Investors usually don’t look for cryptos to sell, as going contrarian on this asset class hasn’t produced excellent results over the long-term. However, doing so can be very rewarding over short periods of time. The crypto market is ripe with hopeless tokens, scams, and empty promises. Going short on speculative cryptos is much less risky than shorting some of the most high-profile mainstream stocks, or even going long on some good crypto projects.
That’s because one critical piece of the puzzle that many crypto investors ignore is the dilution of a project. It is possible to judge where the price will be in the very long run by looking at its inflation metrics. By targeting inflationary cryptos (which are already hopeless), going short can be a relatively safe maneuver. But of course, I highly recommend not using any leverage. The crypto market can and will spike sometimes. Thus, having negative leverage (<1x) with many of these bets is urged.
Sui (SUI-USD)
Sui (SUI-USD) is a layer-1 blockchain and smart contract platform that claims to make digital asset ownership fast, private, secure, and accessible to everyone. Sui uses a proof-of-work consensus mechanism and a novel object-centric data model that allows assets and their attributes to live on-chain and outside of smart contracts.
Despite all these buzzword-rich promises, I think Sui is a project that has no chance of providing positive returns in the long run. This crypto project is very centralized, and tokens are held by a few influential entities that have continued to dilute this token since its inception.
As Beincrypto points out, “Data from Binance Research shows that presently SUI token’s allocation is highly centralized to the Sui Foundation, early contributors, and Mysten Labs Treasury. The three parties hold over 75% of the total supply.” The worst is also yet to come since there will be even more dilution in October.
Plus, Sui has no real advantage in its claims to offer fast and low-cost transactions either, as other projects have better scalability and security solutions. Obviously, that’s not even the main problem here. If you start seeing major dilution after merely a week of holding this token, it is probably not worth using as a transaction method.
Accordingly, Sui has little traction or adoption in the crypto space, with its recent spikes driven by what appears to be speculation alone. Sui has a very low trading volume and market cap, which indicates a lack of interest and liquidity. Sui also has no partnerships or collaborations with reputable or influential industry entities. It’s definitely one of the top cryptos to sell before it goes to zero.
Open Campus (EDU-USD)
Open Campus (EDU-USD) is another project that looks promising on paper, but deserves the bin. It aims to create a decentralized education platform that connects students and teachers around the world. Open Campus uses its native token, EDU, to reward users for creating and consuming educational content on its platform.
I believe the project has no merit or viability in the crypto space. First of all, I do not think any teachers will be using the blockchain to teach their students, let alone one with a token that is diluting rapidly. What’s wrong with classrooms or existing learning methods?
Indeed, this crypto has zero adoption and minimal educational content. There is news about partnerships with other projects and listings, but the main use case with this project has little merit.
STEPN (GMT-USD)
STEPN (GMT-USD) is a project that aims to create a decentralized fitness platform that rewards users for their physical activity. STEPN uses its native token, GMT, to reward users for walking, running, cycling, or doing other exercises on its platform. That’s certainly a notable cause, but if it sounds too good to be true, it probably is.
In the early days of this project, things were indeed as promised. You’d have to buy non-fungible tokens to start getting rewards in the first place. This means that his crypto project relies on new users to fund the promises made to existing users. Sound much like a Ponzi scheme! And, of course, the bubble has already burst, with GMT continuing to fall in value. Rewards are almost negligible, and new users are unheard of. Currently, this project carries a supply inflation of 83.57%, with just 18% of the total supply in circulation.
I wrote about this crypto token last year, and its profits tumbled by 90% in a matter of two quarters. It is likely much, much worse now.
On the date of publication, Omor Ibne Ehsan 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.
