Before buying any token, a wise investor should analyze at least the following key factors: Market Cap (MC) FDV Future Unlocks Token Demand Narrative This type of analysis will help determine whether the token is worth holding and whether it has upside potential.
If you don’t want to see your money disappear over time, here are three types of altcoins you should avoid holding.
1. Outdated and overrated projects
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.
2. 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.
3. Inflated Token Prices
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".
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 reduced hype around NFTs.
XRP
XRP is designed for fast and low-cost global transactions. However, it is an unnecessary fork of BTC and is overvalued.
It has a really cult following, but I haven't seen a single really smart person backing it.
XRP is not the worst coin, but ETH or BTC are better.
AXS
The list here applies not only to Axie Infinity, but also to other veteran P2E tokens like SAND and MANA.
The excitement about it has died down and the FDV is quite high.
The hype surrounding these tokens 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?
THERE IS
ADA is similar to XRP but without any of the litigation issues.
ADA has a crazy community that will hold onto their tokens even if the price drops to $0.0000001.
Developer Charles Hoskinson is also very weird, he may be schizophrenic
