According to Investorplace analysts, it’s time to move away from altcoin projects that attract investors largely through social media campaigns. In a new article titled “3 ultra-risky cryptos you should definitely avoid,” researchers include giants like Dogecoin and Shiba Inu.
‘3 altcoins you should avoid at all costs’, according to analysts
The meme coin/token-framed bull run of the altcoin market has made many people rich quickly since 2021. Lately this hype has been waning. The Pepe (PEPE) boom, which last started in April, has also started to cool this month. Analysts argue that these cryptocurrencies, which lack real use cases, carry huge risks…
Dogecoin (DOGE)
Dogecoin has exhibited unmatched volatility over the years thanks to the support of phenomena like Elon Musk and Mark Cuban. Even, cryptocoin.com As we have reported, it even appeared on Twitter’s logo at one point. Such developments since 2021 have made Dogecoin the center of attention. Even today, investors eagerly await the next news.
The altcoin bull run by Dogecoin, especially in 2021, was shaped around its high return. The biggest criticism about it, on the other hand, is that it doesn’t have a real use case. Therefore, DOGE is only seen as a short-term earning opportunity. Investorplace analysts top Dogecoin’s list of “ultra-risky crypto”, citing its unpredictable nature.
Shiba Inu (SHIB)
The Shiba Inu lacks a convincing essence. It temporarily gained popularity during the pandemic-induced extremism. But as market conditions changed and interest rates rose, its performance stabilized.
It has probably lost all of its strength at the moment as it experienced an astronomical rally of over 121,000,000% between January and October. Despite the remarkable increase, SHIB remains in the background for a second bull run this year. It also experienced a significant pullback of over 90% from the ATH level of $0.00008841. According to analysts, 2023 is likely to follow a similar pattern.
The biggest challenge for the Shiba Inu is its lack of competitive advantage or uniqueness. As an Ethereum-based ERC-20, it essentially functions as a payment coin without any obvious features or differentiation.
Floki Inu (FLOKI)
Following in the footsteps of Dogecoin and Shiba Inu, Floki Inu joins the meme coin world as one of the newest. The Floki Inu, whose symbol is a Shiba Inu dog, quickly garnered a lot of attention for its unique combination of udder appeal, usefulness, and philanthropic initiatives.
In May, FLOKI experienced a significant increase in market capitalization, gaining over 40%. This positive sentiment has also had a ripple effect on most cryptos, including the well-established Bitcoin. Confidence in FLOKI reflected broader confidence in the crypto market.
FLOKI runs on Ethereum and Binance Smart Chain. Bridging two chains is effortless thanks to its compliance with ERC-20 and BEP-20 standards. In particular, the value of FLOKI is vulnerable to the influence of high-profile individuals like Elon Musk. Elon Musk’s tweets trigger rapid price swings. This makes FLOKI one of the most volatile cryptocurrencies with a 13% currency volatility index. But unlike SHIB and Dogecoin, it requires additional technical solutions for long-term price stability.
