By now, you probably know you can make a good bit of money trading meme coins — if you play your cards right. That might include getting in early on a meme coin, among other strategies.
What isn’t playing your cards right is putting your money in a meme coin headed for disaster. The thing with meme coins is their potential for big wins is matched only by their risk for spectacular crashes.
All meme coins can’t win — at least not at the same time. We compiled three meme coins to avoid and that might be headed for disaster.
Baby Dogecoin (BABYDOGE-USD)
Baby Dogecoin is a meme token (BABYDOGE-USD) that was created by Dogecoin (DOGE-USD) fans. Its creators have hinged its appeal on it being a dog-focused community. However, Baby Dogecoin hasn’t been able to move out of Dogecoin’s shadow.
Also, it’s been edged out by newer and flashier coins such as Floki (FLOKI-USD), PEPE Coin (PEPE-USD), and dogwifhat (WIF-USD). BABYDOGE was nowhere to be found during the bull run this March and has only a sliver of a change of 29% this year.
In addition, BABYDOGE’s chain activity shows people buying, but the volume isn’t strong enough to shake things up. Overall, its price behavior signals it’s not favorably positioned for long-term success and is a meme coin you want to avoid.
Shiba Inu (SHIB-USD)
Shiba Inu (SHIB-USD) came on the scene in 2020 as a self-styled Dogecoin competitor. That it has been. At the moment, it’s on par with Dogecoin in terms of community participation — usually a hallmark of meme coin success.
It has also eclipsed Dogecoin in price growth. At the moment, Shiba Inu has logged in a staggering 31,000,000% from its all-time low in 2020. By contrast, someone who bought Dogecoin has gained by 4989% over the same period.
However, SHIB’s days in the sun may be over. During March this year, when meme coins were all the rage, SHIB registered a 250% jump from January. That pales in comparison to newer meme coins such as Floki, which posted up to 700%, and dogwifhat, which hauled in up to 4,000%.
Given its record, you’d think SHIB would be one of the best-performing meme coins during one of the market’s most intense rallies, but it’s just limping along. If you’re looking for a crypto that has a future, SHIB is not one of them and is one meme coin to avoid going forward.
Smog (SMOG-USD)
Smog (SMOG-USD) is a dragon-themed meme coin that debuted on the decentralized exchange (DEX) Jupiter in Feb. It quickly shot up by more than 3,000%, making tidy sums for investors who got in early.
However, SMOG is one of dozens of meme coins on Solana, which has become the hottest destination for meme coins. The only problem is that Smog doesn’t seem to have more to offer, nor has it proven to have staying power like, say, BONK (BONK-USD).
In crypto, mainstays such as Bitcoin (BTC-USD), Ethereum (ETH-USD), and Binance Coin (BNB-USD) always come back up even when they fall because they have actual value.
For its part, Smog came for a quick burst of attention. Currently, it’s down 86% from its all-time high in March — a dramatic decline that does not portend well for its near future. Smog is a meme you want to avoid this season.
On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the coins mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.
