As past crypto bull markets have shown, quick riches often lead to sudden crashes. Recent declines in high-risk cryptos signal caution. Some tokens lack utility and face obsolescence, making them risky investments. This has led to the rise of overvalued cryptos for 2024 to avoid.
The 2022 cryptocurrency crash highlighted the importance of thorough research before investing. Quick-profit schemes and even well-known cryptos can suffer massive losses. Many of the top meme coins still remain near the top of the market capitalization standings, but I’m willing to bet that’s about to change.
Here are three of the top cryptos I think investors shouldn’t be adding in August 2024.
Dogecoin (DOGE)
Dogecoin (DOGE-USD) is intriguing but risky, often sparking strong opinions. Its disassociation from other cryptos can create speculative chances. While it gained slightly in the past week, uncertainty clouds its future direction.
Dogecoin’s limitations, such as a lack of smart contracts and restricted integration, lead experts to advise selling. Its value, currently around 6 cents, has dropped considerably from its 2021 high of 74 cents. Indeed, consistent instability continues to prompt recommendations to avoid or sell DOGE. All in all, it’s one of those overvalued cryptos for 2024.
The token’s value hinges on sentiment and news, like other meme coins, making its long-term worth unpredictable. Dogecoin is risky now, so potential investors should be cautious.
Shiba Inu (SHIB)
Shiba Inu’s (SHIB-USD) shortcomings, including delayed Shibarium launch and token burning issues, raise doubts about its future. Meme coins like Shiba Inu have struggled to deliver, facing tough competition and potential loss of long-term appeal.
Before investing in SHIB, investors should question its purpose as a cryptocurrency rooted in humor. Derived from Dogecoin, SHIB raises doubts about its legitimacy. Its price movement often links to Elon Musk’s dog-related tweets. Allocating funds to SHIB might lead to disappointment.
SHIB lacks utility and has displayed poor performance, declining over 40% in the past half-year. Its extreme volatility, with 5% and 8% price swings in 24 hours, adds to concerns. Trading at fractions of a cent raises valuation challenges. This is a cryptocurrency to steer clear of.
Pepe Coin (PEPE)
Pepe (PEPE-USD) falls in line with other meme coins like Dogecoin and Shiba Inu. While each meme coin has unique memes, they lack real-world utility, except for Dogecoin, which maintains speculative value. Pepe and similar meme coins without utility are likely to face challenges in the long run.
Pepe’s timing is too late to replicate DogeCoin’s success. While it caught retail investors’ attention, it’s unlikely to replace Dogecoin. The internet is filled with tales of PEPE’s profitability, but its future is uncertain. Based on other meme tokens, PEPE might eventually plummet, affecting retail investors who invested in it.
This makes it one of those overvalued cryptos for 2024.
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.
