In the ever-evolving landscape of cryptocurrencies, the market has expanded considerably since the inception of Bitcoin (BTC), presenting traders and investors with diverse opportunities.
Even though the crypto market offers a string of opportunities for investors and traders to take advantage of, there are some digital assets that do not maintain consistent appeal for investment.
Having said that, after conducting a thorough analysis of market circumstances on August 4, Finbold selected 5 cryptocurrencies investors should steer clear of, at least in the short term.
Bald (BALD)
Right after its long-awaited launch at the end of July, BALD, the native token of the Base blockchain, saw its price plummet sharply after a suspected rug pull executed by contract deployers.
Shortly after the token crashed, on-chain data revealed that the crypto wallets to which the tokens were transferred were connected to Alameda Research, a now-defunct trading firm once controlled by FTX co-founder Sam Bankman-Fried.
At the time of publication, BALD was trading at $0.007885, up 21.5%. However, the crypto token remains sharply down from its July 31 launch, at -62.5%.
Even though its price somewhat recovered in the past 24 hours, it is clear that BALD’s launch was a scheme designed to defraud investors.
Crypto X (CX)
Crypto X (CX) is “the groovy and revamped version of Crypto Twitter (CT).”
In other words, it is a meme coin that was inspired by Twitter’s recent rebranding to X. It is safe to assume that this new crypto token was hoping to capitalize on Elon Musk’s decision to kill Twitter’s iconic blue bird.
But things are not going as planned for CX, at least for now. The crypto token plunged almost 90% since its launch, dropping from $0.000001065 to $0.0000001276 in just several days. After all, it is a meme cryptocurrency, with no significant utility or use cases, whose price is driven solely by hype and social media influencers.
Wemix (WEMIX)
WEMIX, the crypto token associated with the South Korea-based game developer Wemade, attracted investors’ attention in 2021 and in the first half of 2022 thanks to some of its exciting advantages, such as low gas prices, Permanent Minting Rewards (PMRs), and strong throughput of 4,000 transactions per second.
However, the cryptocurrency was delisted from the biggest digital asset exchanges in late 2022 due to misleading information about its circulation numbers. WEMIX failed to recover in price since then, with its price currently trading at $0.611, down 2.9% on the day, 14% over the past month, and 80% on a 1-year chart.
Worldcoin (WLD)
The much-debated Worldcoin (WLD) token saw its price skyrocket upon its launch, but the hype was short-lived.
This new cryptocurrency is based on a controversial concept of using iris scans to verify users’ identities. The project immediately attracted the attention of global regulators, placing its prospects of widespread adoption at significant risk.
For instance, the government of Kenya outright banned Worldcoin from registering new users, citing privacy concerns. Founded by OpenAI CEO Sam Altman, Worldcoin offers free WLD tokens to those who agree to have their eyeballs scanned.
The cryptocurrency fell more than 1.7% in the past 24 hours, while its weekly and monthly gains remain positive at 3.6% and 36.1%, respectively. However, given that more regulators are scrutinizing this project, there is too much uncertainty surrounding it to justify buying its token.
Terra Classic (LUNC)
Even though the Terra Classic community has been striving to improve the network recently, we still consider LUNC to be a highly risky investment. As can be seen from the below chart, LUNC continues to trade in a very volatile manner, and should not be on traders’ watchlist unless they are prepared to deal with significant risks.
The cryptocurrency is down 1.1% on the day, in addition to plummeting 4.8% and 9.8% over the past week and month, respectively. The crypto was changing hands at $0.00007831 at the time of publication.
As the digital asset market remains volatile, continuous vigilance and independent research are crucial before considering any cryptocurrency investment. For that reason, it is crucial for investors to embrace change and stay informed to make well-informed decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
