3 Doomed Cryptos to Dump in December

Stocks to sell

Bitcoin’s (BTC-USD) rally to the $41,800 mark signals a pivotal recovery. It reflects a 6% rise within a day and a resurgence in investor confidence. Yet, within this bullish momentum, discerning investors are eyeing certain cryptos to sell, particularly those with little real-world utility.

Moreover, the crypto market is tilting towards valuing robust fundamentals over speculative ventures. This shift prompts a strategic pruning of weaker assets to strengthen portfolios. Impressively, Bitcoin and Ethereum (ETH-USD) have surged by 147% and 82% year to date (YTD), respectively. This divergent performance is widening the gap in the market, separating the wheat from the chaff.

Consequently, this approach is designed to avoid potential dips and maneuver through the market’s unpredictability. Such informed decision-making is key for investors striving to adapt and succeed in the rapidly evolving world of cryptocurrencies.

Hence, in light of the market’s volatility and fragmentation, it becomes crucial to identify and offload specific cryptocurrencies.

Shiba Inu (SHIB-USD)

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Shiba Inu (SHIB-USD), initially dubbed the “Dogecoin killer,” soared to a whopping $5.2 billion market capitalization fueled by early hype.

However, investor priorities are shifting toward cryptocurrencies with real-world applications and tangible value. Hence, Shiba Inu’s position becomes less certain. Despite its commendable token-burning efforts, with over half a billion this week, the token lacks key features to sustain widespread interest.

Moreover, this year marked a downturn for SHIB. With a 20.7% decline in nine months, it reflects its underperformance in contrast to the broader market. This trend points to a growing investor skepticism about the token’s long-term viability.

Shiba Inu’s trajectory highlights the volatile nature of cryptocurrencies, particularly those without clear utility or purpose. While it has spurred price surges in the past, its trend has been predominantly downward since its sharp rise in late 2021. Despite investor hopes for a repeat of past spikes, the likelihood of such a scenario is increasingly slim, underscoring the token’s uncertain future.

Dogecoin (DOGE-USD)

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Dogecoin (DOGE-USD) has gained popularity due to endorsements by figures like Elon Musk and its role in online tipping.

Yet, it lacks a competitive edge. And this makes it an unattractive bet at this time, especially when the broader market is picking up steam again. Its value primarily stems from speculation and hype rather than real-world utility, making it a risky investment.

Another concern is Dogecoin’s unlimited supply, which may lead to inflation over time, challenging the notion of scarcity in the crypto market. Additionally, crypto regulatory uncertainty hampers its prospects for broader adoption by businesses and institutions. This further casts doubt on its long-term growth potential.

Consequently, Dogecoin’s outlook is also marked by a notable 15% drop in value year over year (YOY), reflecting investors’ waning confidence. As it depends on erratic media attention for relevance, more established cryptocurrencies such as Bitcoin and Ethereum appear as more robust investment options. They offer relative stability in a volatile market, a stark contrast to Dogecoin’s dubious trajectory.

Audius (AUDIO-USD)

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Audius (AUDIO-USD) seeks to revolutionize music streaming by empowering artists through its cryptocurrency, AUDIO. Unlike traditional platforms, Audius emphasizes creator control and earnings, challenging the status quo of music consumption. Backed by blockchain technology, it aims to secure music ownership rights and enhance fan-creator interactions. Therefore, it sets a new paradigm in the industry.

Yet, Audius isn’t without its challenges. AUDIO’s role as an incentive on Audius raises concerns about bot manipulation. Users might create fake accounts to exploit the system, undermining the platform’s integrity. This aspect of AUDIO’s design poses a risk to its goal of creating a fair and artist-centric streaming ecosystem.

Furthermore, its user base significantly lags behind behemoths like Spotify (NYSE:SPOT) and Apple (NASDAQ:AAPL) Music, substantially limiting artists’ reach to wider audiences. Additionally, as a decentralized platform, Audius grapples with the complexity of copyright enforcement. And that’s a situation that could entangle both the platform and its artists in legal complications.

On the date of publication, Muslim Farooque 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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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