Consider dumping these lackluster meme coins to sell when market inflows slow down
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As the crypto market takes a breather, it might be the right time to think about which meme coins to sell.
In a rising tide scenario that lifts all boats, Bitcoins (BTC USD) The robust rally in the first three months of this year boosted meme coins. Meme coins are essentially built on the pillars of social media buzz, lacking real-world utility and technological support.
Furthermore, as the enthusiasm waned, there was a significant slowdown in crypto market inflows new spot Bitcoin ETFs and overall weak asset prices. Such a trend is likely to put significant pressure on meme coins, enticing investors to dump these highly speculative assets. With that in mind, here are three that you should probably eliminate from your portfolio.
Meme Coins to Sell: Bonk (BONK-USD)
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Bonk (BONK USD) was among the few cryptos that raised hopes of a crypto bull run during the catastrophic market downturn in 2022. Bonk briefly went parabolic during this time, rising to six cents after previously trading for about a tenth of a cent seven times. It is now changing hands at about one ten-thousandth of its maximum price of six cents, 100% below the maximum prices reached in 2022. Its rise underscores the crypto market’s vulnerability to quick bursts of speculative frenzy through meme tokens that offer little real-world benefit. World benefit.
Bonk hardly offers any use cases and the few times it did see a price increase had little to do with its project. In 2020, for example, it bounced back, but that was largely due to viral TikTok videos that temporarily boosted the price. Additionally, its speculative nature and unlimited supply model cast a long shadow over its long-term viability, making it a digital company to avoid.
Pepecoin (PEPE-USD)
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Pepecoin (PEPE-USD), with the image of a cartoon frog, was one of the best-performing cryptos last year. Year-on-year PEPE growth is over 15,000%, a stunning figure by any standards. In fact, the coin’s trading volume increased by a staggering $3.50 billion in one day, largely due to the hunt for speculative assets by individual investors. The PEPE speculation frenzy sheds light on the dangers of investing in meme tokens, which offer virtually no long-term stability. Like its competitors, Pepecoin relies more on viral trends than substantial value, making it an asset class during a downturn.
Most recently, a massive transfer of 2.6 trillion PEPE to an unknown wallet took place on March 27th worth over $21 million caused a stir among crypto investors. This action followed a sharp price drop, which was linked to the intervention of key stakeholders to control the price of the coin. This volatility once again highlights the precarious nature of PEPE, which remains vulnerable to the slightest shifts in online trends and investor narratives.
Shiba Inu (SHIB-USD)
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Shiba Inu (SHIB USD), often touted as the playful cousin of Dogecoin (DOGE-USD), is another popular meme coin that you should avoid. Despite its lack of intrinsic value and minimal utility, Shiba has gained a strong following online. Additionally, the price has increased significantly over the years during the peak of hype cycles. However, it failed to sustain these gains due to the turbulent nature of crypto betting.
Furthermore, the success of the SHIB is not based on its technology or utility, but on the support of celebrities, especially Elon Musk. Musk’s Twitter feed has been a push for meme coins like DOGE and SHIB, which he promotes as populist investments. Arguably the last big moment for SHIB occurred when Musk briefly X’s logo has been changed to show the Shiba Inu picture.
However, the reality for their enthusiasts is that these cryptos offer little to no tangible benefits compared to the market leaders. Without addressing these fundamental issues, Shiba Inu will continue to remain a speculative asset, especially as more sustainable cryptos become more prominent in the industry.
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