3 Cryptos to Sell Now as the Market Faces Headwinds
In the fast-paced world of digital assets, understanding which cryptos to sell remains imperative as Bitcoin (BTC-USD) blows past the $50,000 mark again. Driven by the launch of new exchange-traded funds (ETFs) and the excitement surrounding Bitcoin’s ‘halving,’ this increase demonstrates a remarkable 200% recovery from previous lows. It indicates strong investor confidence.
However, this bullish momentum is tempered by the inherent volatility of the market and the mixed results experienced by investors. It underscores the need for a careful approach. With the halving event anticipated to create scarcity and drive prices higher, as well as recent endorsements from the Securities & Exchange Commission (SEC) attracting additional capital, the sector’s long-term growth prospects appear promising. Nevertheless, savvy investors are considering selling certain cryptos to fine-tune their portfolios. Moreover, this cautious realignment allows for investment in potential disruptors in the blockchain industry. The strategy combines prudence with a commitment to innovation while maintaining a neutral stance toward the market’s ups and downs.
Binance Coin (BNB)
Investing in coins and tokens associated with crypto exchanges has been a promising avenue in the market. However, not all exchanges boast the same level of credibility, as seen with Binance and its Binance Coin (BNB-USD). During heightened trading activity and a bullish crypto market in 2021, BNB experienced a meteoric rise from $40 to over $600.
Since then, BNB has become a cryptocurrency to consider selling, shedding about half of its value due to mounting concerns. Last November, Binance settled with the SEC for a $4.3 billion fine after pleading guilty to violating U.S. anti-money laundering laws. As part of the settlement, former Binance head Changpeng Zhao paid $50 million and resigned. He faces 18 months in prison.
Furthermore, the SEC extended its scrutiny, accusing Binance of inflating trading volumes, diverting customer funds, and misleading customers about platform oversight. Beyond the fines, these lawsuits threaten Binance’s brand significantly, likely deterring potential customers and impacting the exchange’s overall credibility.
Dogecoin (DOGE)
Dogecoin (DOGE-USD) has seen its popularity surge due to high-profile endorsements from figures such as Elon Musk and its use in online tipping. Despite this attention, DOGE struggles to carve out a competitive advantage, currently rendering it a less appealing investment option. A 12% decline in its price year-to-date mirrors fading investor confidence. That is exacerbated by its unlimited supply, potentially leading to inflation and challenging the crypto market’s scarcity value.
Moreover, a noticeable drop in Dogecoin’s transaction volume and whale transaction count signals dwindling interest in the meme coin. Such trends underscore concerns that Dogecoin’s value is more speculation-driven than rooted in tangible utility.
Furthermore, Dodgecoin was previously ranked among the top ten cryptocurrencies by market capitalization, but its position has since slipped. It is no longer a top 10 coin. Its reliance on celebrity backing and lack of solid fundamentals raise doubts over its long-term viability. With its foundation shaken, Dogecoin faces an uphill battle in maintaining relevance and sustaining investor interest.
Shiba Inu (SHIB)
Despite its initial popularity, Shiba Inu (SHIB-USD), a meme token inspired by Dogecoin, has faced a substantial drop in value. Developed as a play on Dogecoin, Shiba Inu effectively garnered an impressive community during hype cycles but quickly relinquished those gains after the enthusiasm faded. Investors who entered near its peak likely experienced substantial losses, even as the Shiba Inu team worked to enhance its fundamentals.
Functioning as a highly inflationary token, Shiba Inu initiated an aggressive token-burning campaign. Last month it burned 12 million tokens. This effort aims to reduce circulating supply and bolster the token’s price. Despite these measures, Shiba Inu plummeted more than 85% from its all-time high in 2021. Its market cap now exceeds $5.5 billion, ranking it the 17th largest cryptocurrency. However, with little utility beyond its community and early-stage projects, Shiba Inu faces further challenges. Investor interest is waning and preferences are shifting toward cryptocurrencies with tangible real-world applications.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
