Cryptocurrencies have gained immense popularity in recent years, but not all digital currencies are created equal. While some cryptocurrencies have shown promise and are poised for success, others are nothing short of investment landmines. In this article, we will be discussing five cryptocurrencies to avoid like the plague in 2023.
The first cryptocurrency that investors should avoid at all costs in the new year is Shiba Inu (SHIB), a meme coin that gained immense popularity in 2021. While SHIB tokens rallied more than 121,000,000% between January and October of 2021, its value plummeted by more than 90% in 2022 from its all-time high of $0.00008841. Unfortunately, this downward trend could continue into 2023.
One of the biggest issues with Shiba Inu is that it lacks differentiation and competitive advantage. It is just an ERC-20 coin built on the Ethereum blockchain, which makes it a payment coin. Unfortunately, there are countless other digital currencies that could also be used for payments, and SHIB is not even a popular payment option.
Moreover, SHIB’s catalysts have failed to live up to expectations. For example, the public domain test of level-2 blockchain solution Shibarium, which was designed to lower transaction fees and accelerate the development of blockchain-based gaming, failed to materialize in 2022. Additionally, interest in non-fungible tokens (NFTs) has waned, which puts a damper on Shiba Inu’s gaming and metaverse ambitions.
Terra Classic and TerraClassicUSD
Terra Classic (LUNC) and TerraClassicUSD (USTC) are two cryptocurrencies that investors should avoid in 2023. Prior to May 2022, these two digital currencies appeared to be revolutionary and surefire, but they are now linked at the hip and have lost their appeal.
TerraClassicUSD was once a stablecoin that offered yields of up to 20% and was pegged to the U.S. dollar. Meanwhile, Terra Classic was being minted or burned based on an algorithm to help TerraClassicUSD maintain its peg. However, over $2 billion in TerraClassicUSD was unstaked in early May, which caused TerraClassicUSD to unpeg and led to the minting of trillions of Terra Classic tokens. More than $60 billion in market value was lost in a matter of days, and TerraClassicUSD is now de-pegged, which means Terra Classic no longer serves any purpose.
The native token of the FTX crypto exchange, FTX Token (FTT), is another cryptocurrency to avoid in 2023. While FTT tokens have shown some promise, there are better investment options available in the market.
One issue with FTT is that it is highly correlated to the crypto market. As such, its value is influenced by market trends and fluctuations, which makes it highly volatile. Additionally, FTX is not yet a household name in the cryptocurrency world, which makes it riskier than other more established exchanges.
Finally, investors should also avoid Dogecoin (DOGE) in 2023. While DOGE gained popularity due to its meme-inspired branding and Elon Musk’s tweets, it lacks fundamental value and is highly volatile.
Moreover, Dogecoin’s popularity is driven primarily by social media hype, which means its value is highly subjective and dependent on trends. Additionally, Dogecoin has no real-world applications and is not widely accepted as a payment method, which further undermines its value.