10 Cryptos to Avoid in 2024 – How Much Would You Have Today If You Invested $10,000 in XRP 6 Years Ago?
A lot of analysts and crypto media outlets share “best cryptos to buy now” content on a daily basis. But what about cryptos you should actually avoid? Analyst “𝗰𝘆𝗰𝗹𝗼𝗽,” who has over 500k followers on Twitter, posted a list of altcoins to steer clear of right now.
He first pointed out that if you invested $10,000 in XRP in 2018, you would have today exactly the same amount. This stark revelation sets the stage for his list of cryptocurrencies to avoid.
What you'll learn 👉
General Red Flags in Crypto Projects
Many old projects in the crypto space are simply too outdated and overvalued. These projects often lack innovative technology and offer little to no upside potential. They are destined to fall relative to $ETH in the long term, a trend that’s already visible in the market.
Another category to watch out for is “artificial” tokens. In these projects, the supply is completely controlled by the team or venture capitalists, and the value can be easily manipulated. The price of such tokens often doesn’t reflect their true market value, and there’s always a looming risk of a sudden 99% dump at any moment.
Projects that emerged from past trends, such as defunct Play-to-Earn (P2E) games, or those with high Fully Diluted Valuation (FDV), low Market Cap (MC), and constant sell pressure, should also be approached with caution. Projects from old, no-longer-relevant trends are often doomed to a slow death.
Buying tokens with strong sell pressure essentially means becoming exit liquidity for VCs.
Specific Cryptocurrencies to Avoid in 2024
Worldcoin ($WLD) is described as an artificial coin where the supply is completely controlled. The value can be manipulated at will, but it’s clear that sooner or later, it will likely face a significant dump. The odds are not in favor of investors in this case.
Ripple ($XRP), despite being designed for fast and cheap international money transfers, is essentially viewed as an unnecessary fork of $BTC with an overly inflated valuation. While not the worst coin, $ETH or $BTC are considered better options. The same sentiment applies to Cardano (ADA).
Read also: Crypto Analysts Posts Viral $6.5 XRP Price Prediction
Ethereum Classic ($ETC), a blockchain that emerged from a split with ETH in 2016, is almost identical to $ETH. The key difference is that developers largely ignore ETC, leaving it with almost no prospects for future growth or development.
Bitcoin Cash ($BCH), created as a fork of Bitcoin with the aim of increasing block size for more transactions, essentially repeats the BTC concept without significant improvements or changes.
Monero ($XMR), known for its anonymity and transaction privacy, has been stagnating in value since 2022. There’s even a possibility of a ban similar to what happened with Tornado Cash. With its high valuation, outdated technology, lack of prospects, and high risks, it’s considered a cryptocurrency to avoid.
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Show more +Axie Infinity ($AXS) and other old P2E game coins are also on the list. The trend has moved on, the hype has dissipated, and there’s a very high FDV. In such projects, the initial excitement has collapsed, leaving little to expect in terms of future growth.
The token dYdX ($DYDX) faces issues with token unlocks. These are structured in a way that creates constant selling pressure, driving the price lower and lower. This issue isn’t unique to dYdX, so it’s crucial to always check the vesting schedule of any project you’re considering.
Lastly, useless Layer 2 (L2) projects like $STRK and $ZKS are highlighted. These are seen as ineffective L2 solutions with low market caps, high FDVs, and constant sell pressure leading to price dumps. This category also includes new projects that launch with high FDVs but lack real utility and community support.
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