As a form of value exchange, many cryptocurrencies and blockchain-based digital assets provide value. Smart contracts paved the way for a whole range of decentralized applications, which provide value to millions of users each and every day. While investors may easily support certain conceptual growth features of blockchain technology and the cryptocurrencies that arose out of this space, it’s clear that not all crypto projects provide end users with the kind of utility many expect.
Some crypto projects are essentially all hype, with little substance. Meme tokens, or cryptos that align with popular internet memes or movements, tend to fall into this category. In this article, I’m going to highlight three such projects I think fit into the “don’t buy now” bucket.
If the crypto market sees another 2022-like move, these three tokens could crash. For those looking to take a defensive stance heading into a period of uncertainty, these are three cryptos to sell right now.
Pepe (PEPE-USD) follows the meme coin trend, known for memes but lacking real-world use. Unlike other crypto projects that provide some value outside of speculation, there’s really no other reason to own Pepe, as far as I can tell.
Now, any investment involves some level of speculation. Investors speculate that a given company will increase its earnings over time, or more users will adopt a given platform. For Pepe, it’s a popularity game. And while this project saw a massive initial surge upon its creation, it’s also clear that Pepe has been on a steep downtrend since its May peak.
Pepe dipped below the moving average but now shows signs of resuming its bullish trend after briefly pausing at $0.0000013500 resistance. To continue upward, it needs to overcome $0.0000020000 resistance.
PEPE is currently trading within moving average boundaries, indicating a brief period of consolidation before potential trending. However, if bears breach the 21-day SMA, selling pressure may intensify.
Shiba Inu (SHIB)
Before investing in Shiba Inu (SHIB-USD), investors should consider its purposelessness. It’s essentially a joke within a joke, and one that’s reliant on Elon Musk’s dog tweets for price movement. Moreover, Shiba Inu’s future looks grim due to delays and doubts about the Shibarium update. It’s lost value and remains highly volatile.
Shiba Inu’s main drawback is its sluggish tech development. The team hasn’t provided updates or a roadmap since its launch, lagging behind other meme coins.
SHIB lacks utility and is a poor investment, down over 40% in six months. It’s highly volatile and trades at fractions of a cent. My suggestion? Avoid it.
Dogecoin (DOGE-USD) is a polarizing meme coin with a strong following and a significant internet culture influence.
Dogecoin’s limitations, absence of smart contracts, and limited integration lead to sell recommendations. Its value, now around 6 cents, has dropped significantly from its 2021 peak of 74 cents. Persistent volatility prompts advice to avoid or sell DOGE. Overall, it’s an overvalued crypto for 2024, relying on sentiment and news, making long-term value uncertain.
DOGE has seen some strong recent trading periods, but remains more than 90% below its peak. In my view, Dogecoin is one of the crypto tokens that’s down 90%, and could see another 90% drop from here. Indeed, its previous incredible rallies to the upside, in which the token continued to double seemingly every few days, could work in reverse.
This is a crypto project that may not be as speculative as the first two on this list, but it could be more sensitive to popularity shocks than the other two. One tweet from Elon Musk that he’s moved on from Dogecoin, and it’s lights out. That’s some existential risk I don’t think investors want to take right now.
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.