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Avoiding Crypto Catastrophe: 3 Tokens That Could Crash If Digital Assets Collapse
Despite That of Bitcoin (BTC-USD) fourth halving and potential Ethereum (ETH-USD) ETF Approval, Cryptocurrency Sale Discussions Intensified. Bitcoin’s modest 15% rise after the halving presents a challenge reaching Samson Mow’s million dollar goal. Market analysts note the pressure of the halving on miners, with the cuts in rewards, prompting sell-offs and downward pressure on BTC.
May brought relief to cryptocurrency investors as the market recovered. Bitcoin remained above $57,000, reaching $70,000. Altcoins and meme coins have risen along with elevated levels of fear and greed. Amid the excitement, investors risk overlooking potential losses.
Previous bull runs show coins losing value due to market trends, design issues, or tokenomics flaws. Investors should not rely solely on the promises of overbought coins, risking everything for high profits.
Pepper (PEPE-USD)
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Pepper (PEPPER-USD), inspired by the Pepe the Frog meme, has embraced its identity as a meme coin, deriving value from its active community. The goal was to leverage the meme’s popularity to increase platform engagement. PEPE has seen a rapid increase in value, producing quick profits for speculators. However, enthusiasm has waned amid allegations of insider trading and security concerns.
Created last year, it remained a low-priced token until December, with modest trading volumes. Demand surged in late 2023, raising the price from $0.01 to $0.15, reaching $6.5 million in trades. In April, it peaked at $7.51, reaching a market capitalization of over $0.5 billion, exemplifying the growth of meme coins.
A major incident involved rogue developers who stole $15 million. Additionally, the newly added meme coins make Pepe’s long-term appeal a bit blurry, signaling a cautious stance.
Shiba Inu (SHIB-USD)
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Introduced in 2020, the dog themed coin Shiba Inu (SHIB-USD) matched Dogemoneta (DOGE-USD) in community engagement. It also outperformed its rival, rising 31,000,000% from its low. In comparison, Dogecoin is up 4,989%. However, the SHIB’s importance may be declining.
The price of Shiba Inu has seen potential drops, raising concerns about the token. However, there were lower support levels that provided some relief. The decrease in volume suggests that a falling price may be less damaging. SHIB struggled to stay above $0.00002476 while testing the lower limits, indicating a possible further decline if support levels fail. The descending triangle pattern on the chart also suggests a continuing downtrend.
In March, during a surge in meme coins, SHIB rose only 250% compared to January, while newer coins like Floki (FLOKI-USD) AND dogwifthat (WIF-USD) saw earnings of over 700% and 3,000%, respectively. Despite its past success, SHIB’s future looks bleak, making it a meme coin to avoid.
Fetch.ai (FET-USD)
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Recover.ai (FET-USD) offers industrial-level AI solutions on blockchain, collaborating with Bosch and Munich for smart city manufacturing and infrastructure. Autonomous agents use machine learning, enabling applications in recruiting, supply chain, and commerce. The FET token powers operations.
The developments of Fetch.ai continue positively. FET plans a merger with SingularityNET AND Ocean Protocol, forming an artificial superintelligence alliance. ASI launches in mid-June, enabling FET conversion. Concerns arise over Fetch.ai’s lack of profits, prompting some investors to switch. BeInCrypto expects the price of FETs to decline if the investor exodus continues.
As of the date of publication, Chris MacDonald 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 InvestorPlace.com Guidelines for publication.
Chris MacDonald’s love of investing led him to earn an MBA in Finance and take on numerous leadership roles in corporate finance and venture capital over the past 15 years. His past experience as a financial analyst, combined with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investment outlook.