Thursday, April 25, 2024
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3 Cryptos to Sell in December

We’re nearing the end of 2022 and about to usher in a bright new year. For most investors in the crypto sector, that’s a good thing. The valuations of cryptos have been pummeled nearly across the board, with most owners of the coins looking for cryptos to sell right now.

Last year was a completely different story. Investors could have tripped over a token and made money. The market was surging, with the price appreciation of everything from meme tokens to certain stablecoin projects (especially Terra) absolutely skyrocketing.

With the valuations of cryptos coming back down to Earth, the quality and security of coins have become far more important metrics. Investors now care who is behind projects and what tokens actually do.

With that in mind, let’s get to this list of cryptos to sell in December.

Shiba Inu (SHIB-USD)

Among the meme tokens that I think continues to be atop of the list of cryptos to sell right now is Shiba Inu (SHIB-USD).

The coin has declined roughly 90% from its peak, but it can fall much further. When one considers that this token soared by multi-million-percentage points increases in a one year period, it’s obvious that its value can sink tremendously.

This  project provides little utility outside of its community and early-stage projects. Sure, the price of any asset can rise if enough people are buying it. However, when buying activity dries up because folks need to prioritize paying their rent over speculating on cryptos, coins’ prices can spiral downward quickly.

Interestingly, despite its relative lack of utility, Shiba Inu still trades at a market capitalization of more than $5 billion. That’s puzzling for many outside the crypto world. But these valuations, at the end of the day, are just numbers. That said, in the stock market, cash flows and assets underpin the valuations of $5 billion companies. Shiba Inu, however, does not have those attributes.

Of course, SHIB could go on another incredible run if  free money is injected into the economy as it was following the pandemic. That said, until we get to that point, this token should be on investors’ sell lists.

ApeCoin (APE-USD)

Next on this list of cryptos to sell is a prominent NFT-related crypto, ApeCoin (APE-USD). Founded with the help of the Bored Ape Yacht Club (BAYC) team, which is behind popular NFT compilations such as the Bored Apes, ApeCoin shot to glory earlier this year. That’s because the token surged from an initial token offering price of $1 apiece to nearly $40. Today its price is close to the $4 level.

Thus, like many speculative tokens that may be used for various purposes in the future, ApeCoin’s valuation pummeled. This is a token that’s now more than 90% off its peak and trading at levels that some speculators may find attractive.

But the question is whether there’s anything about this project to get excited about.

The project’s staking launch has sparked some interest, as investors are now able to stake their funds in four pools – the BAYC pool, ApeCoin pool, MAYC pool, and the Paired pool. Consequently,  the owners of Apecoin will be able to earn passive income from it. However, the crypto also has its share of risks. Investors will reportedly be able to collect their staking rewards beginning on Dec. 12.

That said, this token has little utility outside of staking. While some have suggested that APE may be the primary currency used in various, future metaverse projects, it’s unclear just how the economics of this project will work. Thus, as with other meme tokens, those who buy ApeCoin  are speculating about a brand and a team, while the coin carries significant risk.

The Sandbox (SAND-USD)

Last on this list of cryptos to sell is a notable blockchain-based metaverse project, The Sandbox (SAND-USD). Interestingly,  I’ve been hot and cold on The Sandbox in the past, for good reason.

It has impressive growth potential, tied to its prevalence in the fast-growing metaverse space. Of course, many competitors have entered the metaverse, and The Sandbox is one of a number of blockchain-based metaverse projects in this space.

The Sandbox’s valuation is tied to the amount of activity on its blockchain and within its metaverse. In 2022, real utilization of the crypto has declined substantially, suggesting that this year’s performance hasn’t lived up to last year’s hype. Accordingly, while a small group of fans still interact on The Sandbox, it is getting less and less busy.

For those banking on SAND tokens appreciating in value as a result of surging interest in it, the decline of its activity is a problem. Accordingly, it has been hit hard, along with the broader sector of late.

Perhaps the metaverse’s growth will accelerate over the long term, boosting SAND’s value. But for now, this token remains on my sell list until its  value can be validated.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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