# Altcoins to Avoid: Key Characteristics and Examples
## Three Main Types of Altcoins to Avoid:
### 1. Old and Overvalued Projects
- **Characteristics:**
- No technological innovation or upside potential.
- Likely to decline in value compared to $ETH over time.
- **Example:**
- **Ripple (XRP)**
- Designed for fast, cheap international money transfers.
- An unnecessary fork of $BTC with an overly inflated valuation.
- $ETH or $BTC are better alternatives.
### 2. Artificial Tokens
- **Characteristics:**
- Supply is entirely controlled by the team or venture capitalists (VCs).
- Market value is manipulated.
- **Risks:**
- The price does not reflect the true market value.
- High risk of a significant price dump (-99%) at any moment.
- **Example:**
- **Worldcoin (WLD)**
- An artificial coin with a completely controlled supply.
- Highly manipulable value, likely to be dumped eventually.
### 3. Projects from Past Trends or with High FDV and Low MC
- **Characteristics:**
- Originated from outdated trends (e.g., dead P2E games).
- High Fully Diluted Valuation (FDV) and low Market Cap (MC).
- Subject to constant sell pressure.
- **Risks:**
- Likely to experience a slow decline.
- Investing in these tokens often means becoming exit liquidity for VCs.
- **Examples:**
- **Worldcoin (WLD)**
- Completely controlled supply, likely to be dumped.
- **Ripple (XRP)**
- An unnecessary fork of $BTC with an overly inflated valuation.
- **Ethereum Classic (ETC)**
- A split from $ETH in 2016.
- Largely ignored by developers, with minimal prospects.
## Recognizing Doomed Projects
- Learn to distinguish between junk and valuable projects to make informed investment decisions.
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**Disclaimer:** Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.#ETH_ETFs_Trading_Today #SOFR_Spike
