A year ago, the crypto market faced a significant amount of turmoil, plunging in dramatic fashion. However, the market has since rebounded nicely, with many top tokens more than doubling over the past year.
With those sorts of moves in mega-cap projects with fundamental growth drivers, the question remains: Is it worth speculating on high-volatility meme tokens?
I think not. There’s simply too much actual innovative and disruptive potential in the crypto sector to justify investing in even higher-risk assets. With such a lens, let’s dive into three meme cryptos to sell that could leave investors disappointed in 2024.
Shiba Inu (SHIB-USD)
Shiba Inu (SHIB-USD) had its moment, rewarding early holders during a remarkable rally in 2020 and 2021. However, this project’s future prospects seem bleak. December witnessed whale accumulation, likely tied to Bitcoin (BTC-USD) halving speculation rather than genuine interest.
Investors grapple with the contrast between the allure of a one-dollar-per-token dream and the stark reality of Shiba Inu’s current value at a fraction of a penny. Beyond hype, its fundamentals pale compared to robust alternatives like Dash (DASH-USD), which offers superior benefits. Betting on this underdog in a competitive Ethereum (ETH-USD)-compatible landscape appears overly optimistic.
Short-term risks include potential sharp declines, given the concentrated supply and speculative nature. The lack of utility progress positions SHIB as a sell.
Dogecoin (DOGE-USD)
Despite new exchange listings, Dogecoin (DOGE-USD) experienced post-correction volatility, raising concerns about its investment viability. With a 6% gain and 9% surge, DOGE recently reached an 8-cent valuation, but an RSI of 71.1 signals overbought conditions.
As other major cryptos strengthen, caution is advised in approaching altcoins like Dogecoin, emphasizing the need to discern the reasons behind the Bitcoin and Ethereum rise. Approach altcoins cautiously because of their qualitative differences.
Floki Inu (FLOKI-USD)
Floki Inu (FLOKI-USD) is headed for a potential downfall, with its lack of utility and reliance on stories and absurd narratives in the meme cryptocurrency realm. While inspired by Dogecoin, it joins a group of similarly unconventional cryptocurrencies, including Shiba Inu.
Dubbed “the people’s crypto,” Floki operates on Ethereum and Binance Smart Chain, allowing seamless token bridging. Floki Inu has an automatic 3% tax on trades, which funds its development and adoption but impacts potential returns for investors. However, the plan is to reduce the fee as funds accumulate. Floki Inu’s value is influenced by figures like Elon Musk, and its high circulating supply results in a low token price.
Following the success of Shiba Inu, various similarly unconventional crypto projects, including Floki Inu, emerged. While initially experiencing significant returns, Floki Inu’s decline can be attributed to its lack of substance. Despite marketing itself as a project with future utility, it appears more as a tactic to generate demand. Investing in Floki Inu is not advisable.
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.
