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Dumber than Dogecoin: 3 Meme Tokens to Sell Before They Crash
With Bitcoin surpassing $71,000, it’s time to consider meme tokens to sell, to reduce downside risk
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With the cryptocurrency bull market heating up, it’s probably a good time to think about meme tokens to sell. Bitcoin (BTC-USD) recently crossed the $71,000 mark, and with interest rate cuts on the way, even greater gains are expected in the cryptocurrency sector. Furthermore, we are likely to see new meme tokens fueling new engagement, making it easy for investors to get swayed by the hype.
Some may even think they can spot the next one Dogemoneta (DOGE-USD) at the beginning of the price. Wherever this discussion takes place, the hype surrounding meme tokens will likely lead to decisions you will likely regret in the long term.
However, it is difficult to ignore the increase in capital flowing into speculative risk assets. However, this momentum can easily swing in either direction, making it imperative to exercise caution. Therefore, given the current macroeconomic environment, it is important to be cautious and sell these three meme tokens to protect your portfolio from potential pitfalls.
ApeCoin (APE)
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Bored Ape Yacht Club (BAYC) is the most popular NFT collection and, riding the wave of meme culture, launched the ApeCoin (BEE-USD) token. Perhaps the main catalyst behind the release was to improve its ecosystem and empower token holders with decision-making capabilities. While it has seen strong price action since inception, the slowdown in the NFT market has hindered ApeCoin’s growth trajectory.
The NFT market is facing multiple challenges, which have recently led to a sharp decline in sales volumes. In May, sales volumes it has accumulated 54% on a sequential basis at $624 million. As a result, even the most important collections such as BAYC have seen a sharp decline. BAYC prices are down more than 80% compared to theirs peak of 120 ETHcurrently trading in the $11 to $13 range.
Therefore, with enthusiasm for NFTs waning, it is difficult to bet on an unattractive bet like ApeCoin. The token’s future is heavily tied to speculative swings in the cryptocurrency market, while offering virtually nothing in terms of real-world utility.
Bon (Bonk)
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Good (BONK-USD) emerged following the FTX crash, catching the attention of Solana (SOL-USD) investors with an airdrop of 50% of its token supply in 2022. Its early ties as a “meme-layer” coin with Solana generated a lot of excitement. However, this reliance on Solana highlights his speculative nature, offering little to no upside potential going forward.
Although the brains behind Bonk have sought to expand its utility, it currently merely serves as a tool for speculative trading and increasing community interaction. Its price swings are mostly related to social media buzz rather than its fundamentals.
Furthermore, in a highly competitive space related to meme coins, it is difficult to see Bonk offering distinctive qualities for investors. There are plenty of other meme tokens that investors can pick up that are surprisingly less volatile than Bonk. Astute investors are unlikely to be swayed by the double-digit gains seen over the past two months.
DogWifHat (WIF)
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DogWifeHat (WIF-USD) has emerged as a major meme coin that has seen a surge following the wave of meme stocks. Its incredible increase from 22 cents for a whopping $4.85 between February and March highlights its speculative nature and lack of long-term value. His flagship performance is second to none, but it doesn’t take away from his low-quality investment proposition.
Meme culture and strong community involvement took Dogwifhat to new heights, but following the cooldown in the broader meme coin market, WIF fell back into the doldrums. Some experts will have felt that its decentralized governance approach and its ability to capitalize on the popularity of the Shiba Inu mascot would help sustain interest.
However, without any significant utility and with volatility in the crypto space, WIF faces a topsy-turvy future. Regulatory uncertainties and its speculative nature challenge its long-term sustainability in the rapidly evolving cryptocurrency landscape.
As of the date of publication, Muslim Farooque 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’s Publishing Guidelines
Muslim Farooque is a passionate investor and an optimist at heart. A longtime gamer and technology enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s degree in applied accounting from Oxford Brookes University.