Advertisement
Singapore markets open in 6 hours 18 minutes
  • Straits Times Index

    3,272.72
    +47.55 (+1.47%)
     
  • S&P 500

    5,074.36
    +63.76 (+1.27%)
     
  • Dow

    38,515.86
    +275.88 (+0.72%)
     
  • Nasdaq

    15,722.02
    +270.71 (+1.75%)
     
  • Bitcoin USD

    66,711.42
    +277.63 (+0.42%)
     
  • CMC Crypto 200

    1,437.43
    +22.67 (+1.60%)
     
  • FTSE 100

    8,044.81
    +20.94 (+0.26%)
     
  • Gold

    2,340.10
    -6.30 (-0.27%)
     
  • Crude Oil

    83.30
    +1.40 (+1.71%)
     
  • 10-Yr Bond

    4.5940
    -0.0290 (-0.63%)
     
  • Nikkei

    37,552.16
    +113.55 (+0.30%)
     
  • Hang Seng

    16,828.93
    +317.24 (+1.92%)
     
  • FTSE Bursa Malaysia

    1,561.64
    +2.05 (+0.13%)
     
  • Jakarta Composite Index

    7,110.81
    +36.99 (+0.52%)
     
  • PSE Index

    6,506.80
    +62.72 (+0.97%)
     

Meme Token Meltdown: 3 Cryptos to Kick to the Curb in 2024

This year’s cryptocurrency rally remains in the balance. Various factors have driven positive sentiment in this sector, including the SEC’s recent approval of spot Bitcoin (BTC-USD) ETFs and an upcoming halving event in April for the world’s largest cryptocurrency. But for small-cap meme tokens, there are plenty of cryptos to sell for investors looking to upgrade their portfolios in terms of quality.

Indeed, the volatile price moves made by various meme tokens can entice speculators and traders. But investing and speculation are two different things, and I’ve long believed that meme tokens don’t fit the bill for most long-term investors.

I’d classify three meme tokens as cryptos to sell in this current environment.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Shiba Inu (SHIB-USD)

Dogecoin (DOGE) shiba meme coins
Dogecoin (DOGE) shiba meme coins

Source: siberian_horse / Shutterstock.com

ADVERTISEMENT

First on this list of cryptos to sell is the highly popular Shiba Inu (SHIB-USD). Although Shiba Inu has seen some incredible spikes since 2020, the token only survives due to the hype around it. While bulls aim for the token to reach $0.01 in 2024, Shiba Inu will have a hard and rocky time achieving new highs, given these uncertain trends.

Advocates and fans of the Layer-2 scaling solution, Shibarium, expect the token’s acceptance by minimizing its transaction fees. However, its competitive advantage among numerous digital assets remains unclear, suggesting alternatives like Cardano or Solana.

For Shiba Inu to see the kind of exponential growth speculators are looking for, some big catalysts will need to materialize for this still-nascent token. I don’t see these catalysts as likely to happen. With 589 trillion tokens in circulation, a surge in valuation seems unlikely, particularly if new tokens continue to be minted, outpacing any sort of burning programs moving forward.

Dogecoin (DOGE-USD)

Illustration of Shiba Inu dog wearing sideways cap in front of pinkish red background, symbolizing meme stocks, meme tokens and pupcoins
Illustration of Shiba Inu dog wearing sideways cap in front of pinkish red background, symbolizing meme stocks, meme tokens and pupcoins

Source: shutterstock.com/Vectordidak

One of the riskiest tokens to own is Dogecoin (DOGE-USD), and investors should steer clear of this token. Why? Well, Dogecoin has heavily relied on community trends relative to its underlying utility.

Despite occasional rallies driven by catalysts like the recent Xpayments launch, hype often precedes selling pressure, undermining gains almost immediately. Despite celebrity endorsements and a dedicated community, Dogecoin lacks fundamental drivers to justify an investment thesis in this meme token.

At $0.078 per token, DOGE rose 3.72% over the last week, trading between $0.077 and $0.080 since Jan. 30. Sellers largely controlled the momentum, with attempts by bulls to drive the price met with resistance, reflected in the RSI peaking at 52.30 on Feb. 5 before dropping to 47.95.

In a bullish scenario, an influx of new addresses and increased buying pressure could push the price to $0.085 or even $0.090. Conversely, if bears dominate, Dogecoin may drop to $0.075. I’d bet on volatile price action, and the token is likely heading lower over the long term.

4-Chan (4CHAN-USD)

Icons of meme stocks on phone screen. meme stock crashes
Icons of meme stocks on phone screen. meme stock crashes

Source: Michael Vi / Shutterstock

4-Chan Token (4CHAN-USD) debuted for trading on May 3rd, 2023, boasting an enormous total supply of 10 quadrillion tokens. While its market cap data remains unavailable due to its recent launch, its price trajectory has been notable. Initially, 4CHAN saw early gains before stabilizing, then gradually gaining momentum. Yet, comparing its potential to established meme coins like PEPE is premature.

As a newcomer, 4CHAN awaits the catalyst to go viral potentially. However, it’s important to note that the token lacks supply control, governance and security, deterring cautious investors. The project’s initial promise faded before regaining momentum. Caution is advised for investors.

On the date of publication, Chris MacDonald did not have (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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

More From InvestorPlace

The post Meme Token Meltdown: 3 Cryptos to Kick to the Curb in 2024 appeared first on InvestorPlace.