It doesn’t take a genius to understand why these three speculative cryptos should be avoided
The Bitcoin (BTC USD) The rally seems to be over. That’s not good news for these three speculative cryptos to avoid. Barrons 1st of May headline said it all: “Bitcoin is crashing. Here’s why and how much prices could fall.”
“Downside technical targets are now $55,700 (61.8% Fibonacci retracement of advance since October) and $51,000-$52,000 range (end-January consolidation area),” Barron’s reported comments from Alex Kuptsikevich, one Analysts at broker FxPro.
Bitcoin is often considered the gold standard when it comes to cryptocurrencies. There is no doubt that outside of BTC and ether (ETH-USD), there are many scammers in the crypto space.
Peter Brandt, the founder of Factor LLC, predicted Bitcoin’s major correction in 2018 when it lost 80% of its value. Brandt believes Bitcoin could now falling to the mid-$30,000 range. If Bitcoin has no chance, how can any of these three scammers hope to do any good for their supporters? Sell these speculative cryptos to avoid them now.
Toncoin (TON)
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It’s been a long time since I last wrote about a top 10 cryptocurrency other than Bitcoin. When I did that, as far as I know, Toncoin (TON USD) wasn’t anywhere near the top 10. But loud Coinmarketcap.comToncoin is now the ninth largest cryptocurrency with a market capitalization of 19 billion dollars. I couldn’t resist adding it to my list of speculative cryptos to avoid.
telegramFamous for its encrypted data, is one of the largest messaging platforms in the world with more than 900 million monthly users. The company recently adopted crypto technology and now accepts Toncoins as payment on its advertising platform, eliminating the euro.
“Telegram will also benefit from the program. Although Telegram has never been profitable before, it could now generate revenue by hosting tailored ads. With 700 million monthly active users and 1 trillion channel views per month, it has a large audience to draw from.” wrote Coindesk Contributor Danny Nelson in early April.
While utility is critical to increasing the value of cryptocurrencies, I cannot imagine Toncoin’s market cap being $19 billion. Avoid it until this partnership with Telegram proves to be a success.
Stack (STX)
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stack (STX-USD) is the 35th largest cryptocurrency with a market capitalization of $3.2 billion. Like most cryptos, it has risen sharply over the last year, gaining 179% in the last 52 weeks. On the other hand, it has lost 17% in the last seven days, more than six times Bitcoin’s losses.
Colorful fool Contributor RJ Fulton says he earned 300% on stacks and will probably never be sold. “Since I first invested in Stacks in May 2023, when it was worth about $0.60, it has risen to an all-time high of $3.80. With some additional investments, my stacks position is up a commendable 307% as of March 30,” Fulton wrote.
According to Fulton, Stacks has smart contract functionality, which puts it in the realm of decentralized finance. I like this idea. Additionally, the author suggests that the new Nakamoto cryptocurrency release represents a paradigm shift that could unlock more than $1 trillion in dormant Bitcoin capital. But if it sounds too good to be true, it probably is.
Dogwifhat (WIF)
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Even further down is the list of top cryptocurrencies from Coinmarketcap.com Dogwifhat (WIF-USD), which ranks 39th with a market cap of $2.9 billion.
It has clearly caught the attention of crypto investors interested in buying meme coins. In March WIF became the fourth biggest Meme coin by market capitalization. It remains behind in fourth place Pepe (PEPE-USD), Shiba Inu (SHIB USD) And Dogecoin (DOGE COIN).
Crypto news source Unchained.com had a lot to say about the meme coin in March. “The project’s founders remain anonymous, but the most popular meme coin, Dogecoin (DOGE), is said to be among the things that inspired them,” said Unchained wrote. “However, while DOGE has some use cases, dogwifhat derives its perceived value solely from speculation.”
More importantly, according to Unchained, WIF lacks an underlying utility. This should be an option for most rational investors.
On small capitalization and low volume cryptocurrencies: InvestorPlace does not regularly publish commentary on cryptocurrencies whose market capitalization is less than $100 million or whose trading volume is less than $100,000. Because these “penny cryptos” are often a playground for fraudsters and market manipulators. If we publish a comment on a low-volume crypto that may be affected by our comment, we ask InvestorPlace.com writers to disclose this fact and warn readers of the risks.
Read more: How to avoid popular cryptocurrency scams
At the time of publication, Will Ashworth did not hold (either 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.