Investors in cryptocurrencies have had a difficult year. The latest market sell-offs have wiped off billions of dollars in value. The present market dip, however, is a chance for those who trust in the future of digital assets to separate the wheat from the chaff and analyze which cryptos to avoid.
Over the last two months, the tremendous volatility and speculative character of cryptos has been on full show. Risky assets, especially cryptos, have faced debilitating headwinds since the beginning of the year. Cryptos with diverse use-cases, on the other hand, have a solid long-term bull case.
There are a lot of cryptocurrencies out there, but only a handful of them will last. Now, let’s take a look at some cryptos to stay away from.
BitTorrent (CCC:BTT-USD), a popular peer-to-peer file-sharing network, is likely known to many of you. The majority of you, on the other hand, are probably unfamiliar of its namesake cryptocurrency, which did very well in spurts last year. Due to its limited real-world usefulness, however, BTT-USD is not an appealing option.
The fundamental point of BTT is for consumers to be able to purchase and spend the token in order to have higher download speeds. When a user spends BTT, BitTorrent will make a profit, and investors will see their investments grow in value over time.
Despite its popularity, the platform is unlikely to receive global awareness, despite the fact that it has a large user base. BTT has few applications, and its poor reputation will restrict its adoption. As a result, betting on a coin like this at this moment is difficult.
Shiba Inu (SHIB-USD)
Several winners emerged from the crypto market, but nothing compares to Shiba Inu, a meme currency that has seen incomprehensible increases (CCC:SHIB-USD). Since January 1 of last year, SHIB-USD has increased by almost 100,000,000%.
Shiba, unlike other meme tokens, has some real-world use, which might raise its worth in the future. It may be more than simply a store of wealth if smart contracts are enabled.
Furthermore, the project’s creators established ShibaSwap, a decentralized exchange where users may stake their money and receive incentives. They also announced the launch of Shiboshi, a new NFT.
Despite the fact that these advancements seem to be significant, they aren’t. Many other cryptocurrencies are more cost-effective than SHIB in providing these functionalities. As a result, SHIB doesn’t have much of a future.
Another cryptocurrency that made significant progress last year is OMG Network (CCC:OMG-USD). It’s simply an Ethereum (ETH-USD) “value transfer” network that enables individuals to move money faster over blockchain networks while maintaining security.
It also collaborates with banks to develop solutions that appeal to both current and potential banking consumers. Enya, a partner, has unveiled the Boba Network, an innovative layer two system capable of cost-effectively processing thousands of transactions per second.
Investors aren’t interested in utilizing OMG as a store of value, as we’ve seen over the last several months, despite its huge trading volumes. At the very least, it’ll be transferred in a matter of minutes. As a result, you should approach it as if it were a set of casino chips.
The Securities and Exchange Commission’s (SEC) battle with XRP (XRP-USD) is well-known. As a result, unlike its peers, XRP-USD has not reclaimed its previous highs.
Although Ripple’s lawsuit against the SEC seems to be winning, would a victory ensure mass acceptance of the cryptocurrency?
RippleNet is a top goal for RippleLabs, the creators of XRP. RippleNet is a global payments network that enables businesses to send low-cost payments to businesses in more than 40 countries.
Although it aims to grow usage, the payment platform does not need to employ XRP to do so. As a result, it’s difficult to make a case for XRP-USD as a long-term investment right now.
Civic (CCC:CVC-USD) is a prominent “blockchain-based identity management system” (Blockchain-based Identity Management Solution). It simply gives individuals and corporations the power to control and safeguard their personal data. The platform was created with the goal of reimagining ID verification procedures while also providing consumers with more privacy and control.
Companies and individuals may have Self-Sovereign Identity thanks to Solana-based identity management (SSID). As a result, the Civic Platform is useful in that it efficiently addresses the vexing Know Your Customer (KYC) nightmare that organizations and consumers face.
As it grows in popularity, it may have a lot of use in the eCommerce world. However, it has yet to acquire significant momentum, since it is currently ranked outside of the top 150 cryptocurrencies by market capitalization.
Tron (TRX-USD) is an open-source blockchain network that allows developers to create decentralized apps and perform smart contracts. It has developed a thriving ecosystem to support digital initiatives and apps since its inception.
TRON, which was founded by Justin Sun, one of the most divisive individuals in the crypto realm, aims to become a big player in the space by focusing on numerous verticals.
TRON has been at the focus of a number of disputes, despite its many applications. Mr. Sun was the subject of a scathing investigative investigation on the entertainment website The Verge a few months ago, in March.
The platform has also been accused of plagiarizing white papers from other protocols. TRON has duplicated elements of Protocol’s white papers, according to the CEO of the crypto project. As a result, Mr. Sun’s unsavory reputation and TRON’s public adoption should be a barrier.
0x (CCC:ZRX-USD) enables users to trade cryptos across many blockchains, allowing them to get the best price for each transaction.
Its development team has been successful in attracting several key participants in the crypto world, such as NFT marketplace OpenSea and crypto exchange Coinbase Global, in recent months (NASDAQ:COIN).
The protocol mainly serves as a liquidity aggregator, allowing users to compare prices across a number of decentralized exchanges. Matcha, the company’s cryptocurrency trading platform, lets you to place trades and compare pricing. The platform’s native currency is ZRX.
The platform does, however, have a number of flaws. To begin with, one of the most common methods for investors to produce revenue is via crypto staking, which is not possible with 0x.