Steer Clear of These 3 Risky Cryptos!
October has kicked off with a relatively positive outlook in the world of cryptocurrencies. Bitcoin and other major digital assets saw modest gains last week. However, it’s crucial to remember that fortunes in the crypto market can change rapidly, even during a bullish phase.
While the recent crypto rally has generated excitement and rumors of a new uptrend, caution remains advisable. There are economic concerns, and the underperformance of alternative cryptocurrencies (altcoins) serves as a warning sign for investors.
Navigating the cryptocurrency landscape to identify promising investments can be challenging. The market is flooded with dubious projects and cryptocurrencies of questionable value and credibility. Therefore, investors must exercise discretion when deciding where to allocate their capital, especially in a significant month like October.
3 Risky Cryptos That Raise Red Flags for Potential Investors
1. Shiba Inu
Often touted as the “dogecoin killer,” Shiba Inu gained initial popularity as a meme coin, driving its market capitalization above $4 billion.
However, the project has failed to fulfill its early promise. Shiba Inu’s metaverse project and token holder count have lost momentum, with over 77% of SHIB addresses now in the red.
The token’s value has dropped by 30% year over year (YOY), and indications suggest it may continue to decline in October. With a static token holder count and waning interest, it’s wise to consider exiting Shiba Inu due to its volatility and lack of utility.
Worldcoin, co-founded by Sam Altman, gained attention as the first AI crypto project that verifies “personhood” through eye scans.
However, the cryptocurrency backing the project, $WLD, has faced challenges. Over 98.52% of WLD investors have reported losses, indicating limited genuine interest in the token.
Concerns surround Worldcoin’s approach to biometrics, its unavailability in the US, and the lack of transparency regarding $WLD’s token distribution. Investors should steer clear of trading this token in October.
Launched in April as a memecoin, Pepe experienced a meteoric rise in May. However, as is often the case with meme-based tokens lacking utility, its value has significantly declined since then.
Pepe’s popularity strategy, driven by hype, is no longer effective. Current Pepe holders hope for spikes to regain profitability, but for new investors, avoiding trading this token in October seems reasonable.
While the crypto market can be enticing, investors need to exercise caution and conduct thorough research before committing their capital, particularly when dealing with highly speculative and 3 risky cryptos like Shiba Inu, Worldcoin, and Pepe.
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