Altcoins
Hurry! 3 Altcoins to Sell While You Still Have the Chance.
AS Bitcoin (BTC-USD exchange rate) continues to struggle, it is a good time to consider selling altcoins.
Bitcoin, the champion of cryptocurrencies, has fallen below the $58,000 mark on the back of Mt. Gox creditor prepayments and German government BTC settlements. Additionally, we have also seen a significant decline in ETF inflows over the past two months. These headwinds have had a material impact on BTC prices, with BTC down over 15% for the month.
While the broader fundamentals of the sector remain compelling, the current environment highlights the need for strategic adjustment. Additionally, multiple interest rate cuts later this year could get the ball rolling again. However, investors will be best served in that scenario by aligning their crypto portfolio with the best of the sector.
Additionally, investors should consider dumping volatile altcoins that are likely to continue their downward spiral. That said, here are three altcoins to sell that are more vulnerable than others and will continue to erode investor value amid market volatility.
Ripple (XRP)
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Ripple (XRP-USD) was once an emerging crypto startup, but now finds itself at a crossroads as it navigates a challenging environment. The platform has made a name for itself with its transformative decentralized financial payment network, becoming a premier cross-border payment solutions provider. It boasts incredible transaction speeds, capable of processing transactions within four seconds.
However, despite targeting a huge addressable market, Ripple’s performance has been unstable. It has struggled to secure a stable position while its peers continue to post healthy gains.
Furthermore, the ongoing legal battle with the Securities and Exchange Commission (SEC) further complicates the situation. Judge Analisa Torres’s nuanced verdict has been a mixed bag for Ripple and its investors. Although cleared of violating securities laws in retail transactions, it was struck down for direct sales to institutions. It also faces an imminent threatens $1.95 billion finedestined to further weigh its assessment.
Shiba Inu Dog (SHIB)
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Shiba Inu Dog (SHIB-USD) is among the most popular meme coins and has garnered a sizable online following. However, despite its popularity, it remains a highly speculative bet, more likely to burn through investors’ value than not.
As a result, the platform has struggled with massive outflows, indicating major liquidity concerns. Additionally, with broader market shifts and regulatory hurdles weighing down its valuation, SHIB investors will continue to be as volatile as ever. So, for investors with a long-term investment horizon, SHIB is a clear sell, especially compared to the more established giants in the space.
More recently, the SHIB community has been enthusiastic about an impressive 4000% increase in its burn rate. However, the market response has been quite the opposite, with SHIB losing more than 30% in value in the last month alone. Thus, it is difficult to gauge where SHIB will end up, making it best to avoid a highly volatile meme token.
Axie Infinite (AXS)
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Axie Infinite (AXS-USD) was once considered a giant in blockchain gaming. Its multifaceted metaverse allowed players to interact with over 500 NFT-based creatures. However, despite benefiting from its claim to be a metaverse pioneer early on, Axie Infinity has struggled since. Blockchain-based gaming is in declineand according to data from Big Blockchain Gaming, 31% of blockchain games were shut down or canceled last year. Additionally, in the first quarter (Q1) of this year, the blockchain gaming sector recorded 68 investment deals, representing a worrying 57% decline from the peak of activity in Q1 2022.
As a result, we’ve seen Axie lose a lot of value, down a discouraging 41% year-to-date (YTD). However, it hasn’t been a great investment for a while, considering that it has lost 50% of its value over the past three years. Perhaps part of this can be attributed to a $615 million cyber theft in March 2022, which affected the integrity of the ecosystem. Thus, these challenges have left Axie struggling to regain its former glory, casting a shadow over its future.
As of the date of publication, Muslim Farooque did not have (either directly or indirectly) any position in the securities mentioned in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any position in the securities mentioned in this article.
Muslim Farooque is a thoughtful investor and an optimist at heart. A lifelong gamer and technology enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a Bachelor of Applied Accounting from Oxford Brookes University.