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Warning! 3 Cryptos That Are Too Risky to Own Right Now.


  • These cryptocurrencies have limited practical usefulness and limited potential for significant gains in the upcoming period of increasing market prices.
  • Shiba Inu (SHIB-USD): The token has recently faced constant challenges and struggles to get new users.
  • Dogecoin (DOGE-USD): DOGE’s most prominent asset remains to be its community despite its
  • Floki Inu (FLOKI-USD): Forecasts on the price of Floki Inu range from optimistic to pessimistic.
risky cryptos - Warning! 3 Cryptos That Are Too Risky to Own Right Now.

Source: shutterstock.com/eamesBot

Traders must meticulously pick the ventures they wish to invest in long-term in the digital currency market. Many crypto projects remain flawed or predatory, which puts investors in a difficult position. Risky cryptos have proliferated as crypto valuations surged and investors focused on profits over substance.

Regulatory crackdowns following the FTX scandal have increased concerns among investors, with governments worldwide seeking to establish new precedents that could alter the industry. 

Here are three risky cryptos that investors should avoid.

SHIB-USD Shiba Inu $0.00001
DOGE-USD Dogecoin $0.08
FLOKI-USD Floki Inu $0.000033

Shiba Inu (SHIB-USD)

Concept art for the Shiba Inu cryptocurrency.
Source: Shutterstock

Shiba Inu (SHIB-USD) has been a volatile investment option for investors, with its popularity mainly driven by memes and the success of Dogecoin.

It has no unique advantage over other digital currency options, making it a poor choice for ongoing investment.

Shiba Inu’s team has been trying to increase adoption through Shibarium, a layer-2 scaling solution. This initiative aims to enhance transaction speeds and reduce user costs and has applications in various areas such as gaming, NFT, and the metaverse.

Santiment’s data shows that the number of new participants joining the Shiba Inu network has dropped by 30% in the past two weeks, going from 1,624 on April 16 to 1,147 on April 25.

The NVT ratio for the Shiba Inu network suggests that the current prices of SHIB are overbought. This ratio measures the network’s value compared to its transactional activity by dividing the market capitalization by daily transaction volume.

Despite the progress made by Shiba Inu, its price depends mainly on unpredictable hype cycles, often triggered by tweets from famous individuals. 

While these may cause short-term gains, they are volatile and challenging to forecast.

Dogecoin (DOGE-USD)

One Golden Dogecoin Coin on keyboard, Meme coins
Source: Zarko Prusac / Shutterstock.com

Dogecoin (DOGE-USD) originated from Luckycoin, a defunct cryptocurrency created by copying and changing its source code. The original digital currency, Bitcoin, served as the inspiration for Dogecoin’s architecture.

Dogecoin is a crypto created for fun without significant development plans. 

It mainly depended on Elon Musk’s sense of humor and favorable market conditions in 2021, and its price surged by more than 10,000%. Nevertheless, it has experienced a dramatic decrease in worth, similar to other digital assets, showing flaws in its basic framework.

DOGE experienced a significant drop on 19 April after a significant but erratic surge. Like other cryptocurrencies, the meme-based coin plunged below its 200 DMA at 8.3 cents. Its price is currently similar to its 50 DMA, which is around 7.9 cents.

The volume of DOGE has been declining since April 3, creating an uncertain outlook for the cryptocurrency. To regain confidence, bullish investors must drive the price up to 8.5 cents soon. 

However, if they fail to do so, DOGE may fall back to soft support at 7 cents due to its volatility.

Although Dogecoin may seem lighthearted and amusing, it is not a wise investment option. Unlike stablecoins, backed by assets, or Ethereum, which contributes value to the financial system, Dogecoin does not offer such benefits. 

Apart from its entertainment factor, the most significant advantage of Dogecoin is its community.

Floki Inu (FLOKI-USD)

Floki Inu price predictions. An image of a corgi wearing a horned viking helmet above text saying Floki Inu on a black background.
Source: Zie Project/ShutterStock.com

Continuing in the pattern of Dogecoin (DOGE) and Shiba Inu (SHIB), Floki Inu (FLOKI) is the most recent addition to the meme coin universe. It features a Shiba Inu in its branding, similar to its predecessors.

Floki Inu, a meme-based cryptocurrency named after Elon Musk’s pet, has gained massive popularity because of its three-pronged approach of meme status, utility, and charitable endeavors, setting it apart from other meme coins.

FLOKI is the token linked to the Floki Inu project designed to operate on the Ethereum and Binance Smart Chain (BSC). It complies with ERC-20 and BEP-20 standards, and users can easily bridge FLOKI tokens between the two chains for storage and transactions.

However, unlike other meme coins, the value of Floki is still subject to the influence of high-profile individuals like Elon Musk. 

FLOKI’s high volatility is closely tied to Elon Musk’s tweets, which can cause rapid price fluctuations. With a currency volatility index of 13%, it is one of the most unstable cryptocurrencies. However, due to the absence of technical solutions, unlike Shiba Inu and Dogecoin, FLOKI may need help to sustain its price in the long run.

It’s essential to take caution before investing in Floki Inu, as with all sub-penny cryptocurrencies. These investments can decrease in value as rapidly as they can appreciate, with drops of 80% or more not uncommon.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/warning-3-cryptos-that-are-too-risky-to-own-right-now/.

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