In the ever-changing landscape of cryptocurrencies, it’s imperative to stay vigilant. The market is awash with cryptos to sell, characterized by high risk, overvaluation, and volatility. These projects offer little utility, often serving merely as vehicles for speculative trading. Hence, with the looming economic uncertainties, it might be the right time for crypto investors to reassess their portfolios.
This could mean moving away from these high-risk cryptos and instead focusing on more established names or promising newcomers. As the potential for a recession grows, we’ll likely see stalwarts in the space in Bitcoin (BTC-USD) outshining its counterparts, while many overvalued cryptos and meme coins are likely to be left behind. It’s crucial to remember the majority of these overvalued cryptos may not perform well in the next cycle. Let’s take a look at our list of top cryptos to sell now.
Cryptos to Sell: TRON (TRX-USD)
Despite its glossy exterior, the TRON (TRX-USD) project carries ominous warning signs that are tough to ignore. I agree with my fellow InvestorPlace writer Omor Ibne Ehsan, who feels that Tron’s stablecoin initiative, USDD, eerily mirrors the ill-fated Luna (LUNA-USD) project. With a dropping collateral ratio of less than 120% and under $385 million BTC as collateral, USDD is likely to follow the unfortunate trajectory of Luna.
Moreover, the red flags extend beyond the shaky USDD project. Tron’s tokenomics are from inspiring, with an inflationary supply of 90 billion TRX, without a hard cap or burning mechanism, hints at unavoidable dilution of value for its investors. Adding to these concerns, Tron’s centralized governance model, where just 27 super representatives hold sway over the network, raises questions about equitable decision-making.
Cryptos to Sell: Dogelon Mars (ELON-USD)
Dogelon Mars (ELON-USD) is another meme token that looks to capitalize on the Dogecoin (DOGE-USD) frenzy and the popularity of Elon Musk. However, a glaring concern is the heavy concentration of tokens, with over 40% controlled by the Methuselah Foundation. This imbalance raises eyebrows and warrants caution for the savvy investor.
There is a strong possibility that the foundation will start unloading its holdings, and true enough, we’re seeing tokens being shifted from the main wallet to several others. The intention is to sell 3.14% of ELON tokens annually. While this may seem modest, the added selling pressure and waning meme coin hype could erode the crypto’s value over time. Despite the promise of controlled selling, the demand for the token is too tepid to sustain its long-term viability.
Cryptos to Sell: Internet Computer (ICP-USD)
Internet Computer (ICP-USD) gained popularity in the crypto world with promises of a high-speed blockchain that would potentially outshine existing layer-1 networks. The non-profit Dfinity, the brainchild behind this project, garnered investments from some of the leading top-tier crypto firms, such as Andreessen Horowitz. However, despite the fanfare and anticipation, the ICP project was in a downward spiral.
The token launched at an impressive $400 in May 2021, but the wheels quickly came off the bus. By July, it was trading well below $50, nosedived more than 80%. The project’s rapid decline was marred by accusations of secret transactions, with critics arguing that Dfinity prioritized profit-taking over the interests of its early supporters. ICP ventured into the NFT market to revive its fortunes and tokenized Bitcoin swaps. However, the results have been underwhelming so far.
ApeCoin (APE-USD), birthed by the popular Bored Ape Yacht Club (BAYC), appears to be riding the coattails of the current non-fungible-token (NFT) hype. While this token managed to capture investor interest in its early stages effectively, it’s been mostly treading water since last spring.
The BAYC team has been throwing everything but the kitchen sink at their project, from game development announcements to metaverse expansions and generous staking rewards. However, the sustainability of these efforts is questionable, to say the least.
The popularity of the token is inherently linked to the interest in the NFT collections dished out by the BAYC. Despite all the fanfare, experts have raised the alarm about BAYC’s long-term popularity, artificial celebrity endorsements, and questionable imagery, which should weigh down ApeCoin.
While the metaverse has its proponents, it’s hard to ignore the skeptics who view it as a passing fad. Decentraland (MANA-USD) is, one of the biggest players in the blockchain-based metaverse, serves as a case in point. After a major surge in value in late 2021, fueled by Meta Platforms’ (NASDAQ:META) rebranding and its impressive online real estate sales, MANA has seen its value plummet, losing more than 80% of its value from its peak.
Moreover, tech giants, including Meta, that were pushing the metaverse revolution have put the brakes on their efforts to commercialize the phenomenon. Meta, in particular, is looking to shift its focus towards more established technologies such as artificial intelligence, potentially placing its metaverse endeavors on the back burner. Such a shift suggests a challenging landscape for MANA as it navigates an uncertain future.
OG Fan Token (OG-USD)
As the name suggests, the OG Fan Token (OG-USD) is a fan token for the popular eSports organization OG. It jumped on the radars of crypto investors after experiencing a sharp increase in value, quadrupling in just two days. However, this surge was short-lived, with the token’s price beginning to rapidly descend.
The obvious knock on the crypto is its insane valuation. Interestingly, despite OG not being the most popular eSports team, its fan token’s market capitalization is similar to the industry leader in FaZe (NASDAQ:FAZE). This discrepancy is particularly puzzling when considering that Faze is trading on the stock market while OG-USD is just a fan token. Furthermore, when one considers OG’s relatively weaker online community across various social media platforms, the valuation of the OG token seems even more inflated.
Shiba Inu (SHIB-USD)
Shiba Inu (SHIB-USD) is a popular meme token and arguably the epitome of volatility in the crypto sphere. It is currently down more than 80% from its all-time high and is likely to wander adrift for the foreseeable future. Supporters of the token will have hoped it would’ve benefited from the buzz surrounding Dogecoin, but these aspirations never materialized as Elon Musk disclosed his lack of SHIB holdings.
Despite its presence across numerous exchanges and its lofty valuation, it’s tough to justify its position given its limited real-world applications. The token’s price volatility appears to be largely driven by unpredictable hype cycles initiated by tweets from influential figures. Moreover, SHIB lacks a distinct competitive advantage with abundant cryptos in the market.
Furthermore, potential catalysts, such as the Shibarium upgrade, a reduction in circulating supply, and the launch of a Metaverse project, have failed to bolster the cryptocurrency. Multiple delays and technical issues have cast a shadow over its future trajectory.