Inu metaverse project, initially hyped as being at the forefront of the metaverse trend, has failed to live up to expectations. The game experience does not yet exist, and it has simply become another way to burn Shiba Inu coins.
On the publication date, Faizan Farooque did not hold (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.
