The Meme Token Blacklist: 3 Cryptos to Avoid Like the Plague

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By David Brooks

Source: Roman Samborskyi/

The crypto market is seeing signs of life everywhere. Bitcoin (BTC USD) is once again trading above $70,000, and everything from Web3 to DeFi to meme token projects is booming. That has raised some eyebrows, but it has also resulted in nice profitability for traders and speculators who bet on such assets.

The crucial question, of course, is whether this dynamic can continue. I don’t fully understand crypto trading as it is very difficult to value these assets on a fundamental basis. However, it is also true that many investors make a lot of money, so it is important to address these steps.

I will focus on three meme token projects that I think are not worth owning at the moment. These three projects have significantly surpassed their 2022 lows and could certainly have more room to run. But it’s the downside risk that concerns me most about these projects.

Pepe Coin (PEPE-USD)

Volatile, insecure Bitcoin cryptocurrency with up and down arrows. 3D rendering. Cryptocurrency crash and soar.

Source: Ink Drop /

Frog motif token Pepe Coin (PEPE-USD) enjoyed great popularity due to rapid price changes and increases. It hit its all-time high on May 15 and its current market cap is now $5 billion.

Pepe Coin has seen a remarkable rise over the past year, recording over 15,000% growth. A $3.50 billion jump in trading volume in a single day highlighted the speculative enthusiasm among retail investors. However, Pepe Coin’s reliance on fleeting trends highlights the risks associated with meme tokens during market downturns.

Despite initial hype and increases in value, Pepe Coin has suffered setbacks, including allegations of insider trading and security violations. An incident involving stolen funds and competition from new meme coins further compounded the challenge.

Shiba Inu (SHIB-USD)

Illustration of a Shiba Inu dog wearing a side hat against a pink background symbolizing meme stocks, meme tokens and pupcoins


With an increase of 186% Shiba Inu (SHIB USD) currently ranks 12th in the list of major cryptos. However, unlike Ethereum’s upcoming “Pectra” update or Bitcoin’s established use cases, SHIB lacks a clear development roadmap. The team initiated Shibdentity and improved Web 3.0 user discovery to address this issue. Working with Zama, they are developing a privacy-focused network to strengthen Shibarium and provide additional security to SHIB token holders.

Despite efforts to wipe out and reduce the tokens in circulation, SHIB struggled with inflation due to its massive initial supply. Price volatility peaked in 2021-2022, but SHIB has failed to reach those highs again in the current downturn, falling to $0.000021 from $0.000035 in March. Declining whale activity added to concerns.

Dogecoin (DOGE-USD)

Dogecoin (DOGE) Shiba meme coins

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After a steady climb, Dogecoin (DOGE-USD) encountered resistance around $0.160. It peaked at $0.1594 before initiating a downward correction similar to Bitcoin and Ethereum. It fell below $0.1540, bottomed at $0.1488 and is now consolidating. DOGE remains above $0.150 supported by a bullish trendline.

Originally launched as a gaming alternative to Bitcoin in 2013, it now ranks 8th among top cryptocurrencies by market value and has a cap of $20 billion. Despite strong community support, Dogecoin’s utility has yet to keep up with competitors who raise concerns about its sustainability.

While using Dogecoin for stable transactions could improve its profitability, its long-term prospects remain uncertain. Unlike supply-focused cryptos, the recent decline in Dogecoin’s OI-weighted funding rate due to whale-induced liquidations highlights investor concerns.

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’s publication policies.

Chris MacDonald’s love of investing led him to pursue an MBA in finance and to take on a number of leadership roles in corporate finance and venture capital over the past 15 years. His past experience as a financial analyst, coupled with his eagerness to find undervalued growth opportunities, contribute to his conservative, long-term investment perspective.

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