There are thousands of cryptocurrencies, but not all of them will be successful. But there is room for many winners in this vast and ever-changing field. If you want to bet on future success, it’s important to look at things like real-world utility and how a player stands out from their rivals.
Because of this, there are a few cryptocurrencies that you can eliminate from your potential purchase list for now. Here I will talk about two of them who use the Shiba Inu dog as their mascot. These are popular meme tokens, but they lack the solid framework needed for long-term successes in the crypto world. Let’s take a look at these two cryptos to avoid at all costs.
1. Shiba Inus
The first may be the world’s most famous meme token, the Shiba Inu (SHIB 0.78%). This cryptocurrency has jumped more than 45,000,000% in the last year.
The reason for such an advantage? Three elements increase value. The first is the strong community of cryptocurrency supporters, known as the Shib Army. They kept the momentum going on social media and generated excitement about Shiba Inu’s potential.
Which brings us to the second reason for this sharp increase. Many investors flock to the Shiba Inu for fear of missing out. And the third reason? The price of Shiba Inu. It trades for a fraction of a cent. So it is easy for an investor to buy tokens for nothing – and invest in Shiba Inu in case the profits last.
But it is likely that the gains will not last long. The Shiba Inu started to come down. It has fallen 26% since the beginning of the year.
In summary, Shiba Inu is a token that runs on Ethereum. It is used for trading, staking and payments to some merchants. But it doesn’t offer anything unique, so there’s little reason for this token to sizzle again and offer long-term gains.
2. Floki Inu
Floki Inu ( FLOKI ) is named after Elon Musk’s dog. The CEO of Tesla however has no involvement in this cryptocurrency. Floki Inu jumped more than 8,190% from its launch last year to its peak a few months later. Since then, it has dropped 89%.
Floki Inu is proud of his meme-token status. In fact, the cryptocurrency website considers it one of its mainstays. He says the path to mainstream crypto adoption is through “harnessing the power of memes.”
This new token has several uses. It is meant to power a metaverse game called Valhalla. The game, which is currently in development, will be a “play-to-earn” system, so players can earn more tokens as they play.
Floki is also planning a non-fungible token (NFT) market. Finally, Floki has several decentralized financial agreements, which allow investors to stake their tokens or use them as collateral to borrow.
Will all this be enough for Floki to stand out in the world of cryptocurrencies? I do not think so. Its rivals are already ahead in these areas. So it seems unlikely that investors will be particularly invested in Floki for the long term. That’s why it’s best to add this cryptocurrency player to your “avoid at all costs” list.
Source: The Blog
I am Ben Stock, a highly experienced news writer with several years of experience in the industry. I currently work for The News Dept as an author, where I specialize in market-related stories. My passion and expertise lies in providing readers with accurate and up-to-date information on the latest financial developments from around the world.