With Bitcoin surging above $71,000, it is time to consider selling meme tokens to reduce your downside risk
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As the crypto bull market continues to intensify, it is probably the right time to consider selling meme tokens. Bitcoin (BTC USD) recently rose above $71,000, and with interest rate cuts on the horizon, even bigger gains are expected in the crypto space. Additionally, we are likely to see new meme tokens inspire new engagement and make it easy for investors to be swayed by the hype.
Some may also feel like they can recognize the next one Dogecoin (DOGE-USD) early in price. Wherever this discussion goes, the excitement surrounding meme tokens is likely to lead to decisions you’ll likely regret in the long run.
However, the increase in capital flowing into speculative risk assets is hard to ignore. However, this dynamic can easily swing in either direction, so caution is advised. Therefore, given the current macroeconomic backdrop, it is important to be prudent and offload these three meme tokens for sale to protect your portfolio from potential pitfalls.
ApeCoin (APE)
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The Bored Ape Yacht Club (BAYC) is the most popular NFT collection and started the wave of meme culture ApeCoin (APE-USD) Sign. The main trigger for the release may have been to improve the ecosystem and give decision-making powers to token holders. Although there were strong price movements early on, the slowdown in the NFT market has hindered ApeCoin’s growth trajectory.
The NFT market is facing numerous challenges, which has recently led to a sharp decline in sales volumes. In May, sales volumes sequentially 54% fueled to $624 million. As a result, top collections like BAYC also experienced a sharp decline. BAYC prices have fallen by over 80% Peak value of 120 ETHThe current trading price is between $11 and $13.
Therefore, as the excitement around NFTs wanes, it is difficult to bet on an unattractive bet like ApeCoin. The future of the token is heavily dependent on speculative fluctuations in the crypto market, but offers practically no real-world benefit.
Bonk (BONK)
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Bonk (BONK USD) emerged after the FTX crash and caught the attention of Solana (SOL USD) Investors with an airdrop of 50% of its token supply in 2022. Its early ties as a “meme layer” coin to Solana caused a lot of excitement. However, this reliance on Solana highlights its speculative nature and offers little to no upside potential in the future.
Although the minds behind Bonk have attempted to expand its utility, it currently only serves as a tool for speculative trading and promoting community interaction. Its price fluctuations are mostly related to social media buzz rather than its fundamentals.
Furthermore, in a highly competitive meme coin space, it is hard to imagine Bonk offering investors any special qualities. There are a ton of other meme tokens that investors can purchase that are surprisingly less volatile than Bonk. Smart investors probably won’t be impressed by the double-digit gains the company has posted in recent months.
DogWifHat (WIF)
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DogWifHat (WIF-USD) has emerged as a top meme coin, surging following the meme stock wave. It’s an incredible increase from 22 cents to a whopping $4.85 between February and March highlights its speculative nature and lack of long-term value. Its excellence is unmatched, but does not detract from the low quality investment offering.
Meme culture and strong community engagement have taken Dogwifhat to new heights, but following the slowdown in the broader meme coin market, WIF is back in the doldrums. Some experts will believe that its decentralized governance approach and ability to capitalize on the popularity of the Shiba Inu mascot would help maintain interest.
However, WIF faces a turbulent future due to the lack of significant utility and volatility in the crypto space. Regulatory uncertainties and its speculative nature threaten its long-term sustainability in the rapidly evolving crypto landscape.
At the time of publication, Muslim Farooque 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