The cryptocurrency market has started essentially flat in 2024, but there is plenty of news that can inspire optimism. Bitcoin (BTC-USD) ETFs are now live and Ethereum (ETH-USD) ETFs are on the way. Cryptocurrency is becoming a greater part of the financial system that should lead to further gains.
Despite that optimism and the expectation of future growth, it is always smart to avoid troublesome investments. That’s what this article will be about: Doomed cryptos to dump this year.
Investors are prepared to take advantage of Ethereum ETFs ,which should launch in May. They should not include the cryptos below. Let’s take a look at them.
Blur (BLUR-USD)
Blur (BLUR-USD) had a very difficult year in 2023. The numbers don’t lie: It began the year, and it’s publicly traded life, at $5. It immediately fell below $1. Then it rose above $1 very quickly only to again fall below that level. It hasn’t returned since.
Anyone can quickly surmise as much by simply looking at its price chart. The question is what does Blur do and why should investors be bearish about that? The answer is that Blur is a non-fungible token (NFT). Some say that those who invest in it are given governance over that market.
Yet, NFTs simply haven’t lived up to the hype that surrounded them when they were first floated. Despite the fact that Blur offers zero fee NFT sales there’s simply not enough to substantiate it as an investment.
Some pundits have suggested that OpenSea — the largest NFT marketplace — is for sale because Blur offers such strong competition. The notion seems absurd given Blur’s short history. If it were a strong competitor, it wouldn’t have fallen from $5 to $1 to $0.60, where it now trades.
ApeCoin (APE-USD)
ApeCoin (APE-USD) is the most notorious of the NFT-based cryptocurrencies. The cryptocurrency is best known for the Bored Ape Yacht Club. It’s a collection of 10,000 NFTs marketed as being ‘unique’. Yet, how unique is something that draws its uniqueness from slight variations to the same template 10,000 times?
It is a uniquely idiotic project, I’ll give it that. The cheapest Bored Ape costs a mere 24.75 ETH, or roughly $57,000. There are thousands of assets that any investor would be better served to direct such an amount of capital. The Bored Apes are unique in that the word non-fungible implies uniqueness. That’s it.
However, in 2024 it’s fairly clear that the scam is up. At least based on the price of ApeCoin. It’s down roughly 71% over the last 12 months. That said, if people do wish to continue to buy Bored Apes, those interested in recent sales trends can check out this link.
Dogecoin (DOGE-USD)
Dogecoin (DOGE-USD) is the grandfather of all meme coins. It has established a unique position that is likely to manifest as longevity. In other words, Dogecoin will persist no matter what happens.
Further, Dogecoin is a great mechanism for playing volatility within the crypto market. Traders continue to make fast gains when bullishness hits the crypto market and DOGE is a great coin to take advantage of that. In short, there is real utility, in the sense that it is useful for traders and has some predictability there.
Dogecoin continues to have such a strong following precisely because it was able to establish a unique position earliest. All kinds of meme coins have come after it but none hold the same utility. Again, that’s the bullish narrative underpinning Dogecoin but not one that I personally believe in. I see Dogecoin as one of the doomed cryptos to dump in the near future.
Remember, not even Dogecoin’s creators believe it was anything more than a joke.
On the date of publication, Alex Sirois 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.
