Original source: ardizor X account
Author: ardizor, Cryptography Researcher
Compiled by: Felix, PANews
Before buying any token, a wise investor should at least analyze the following key factors:
Market capitalization (MC)
FDV
Future unlocking
Token Demand
Narrative
This type of analysis will help determine if the coin is worth holding and if it has upside potential. But 98% of altcoins are doomed to fail because they simply don’t have any potential. For example, if you invested $10,000 in AXS in November 2021, you would only have $382.5 today.
Furthermore, as can be seen from the chart below, only TON, SOL, Memes, and BTC showed significant growth within 90 days. All other so-called “tech” altcoins fell.
If you don’t want to see your money disappear over time, here are three types of altcoins you should avoid holding.
Outdated and overrated items
Such projects usually have no technology because they are all fictitious. Over time, their value will gradually decrease compared to ETH, as we can see now.
Items related to past narratives
Typical features are high FDV, low market cap and constant selling pressure. These tokens have lost narrative relevance and are gradually declining.
Overpriced tokens
The supply of these tokens is tightly controlled by the team or venture capitalists, leading to manipulated valuations.
Based on the above three types, crypto researcher ardizor has listed 8 tokens that are destined to "fail".
PANews Note: This article is intended to provide market information and does not constitute investment advice, DYOR.
XMR
You may all be aware of the anonymity and transaction privacy of Monero.
XMR is one of the oldest crypto tokens. However, the price of XMR has not changed much since 2022, and it may be banned in the future like Tornado Cash.
Most importantly, Binance delisted it this year, which may be the "last straw that broke the camel's back."
The short-term outlook is bleak and the risk is high.
FLOW
Flow is a proof-of-stake blockchain designed to be the foundation of Web3 and the open metaverse, supporting consumer-scale decentralized applications, NFTs, DeFi, DAOs, PFP projects, and more.
Unfortunately, market interest in the project has waned, causing its value to drop.
This is due to continued selling pressure from venture capitalists and a decrease in hype surrounding NFTs.
XRP
XRP is designed for fast and low-cost global transactions. However, it is an unnecessary fork of BTC and is overvalued.
XRP has a fanatical following, but its developer Charles Hoskinson is also very weird, and the author thinks he is "schizophrenic."
AXS
This list applies not only to Axie Infinity, but also to other veteran P2E tokens like SAND and MANA.
The excitement has died down and the FDV is quite high.
The hype surrounding these coins has died down and there is no hope for price recovery.
DYDX
The key challenge of DYDX lies in token unlocking.
These unlocking mechanisms were designed to stabilize selling pressure, but instead caused prices to continue to fall.
Many projects face this problem, so reviewing the unlocking schedule is crucial if the project wants to survive.
WLD
WLD is essentially a fictitious token whose supply is tightly managed by major players and insiders who are always selling tokens. The odds are not in the retail investor’s favor.
BCH
Bitcoin Cash (BCH) is a fork of BTC that aims to increase the block size and process more transactions simultaneously.
However, BCH is essentially similar to Bitcoin with no major changes. Basically, it's just a fake Bitcoin. Why is a fake Bitcoin needed? It's worth seeing a really smart person backing it. XRP isn't the worst coin, but ETH or BTC are better.
THERE IS
ADA is similar to XRP but without any of the litigation issues.
ADA has a crazy community that will hold on to their tokens even if the price drops to $0.0000001.
