The crypto market has dazzled many this year, marking impressive rallies for industry stalwarts. With Bitcoin (BTC-USD) boasting a staggering 60% gain since January and Ethereum (ETH-USD) not far behind with its 31% rise, it’s evident we’ve distanced ourselves from the chilling crypto winter of 2022. However, for every digital success story, there are cryptos to sell. Either they’re struggling to gain traction or falling prey to unsavory pump-and-dump tactics, leaving investors vulnerable.
Moreover, a pronounced disparity is emerging. On the one hand, we see stalwarts such as Bitcoin and Ethereum breaking barriers; on the other, countless lesser-known cryptos grapple in a market that’s still notably fragmented and unpredictable. However, in recent years, the financial landscape has shifted. Stock scams, overvaluation and exuberance retreated as fundamentals regained prominence. Consequently, for discerning investors, this is a wake-up call. It’s time to part with the underperformers and protect your portfolio from pitfalls.
Shiba Inu (SHIB-USD)
Heralded as the “dogecoin killer,” Shiba Inu (SHIB-USD) leans heavily on the meme coin reputation popularized by Dogecoin (DOGE-USD) rather than genuine innovation. This strategy astonishingly shot its market capitalization to over $4 billion. Yet, a staggering 77% of SHIB’s addresses are in the red, and its value has plummeted over 30% year-over-year.
While it’s commendable how Shiba Inu managed to etch out its place in the crypto limelight, signs now point to its fleeting fame. The promise of the much-touted Shiba Inu metaverse project fizzled out, leaving many disappointed. Moreover, the static count of around 1.24 million SHIB token holders hints at diminishing interest.
Shiba Inu’s rollercoaster ride exemplifies the volatile nature of many cryptocurrencies, especially those lacking solid utility or purpose. As investors increasingly recognize the inherent instability and lack of practical use cases, steering clear of SHIB seems prudent. When it comes to the current crypto landscape, SHIB might just be one to bid adieu to.
Pepe Coin (PEPE-USD)
Outshining even Dogecoin in unpredictability, Pepe Coin (PEPE-USD) has surged into the crypto spotlight with wild price swings. Lacking tangible utility, this token has seen price leaps and dives that would make any investor dizzy. PEPE’s current profitability sparks intrigue, but mirroring past meme tokens, it may unexpectedly plummet, proving disastrous for retail investors.
Moreover, Pepe has plunged 55% in just the last three months, with September proving particularly harsh. Its valuation seems hinged more on random spikes rather than solid fundamentals. Investing in Pepe seems unpredictable and risky, like rolling dice in the dark. While the allure of quick gains might be enticing, the rollercoaster ride of Pepe Coin’s volatility strongly warrants caution.
Decentraland USD (MANA-USD)
Amid the buzz surrounding the metaverse, Decentraland USD (MANA-USD) carved out a notable space, particularly after the 2021 value surge linked to Meta Platforms’ (NASDAQ:META) rebranding and significant real estate transactions. However, the sheen quickly wore off, with MANA shedding a staggering 94% from its highs. The skeptics might have a point, considering the bigwigs of technology, including Meta, are now treading cautiously around the metaverse concept.
Moreover, the notable shift towards established technologies like artificial intelligence hints at the metaverse potentially taking a backseat, dimming MANA’s outlook. Adding to the concern, MANA has plummeted 59% year-over-year.
Furthermore, a noticeable dip in enthusiasm for VR/AR devices, the metaverse’s cornerstone, hints at a wider departure from this digital realm. As the winds shift, Decentraland finds itself navigating treacherous waters. Given these factors, holding onto MANA seems more like gambling than investing. A strategic retreat from such volatile assets might be wise; it seems MANA increasingly looks like a crypto to avoid.
On the date of publication, Muslim Farooque did not hold (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.