The tenth month of the year, October, has started on a fairly positive note. Flagship asset Bitcoin and other major cryptocurrencies recorded modest increases last week but what has been established from time past is that fortunes can be made and lost in the blink of an eye, even in a bull market.
The recent crypto rally has sparked excitement, amid rumours of a new uptrend. But yet, caution is advised. This rally may not sustain for long due to economic concerns and the underperformance of altcoins is an indication for investors to tread carefully.
It can however be tough to sort cryptocurrencies to buy from the ones to avoid. The ecosystem is replete with dubious projects and cryptocurrencies with questionable value and credibility which means investors are going to have to decide between protocols and cryptos to avoid when it comes to where to put their capital, especially in an important month like October.
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While it’s not a very easy distinction to make, this article explores three ultra-risky cryptocurrencies that should raise red flags for potential investors in the month of October.
Shiba Inu
Known as the “dogecoin killer,” Shiba Inu relies heavily on meme coin status, catapulting its market cap to over $4 billion. However, despite the initial fame, the Shiba Inu project has failed to live up to its expectations.
Born out of a desire to disrupt Dogecoin, this means very little in any business sense. No value is being created because no utility is being created. Shiba Inu’s metaverse project and token holder count are losing steam, Data shows that over 77% of SHIB addresses are now in red and the token value has dropped 30% year over year (YOY) with indications that the token will continue to decline in October.
Also, the token holder count remains static at around 1.24 million, suggesting waning interest, making it prudent to exit due to volatility and lack of utility in such cryptocurrencies. Selling and avoiding the memecoin is a smart choice in October as its potential appears limited.
Worldcoin
The Worldcoin project, co-founded by Sam Altman made headlines earlier this year as the first-ever AI crypto project that determines “personhood” by scanning users’ eyeballs, helping to prove that someone is a person and not a robot.
The cryptocurrency backing the project, $WLD became popular and achieved global acclaim because those who accepted to get their eyes scanned during the beta phase got free WLD tokens. At first, the digital asset attracted some interest among crypto enthusiasts, especially after getting listed on major exchanges, but now, price trends leave much to be desired.
Technext did an analysis in September which showed that data says over 98.52% of WLD investors were counting their losses. This is an indication that there is little or no genuine interest in the $WLD token. It is apparent that people who get their eyeballs scanned only did so after learning of the opportunity to get easy money
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Heading into October, many are still sceptical about the entire project, mainly due to Worldcoin’s approach to biometrics, its unavailability in the US, and the lack of details about $WLD’s token distribution.
It is best for investors to avoid trading the token in October.
Pepe
Pepe, a memecoin which was launched in April, embarked on an astronomical journey to the moon in May. But as expected with a memecoin with no utility, all that goes up must come crashing down. Pepe coin is now a tiny fraction of its value earlier in the year. And its hype-induced popularity strategy is no longer working.
At the moment, Pepe holders can only stand by and hope that it spikes and that those spikes create profitable positions for them. For fresh investors, it’s reasonable to avoid trading the token in October.
This content is for informational purposes only and should not be construed as investment, tax or legal advice. It is strongly recommended that every recipient seek appropriate independent professional advice before acting on any information contained herein, as Technext provides no endorsement, opinion or advice, including investment, tax or legal, and makes no representation or warranty about the suitability of a product for a particular reader or circumstance.
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