Sunday, February 25, 2024
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Exit Now! 3 Cryptos to Sell in February 2024

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Last year brought profits to many crypto enthusiasts, with Bitcoin (BTC-USD) growing by 156% and Ethereum (ETH-USD) — by 91%. Such performance inspired investors who anticipate further growth in the crypto market. After the approval of spot bitcoin ETFs, the sentiment forced thousands of people to invest in altcoins just because they are popular. To protect portfolios from significant declines, investors should take a sober look at the risks and be aware of cryptos to sell.

Cryptos To Sell: Pepe (PEPE-USD)

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Meme coins appeared at the intersection of modern culture and the crypto world, quickly grabbing the attention of thousands of users hoping to get rich in hours. These tokens rose on the meme-mania wave, bringing investors fabulous profits in the spring of 2023. Pepe (PEPE-USD) grew tenfold during its heyday, becoming a highly profitable speculative tool. With only this asset in your portfolio at the end of April and the beginning of May last year, you could turn $1,000 into $16,300. However, the days of super profits are over.

The gradual decline in interest and value has led the token to the cryptos to sell category. The community’s enthusiasm is waning as other hype projects emerge. PEPE has found itself in a difficult situation, forced to deal with many challenges. Signs of the token’s crisis appeared last summer when allegations of insider trading and theft involving former team members surfaced. The revelation of strange transactions with the project’s wallets worsened the situation, reducing confidence in Pepe.

From PEPE’s launch until the end of H1 2023, the market saw several billion dollars in trading volumes over 24 hours. In the second half of the year, this volume could exceed $400 million. In the realities of 2024, it is very rare to see cases exceeding $100 million. The coin may still provide short-term opportunities for intraday surges, but it is fulfilling the desires of investors and traders far less.

Shiba Inu (SHIB-USD)

During the 2020-2021 hype cycles, Shiba Inu (SHIB-USD) investors were excited about the possibilities of this coin. However, the rosy dreams of a one-dollar per token valuation were shattered by reality. In it, the Shiba Inu coin is struggling to cross the $0.00001 mark.

The fact that the project still has its own community can be considered a miracle, as the 8-fold drop in price in 2021-2022 weeded out a significant portion of SHIB holders. Anyone who bought at or near the peak faced significant losses. 

The inflationary nature of Shiba Inu exacerbates its problems. The high supply of Shiba Inu characterizes the high supply of 589 trillion coins in circulation. The project launched an aggressive token-burning campaign to influence the supply. However, the SHIB price chart indicates the weak effectiveness of such measures.

The lack of real utility hinders the project’s long-term success. Several companies have agreed to use SHIB for payments, but this has not led to a significant increase in its market cap. There has been no widespread adoption despite the project’s long history. As a result, Shiba Inu remains in the realm of speculation rather than investment. 

SHIB is vulnerable to market sentiment and has unpredictable volatility, placing it on the list of cryptos to sell. The speculative nature of the token suggests that the project has limited means to counteract selling pressure during periods of market turbulence.

Dogecoin (DOGE-USD)

Dogecoin (DOGE-USD) has become a mainstream cryptocurrency based on its popularity and unique branding. However, it failed to become a practical form of payment. Given that the excitement is still the main driver of the token’s value growth, investors shouldn’t expect Dogecoin adoption as a practical form of payment in February 2024. Without real use cases, this token is a risky investment proposition and can be a candidate for the list of cryptos to sell. 

Although this altcoin has been available on the market since December 2013, until 2021, the crypto community perceived it only as a joke. A combination of circumstances and Elon Musk’s participation turned Dogecoin into a sought-after crypto asset. The price jump to May 2021 levels was followed by an equally unexpected decline. And there is no guarantee that the downward trend will not continue this year. At the same time, the supply of this coin is not limited. Under such conditions, long-term sustainability is not possible, as potential inflation haunts every Dogecoin holder.

In 2021-2022, the token experienced an 8-fold decline in market capitalization. Only due to increased media attention was it able to maintain trading volumes. 2024 daily trading volumes ranged from $150 million to $1.36 billion. This was the result of overall positive market trends. However, it can be expected that with the first unfavorable shocks, the price of Dogecoin will go down faster than other crypto assets.

On the date of publication, Julia Magas did not hold (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.

Julia Magas is a writer who covers the latest trends in finance and technology. Her work is published in a number of financial media outlets such as Nasdaq, Cointelegraph, Investing, SeekingAlpha, FXEmpire, and Beincrypto. She primarily covers cryptocurrency and blockchain technology with a focus on market performance, innovations and trends.

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