In the cryptocurrency world, overlooked digital currencies are gaining value, creating a complex landscape. Discernment is crucial, especially in identifying cryptos with little upside before potential obsolescence. Recent gains may not be sustainable, highlighting the need to pinpoint resilient cryptocurrencies. Reflecting on the crypto journey underscores volatility and rapid shifts.
Here are three cryptos to sell, facing significant headwinds.
Dogecoin (DOGE-USD)
Launched in 2013, Dogecoin (DOGE-USD), the world’s first meme coin, originated as a satirical cryptocurrency by Jackson Palmer and Billy Markus. Despite its humorous beginnings, Dogecoin operates more efficiently than legacy blockchains, supporting one-minute block times for wallet-to-wallet transfers, in contrast to Bitcoin’s 10-minute block time. Additionally, Dogecoin unexpectedly gained significant investment traction, evolving into the largest memecoin globally in H1 2021 with an astounding 15,000% price surge.
Notably, it boasts high-profile holders like Elon Musk and Snoop Dogg, but its speculative nature, influenced by social media, poses challenges for long-term success. Dogecoin faces challenges with a lack of competitive advantages, relying on speculation and hype rather than practical use. Concerns about its unlimited supply, regulatory uncertainties, and a 15% year-over-year drop contribute to doubts about its long-term viability. Investors may find more stability and credibility in established cryptocurrencies like Bitcoin and Ethereum.
Internet Computer (ICP-USD)
Internet Computer’s (ICP-USD) initially gained attention with promises of a high-speed blockchain but faced a rapid decline. ICP’s value is not solely tied to Bitcoin’s volatility; its fundamentals, including functionalities like holding money and staking through the Network Nervous System (NNS), play a crucial role. The NNS, operated by a DAO, allows users to engage in open governance by staking ICP utility tokens in neurons, participating in decision-making through voting on submitted proposals.
Launched at $400 in May 2021, it quickly dropped below $50 by July, losing over 80%. Criticisms included accusations of secret transactions and prioritizing profit over early supporters’ interests. Attempts to revive its fortunes in the NFT market and tokenized Bitcoin swaps have yielded underwhelming results.
Shiba Inu (SHIB-USD)
Shiba Inu’s (SHIB-USD) persistent low value can be attributed to its massive circulating supply of 589 trillion coins, far surpassing the supply of other notable cryptocurrencies like Dogecoin, Ethereum, and Bitcoin. This abundance challenges the likelihood of reaching a $1 price target.
Launched in August 2020, Shiba Inu initially stood out in the meme coin market, but the landscape has since become saturated with competing coins featuring Shiba Inu dogs in various themes. The proliferation of meme coins, such as Floki and DogeElon Mars, has made it challenging for Shiba Inu to maintain investor interest.
Despite being overshadowed by the likes of Bonk, which experienced a remarkable 10,000% surge in 2023, Shiba Inu’s developers now acknowledge the need to shift focus from memes to the practical task of establishing a functional blockchain for global adoption.
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.
