As we navigate the choppy financial markets this year, it is evident that not all that glitters in the crypto world is gold. Hence, reevaluating your holdings and identifying cryptos to sell now is an opportune moment. The first half of this year saw cryptocurrencies experiencing sideways trading, with the recent downturn in May particularly significantly impacting multiple cryptos and many digital coins. Safe and practical projects with real-world utility weathered the storm, while risky cryptocurrencies faced a sell-off as investors sought to rebalance their portfolios.
Despite the long-term promise of the crypto market, not all projects are equal. This move is crucial to mitigating risk in the current volatile landscape.It’s essential to differentiate between the wheat and the chaff. Now might be the perfect time to offload those high risk cryptocurrencies and avoid certain cryptos that could potentially derail your portfolio over the long term.
Shiba Inu (SHIB)
Shiba Inu (SHIB-USD) continues to navigate some choppy waters, with a plummeting price that sits roughly 70% from its all-time highs. Its bulls have always viewed SHIB as the next Dogecoin, but that optimism has been deflated, particularly after maverick entrepreneur Elon Musk confirmed he held no SHIB tokens.
Several potential tailwinds that could have boosted SHIB’s prospects have not yet materialized, weighing down its attractiveness. The much-talked-about Shibarium, Layer-2 scaling solution, has been delayed, and its future functionality is questioned. Moreover, the initiative to burn a portion of the enormous supply of SHIB tokens to boost prices has been less effective than hoped.
Adding to the list of disappointments is the overhyped Shiba Inu metaverse project. Hence, with SHIB’s practical use cases yet to come to fruition and its price mainly driven by erratic hype cycles, it’s best to steer clear of SHIB at this time, this makes it one of those cryptos to sell now.
Decentraland (MANA)
Decentraland (MANA-USD), once a prominent contender in the blockchain-based metaverse, now finds itself in a precarious position. Riding on the coattails of Meta Platform’s (NASDAQ:META) rebranding and major online real estate sales, MANA shot up to a high of $5.85 in late 2021. However, since then, its value has plummeted by over 80%.
The tech titans that once championed the metaverse revolution are now pulling back in a major way. Meta’s shift of focus towards established technologies like artificial intelligence casts long shadows over its metaverse ambitions. Adding to this grim picture, the worldwide shipments of VR/AR devices have seen a significant slump of 21% in 2022, as the International Data Corporation reported.
This dwindling interest in VR/AR devices, the building blocks of the metaverse, suggests a broader retreat from this shared virtual platform. It’s best to offload MANA and other related cryptos in such a precarious landscape. This makes it one of those cryptos to sell now.
Solar (SXP)
Solar (SXP-USD) went on a dazzling run recently, skyrocketing by a jaw-dropping 260% in a week. This meteoric ascent was primarily backed by Korean investors, stirring up intrigue and speculation. However, as with altcoins, Solar’s real-world utility remains unattractive.
The top ten SXP holders hold a staggering 99.1% of the total supply, a testament to the token’s centralization. The domination of a select few investors casts a long shadow over Solar’s long-term price movements.
Moreover, the Solar token has just 53 validators across the network. Hence, Solar’s recent performance might be more of a flash in the pan than anything else. Additionally, the token is down more than 98% from its all-time high price of 25 cents.
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
