Here Are Cryptocurrencies You Should Avoid This Month

Since the beginning of the twentieth century, there has been no better way to build wealth than the stock market. Although they won’t do better than bonds, gold, or real estate each year, they do better in the long run. In fact, no other asset class can come as close to matching the gains that equities make. But with regard to the short term, it’s a different story altogether.

Ever since the pandemic hit different countries throughout the world in March last year, the crypto market’s value has soared. Meanwhile, the S&P 500’s benchmark has barely gained a little over 100 percent since last year. Now, the overall value of the crypto market has risen from $141 billion to almost $3 trillion. That’s more than a twenty-fold increase in just 20 months.

But while interest I the latest digital currencies and crypto-assets is at an all-time high, not every cryptocurrency is worth investing in. In fact, there are three cryptocurrencies that need to be avoided.

For starters, there Shiba Inu, which has recently started gaining immense popularity as the supposed Dogecoin killer. As of yet, the memecoin has gained an increase in prices by over 11 million percent since it launched in August last year.

Up until now, everything has turned out in the young crypto’s favor. As an example, a large number of crypto exchanges have begun listing it so traders can add it to their crypto portfolios. This led to a rise in the number of crypto wallets currently holding Shiba Inu over 925,000. Nevertheless, there are numerous things wrong with it as well.

Firstly, it doesn’t offer any sort of real-world utility. Although this applies to almost 99 percent of all other cryptocurrencies, investors need to be wary of SHIB considering how it is now one of the top ten biggest cryptocurrencies by market cap. Based on Cryptwerk, an online business directory, only about 112 merchants accept Shiba Inu. Not to mention, Shiba’s median hold time is just 13 days, which shows that it’s trying to attract swing investors rather than buy-and-hold investors.

Next up, there is Floki Inu, which offers just as little use potential as Shiba Inu. This is another cryptocurrency that has recently started skyrocketing in terms of value. Like the Shiba Inu coin, it is inspired by the Shiba Inu dog breed as well.

Over the last four months, the price of FLOKI tokens has risen by over 6,500 percent. Based on recent events, Tesla CEO Elon Musk seems to be the cause. But this wouldn’t be the first time Elon Musk has shifted the crypto market with his tweets. Besides the lack of this coins usability, there’s also little information in the whitepaper, which is a cause for concern.