While investors typically avoid selling cryptocurrencies due to contrarian strategies yielding limited long-term gains, adopting this approach can be lucrative in the short term. The crypto market is rife with dubious tokens, scams, and unfulfilled commitments. Shorting speculative cryptos involves lower risk compared to shorting major mainstream stocks or investing in solid crypto projects.
While major cryptocurrencies like BTC and ETH thrive, numerous smaller digital assets face challenges, leading to a divide between prominent and lesser-known cryptos. Given the fragmented and volatile nature of the crypto market, we present three cryptos to consider selling now before potential declines.
Fetch.ai (FET-USD)
Fetch.ai (FET-USD) is an AI-based decentralized network enabling interactions among autonomous economic agents, applicable in various sectors like smart cities, supply chain management, and decentralized finance. As demand for AI-driven innovations rises, tokens like Fetch.ai gain significance. FET token, within the Fetch.ai ecosystem, recently surged by 90% in a month, now trading at 43 cents with a market cap of $356 million, placing it as the 113th top cryptocurrency.
Fetch.AI, distinct from OpenAI or ChatGPT, is capitalizing on a broader trend. As the 139th cryptocurrency by market cap, it has surged over 15%, with a peak of 21% in a day. This contributes to a 269% yearly rise and a 529% rebound from late November lows. Despite this growth, Fetch.AI still lags by 73% from its 2021 peak. Previous highs at $1.26 stand around 269% higher from its current level.
Dogecoin (DOGE-USD)
In an unexpected shift, Dogecoin (DOGE-USD) has surged from weakest to top performer among the top 10 cryptocurrencies. Elon Musk’s Twitter rebrand announcement led to a 322% spike in trading volume on July 24th and a 5.1% DOGE price rise. Its value seems linked to sentiment and headlines, akin to meme coins. The long-term outlook remains uncertain and risky, urging caution for potential investors.
Dogecoin’s downsides extend beyond inflation; its blockchain lacks smart contracts, restricting DeFi and NFT integration. Most experts recommend selling due to these limitations, fueling 2023 skepticism.
Currently, DOGE trades at 0.76 cents, significantly down from its all-time high of 74 cents in May 2021. Despite occasional spikes, like reaching 13 cents last November, DOGE’s price tends to fall. Due to its instability, it’s recommended to avoid Dogecoin and consider selling it.
Axis Infinity (AXS-USD)
Axie Infinity (AXS-USD) gained crypto market notice, yet recent regulatory focus sparked worry among token holders. AXS fell 36% in two weeks in June, nearing two-year lows, signifying waning investor faith due to SEC’s security classification.
As Axie Infinity’s token values fall, the game becomes less attractive for newcomers. They’d need to buy Axies to earn lower-value SLP and AXS units. In 2022, player count plunged nearly 85%, from 63,240 in January to 8,950 in June, mirroring AXS’s 80% price drop.
Once a crypto standout, AXS now faces uncertainty. P2E dapps’ appeal fades, Axie’s hack last year and SEC’s security classification harm its outlook. Axie’s ecosystem weakened after a massive $615 million dollar cyber theft in March 2022. The SEC’s potential security classification worsened its value decline amid regulatory pressures. With U.S. court decisions pending, AXS’s future demand and liquidity remain uncertain.
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.
