3 Cryptos to Avoid Like the Plague in 2024 and Beyond

Bitcoin (BTC USD), ether (ETH-USD) and other solid crypto projects are worth investing in the long term. This is due to the technical innovations they offer with their underlying technology. This is also due to the ecosystem of payments and applications they support. These cryptocurrencies are increasingly seen as a store of value. A lot of capital is now flowing into spot ETFs and other products for institutional investors. However, the list of cryptos to avoid is getting longer and longer. Keep this in mind further as valuations in this sector are rising, which is having a disproportionate (positive) impact on certain meme tokens that I believe are currently becoming too expensive.

There are many meme tokens to choose from that could have made this list. While speculators continue to be largely successful with their portfolios, at least of late, there are three tokens that could face significant downsides if another crypto winter looms.

Here are three cryptos to avoid for those who are more cautious about the markets right now.

Shiba Inu (SHIB-USD)

Before the market closed on June 7, the cryptocurrency Shiba Inu (SHIB USD) recorded a decline of 8%. Due to sell-offs in the crypto market, the price was trading at $0.0000234. The decline was triggered by stronger-than-expected jobs data for May and accelerated after “Roaring Kitty” Keith Gill’s uneventful livestream.

Since late May, the dog-themed token has traded poorly, reaching a high of $0.00002940. June started on a bearish note, with SHIB recording only two positive days. From a technical analysis perspective, SHIB is approaching an important resistance level. Investors hope that support remains.

Now the Shiba Inu is well above its recent lows. There are arguments that a meme rally on the stock market could certainly influence the price of this token. If this support level holds, investors could potentially look to add to their positions. In this way, they could benefit from a high-risk environment.

However, for those who believe that further downside risks could lie ahead for the most speculative assets, Shiba Inu’s relative lack of utility and highly speculative nature makes it, in my opinion, a project worth avoiding. Do it right and make sure this is one of the cryptocurrencies you should avoid.

Pepe (PEPE-USD)

Source: Ewa Studio / Shutterstock.com

Pepe (PEPE-USD) is associated with the semi-controversial web cartoon “Pepe the Frog.” The token is a project that many have long viewed as a classic pump and dump system. The coin offers no real value to holders and relies on the hype generated by a dedicated group of followers. There is hope that they will rise during risk-on rallies. This speculative upside is what makes Pepe so attractive to so many. However, this also makes the token one of the riskiest on the market.

Since March, short liquidations have increased, resulting in significant upside potential for Pepe. But with the token now below its May peak and liquidation and short-covering catalysts likely out of the way, it is unclear whether enough capital will be available to take this token to the next level.

Basically, Pepe is similar to the other tokens on this list from a utility perspective. In my opinion, projects that provide real benefits to users are the ones most likely to be sustainable and successful in the long term. Accordingly, I would recommend investors to consider other large-cap projects instead and for this reason consider this top 25 cryptocurrency as one of the riskiest buys in this current environment.

Floki (FLOKI-USD)

Source: Zie Project/ShutterStock.com

Another top meme coin, Floki (FLOKI-USD) has provided investors with significant returns thanks to its loyal fan base. Although it is a niche project named after Elon Musk’s dog, Floki has one Market cap of $2.6 billion, which many have attributed to its blockchain presence and apparent usefulness in the metaverse and DeFi. However, its valuation, based on the greater fool theory, is tenuous, making this token extremely risky for new investors.

In March, FLOKI rose to $0.0002964, its highest level in two years, but the rise was short-lived as the token’s price fell until April. As market conditions improved, FLOKI reached a high of $0.0003085 before falling again due to a stock market collapse. Despite the positive market sentiment, Floki has experienced sharp and sudden declines in the past, making it one of the more volatile meme tokens in the crypto sector (and that’s saying something).

For those who believe that the next long-term crypto bull market will be driven by fundamentals rather than hype, this is another meme cryptocurrency to avoid right now.

At the time of publication, Chris MacDonald did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.