The cryptocurrency market witnessed 37% year-to-date growth in 2023. However, the bullish market can mask the weakness of some assets. Investors should consider shedding unwanted cryptocurrencies as we approach 2024. Better yet, they should take note of which cryptos to avoid in the coming year.
All the cryptocurrencies mentioned in this article, in my view, suffer from excessive hype and a lack of practical applications. Investors should focus on cryptocurrencies with genuine utility. Those discussed here fall short in this regard, and I predict their eventual downfall. This may occur this month, this year, or in the near future, but it’s advisable to part with them in November.
For those holding the listed cryptos below, selling them is advised, while potential buyers should consider these cryptos to avoid.
Shiba Inu (SHIB)
Shiba Inu (SHIB-USD), inspired by the same Japanese dog breed as Dogecoin (DOGE-USD), has its unique identity. The “woof paper” guides its development, and it’s supported by a loyal ShibArmy community. As a result, SHIB saw remarkable growth in 2021, despite early skepticism.
SHIB-USD may not be recommended, but investors still flock to it. It has surged 540,000% over its short existence, transitioning from fractions of a penny to fractions of a penny with fewer zeros after the decimal point. Now that the initial novelty has faded, it’s a meme token that essentially amounts to clever marketing.
Furthermore, the stagnant number of SHIB token holders suggests declining interest. SHIB’s turbulent journey underscores the volatility of cryptocurrencies with limited utility. As investors grow more aware of the instability and lack of practical applications, it’s wise to mark SHIB as one of the cryptos to avoid in today’s landscape.
Floki Inu (FLOKI)
Floki Inu (FLOKI-USD), a next-gen meme coin inspired by Shiba Inu, blends fun with utility in a DeFi ecosystem. Named after Elon Musk’s dog, this “people’s cryptocurrency” boasts 400,000 wallet holders and a significant market cap. It aims for adoption.
Floki Inu attempted to introduce utility through a Viking-themed NFT gaming metaverse called Valhalla, but it remains disconnected and unproductive.
Swap any Shiba Inu meme coin for another, and the story remains unimpressive. Whether it’s NFTs, metaverse, or other fads, it’s a risky mix. These coins are either heading for instability or will serve as speculative tools. Steer clear of Floki Inu and its kin.
4-CHAN (4CHAN-USD) is prone to inflation and dilution, lacking vital supply control methods like burning or staking. Governance and community involvement are weak, offering holders no say in the project’s path. Additionally, the smart contract’s malleability raises security and trust issues, making 4-CHAN unsuitable for most cautious, long-term investors.
Market cap data was missing due to its newness. Initially showing promise, 4CHAN stalled before regaining momentum. Potential hinged on viral recognition or endorsements, like Elon Musk’s. To this day, high inflation, no supply control, feeble governance, and creator manipulation deter conservative investors. In this case, the risks outweight potential rewards, so investors should be careful.
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.