In the booming cryptocurrency market, it’s crucial for smart investors to identify cryptos for selling, especially amid the hype-driven rallies that have taken valuations to unsustainable levels (in many cases). Many altcoins and meme coins lack real-world value, leading to a dim long-term outlook. However, during market surges, traders can capitalize on price spikes.
Long-term investors should be cautious, as high valuations pose collapse risks in a market filled with “pump and dump” schemes. Being vigilant helps you navigate the unpredictable crypto market and find selling opportunities.
That said, here are three cryptocurrencies to sell before they lose value.
Dogecoin (DOGE-USD)
Nearly three years have passed since Dogecoin (DOGE-USD) made waves in the crypto world. While it still ranks among the top cryptocurrencies, achieving the coveted $1 mark, a 14-fold increase, is a distant prospect for this token for three main reasons: lack of utility, unlimited tokens and supply and demand challenges.
Unlike Bitcoin (BTC-USD), Dogecoin’s constant issuance challenges long-term price stability, as supply and demand greatly affect cryptocurrency values. With almost 5 billion new coins added each year to an existing 141 billion, it faces a scarcity issue. Overcoming this dynamic is crucial for Dogecoin to reach $1.
Dogecoin’s future looks bleak. I think the chance this token multiplies from here is improbable due to the token’s supply and demand dynamics. Its only hope lies in regaining the spotlight, making investments in established cryptos like Bitcoin and Ethereum (ETH-USD) a wiser choice.
Rocket Pool (RPL-USD)
Rocket Pool (RPL-USD) operates by pooling users’ Ethereum and staking these tokens on its liquid staking network via a network of node operators. Users deposit ETH into a smart contract, which mints rETH as a representation of their staked ETH. rETH is tradable and used for gas fees. Node operators validate blocks and share rewards with stakers.
The token saw a substantial surge to almost $60 in April and May. However, it has since slipped to about $25, indicating rising awareness of project issues and risks, making RPL a potential sell.
Rocket Pool faced concerns about smart contract risks due to its reliance on complex smart contracts for staking, rETH, and RPL. A critical bug delayed its launch in October 2021, highlighting potential issues. Additionally, Rocket Pool’s high annualized inflation rate, around 89.45%, may deter long-term investment.
4-Chan (4CHAN-USD)
The formerly popular 4-Chan (4CHAN-USD) meme coin’s initial momentum in early June has faded quickly. The 4-Chan Token debuted in trading in May, with a vast total supply of 100 trillion tokens. It surged significantly over a two-week span but plummeted as early investors cashed in.
Market cap data is unavailable due to its newness. Initially, 4CHAN showed promise, then stagnated, but later regained momentum. Its future potential may depend on viral recognition or endorsements from influential figures like Elon Musk. However, since June 21, its price plummeted, leading some to believe it could be worthless. This coin suffers from high inflation, no supply control, weak governance and susceptibility to manipulation by its creator. These issues deter conservative investors from considering it, as the risks outweigh the potential rewards.
On the date of publication, Chris MacDonald 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.
