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Cryptocurrency Warning: Avoid These 3 Failing Names
Find out why some cryptocurrencies to avoid are under intense scrutiny due to regulatory and legal pressures in 2024
Following the fourth Bitcoin (BTC-USD) on April 19, we are not seeing the explosive growth promised by many industry experts, which is why investors are now looking for cryptocurrencies to avoid rather than buy.
Experts agree that the Bitcoin halving will cause prices to rise. The slower number of new coins entering circulation after previous halvings has caused Bitcoin prices to rise significantly.
SkyBridge Capital founder Anthony Scaramucci predicts Bitcoin could catch up $200,000 within one year following the split. Ark InvestingCathie Wood is even more optimistic. She believes Bitcoin could reach $1 million and alter wealth management. The same goes for Jack DorseyCEO of Square (NYSE:m2).
Yet Bitcoin may not be alone. Although it is a store of value, Ethereum (ETH-USD) could increase in value as it boasts updates like Dencun, which introduces proto-danksharding with EIP-4844. According to Ethereum, it is a way to rollup to add cheaper data to the blocks.
No such luck when it comes to the cryptocurrencies to avoid that we will explore. The first name is embroiled in a legal battle with a major US regulator, which could affect the sector. The second is the largest exchange but has legal problems in many countries. We’ll end with a meme coin to profit from.
Ripple (XRP-USD)
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Ripple (XRPUSD) makes it easier to exchange cash and digital currencies. It targets an intended total addressable market grow by 7.3% per year between 2023 and 2032 and eventually reach $356.5 trillion, according to Allied Market Research.
However, despite its potential, a long-standing issue for investors to take into account when dealing with XRP is the case between the Securities and Exchange Commission (SEC) and Ripple Labs.
Last year saw a major development when Judge Analisa Torres ruled that Ripple did not break securities laws when it sold XRP to exchanges and allowed ordinary people to invest, but broke the law when it sold token directly to institutions. As it was a partial victory, Ripple gained 96% after the decision. Unfortunately, those victories were lost on December 20 Solana (SOL-USD) outperformed XRP become the fifth largest cryptocurrency on the cryptocurrency market.
Additionally, as part of the final decision in the SEC case, Ripple could potentially face an a $1.95 billion fine. This could result in a decline from the current price of $0.5051, which is up a modest 18% in 2024.
Stuart Alderoty, Ripple’s top legal officer, says the problem it could be resolved in 2024, making it one of the cryptocurrencies to avoid right now.
Binance (USD-BNB)
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Over 170 million people use it Binance (BNB-USD), the largest cryptocurrency exchange in the world. However, its legal problems, especially in the United States, put pressure on BNB, the cryptocurrency coin used for trading and paying fees on the exchange.
AS part of his agreement with the Department of Justice, Binance left the US market and paid off large debts to FinCEN, OFAC and foreign asset tracking agencies.
So far, so is Binance unable to re-enter the UK market due to regulatory issues. Meanwhile, an arrested Binance executive in Nigeria is now on trial after being exposed for involvement in serious crimes.
In Canada, Binance he was fined several times for violating the rules on anti-money laundering and combating the financing of terrorism. This includes a $4.4 million fine for contributing to several large acquisitions without being registered.
However, Binance is still coming up with new ideas in the coin area. Binance Wallet has recently started accepting Bitcoin Atomic ARC-20 assets, which will make it easier to close NFT deals.
However, court battles, especially in the United States, will continue to dampen BNB’s prospects.
Shiba Inu (SHIB-USD)
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Shiba Inu (SHIB-USD) concludes our discussion of cryptocurrencies to avoid, and it might seem strange considering the 166% gain this year. But this is one of the biggest meme coins around, which means it’s time to profit.
The “meme coin” is attractive above all for its community and the possibility of future earnings. It doesn’t have a strong use case or value outside of the speculative market, which it sometimes does demonstration for the strange Elon Musk tweet. For risk-averse investors, it is better to invest in Ethereum and Solana instead.
Ethereum integrated proto-dank sharding with EIP-4844 in Dencun. Less data to analyze and regular clearing of memory to free up space makes transactions more efficient. The network eventually should manage 100,000 transactions per second. Meanwhile, the Scourge phase addresses control of the Ethereum network and economic inequality. The MEV (Maximal Extractable Value) Burn in ePBS and the proposer-builder separation decentralizes the addition of transactions and reduces the influence of validators on the selection of transactions.
Solana has improved its infrastructure to streamline transactions and stabilize the network. Firedancer, a new validation client, is expected to speed up network transactions. Tests showed it could hold up From 0.6 million to 1 million transactions per second.
The SHIB did it fuels the CoinDesk 20 index to significant gains this year. However, investors may want to wait for a tweet from Elon Musk about his next Shiba Inu puppy for the next price increase, and that’s something no one can predict.
As of the date of publication, Faizan 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 writer, subject to InvestorPlace.com Guidelines for publication.
Faizan Farooque is a contributing writer for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in stock market analysis and was a former data journalist at S&P Global Market Intelligence. His passion is helping the average investor make more informed decisions about their portfolio.