What to sell right now. Experts named the worst cryptocurrencies
Experts explained which altcoins are at risk of depreciation in the short term, and why they are fundamentally losing to the rest of the market
The cryptocurrency market continues to remain under pressure. Last week, bitcoin updated a two-year low in value at $15,400. Now the first cryptocurrency is trading at $16,800, which is 76% lower than the historic high of $69,000 set in 2021.
Most altcoins have also fallen significantly in price, with many of them hit even harder. The situation was exacerbated by the collapse of one of the largest crypto exchanges, FTX, which led to the mass bankruptcy of cryptocurrencies and devaluation of associated tokens.
"I would get rid of various wrapped tokens now (or better yet, a week ago). It's not just about the obvious losers like Wrapped Bitcoin (WBTC) and stETH from Lido, which suffered due to the collapse of FTX and Alameda, who had pawned 100k WBTC against bitcoins, which now turn out to be not 100k but 72k. All wrapped tokens, even those with no collateral problems, are affected by panic. For example, WETH," co-founder of ENCRY Foundation underlined.
He added that he would get rid of all wrapped tokens now if possible. In addition, the expert recommended to withdraw from all projects Play-to-Earn and similar Move-to-Earn.
"Right now, the market doesn't care about game mechanics. It's entertainment for the bull cycle. And so far none of these projects have proven to be long-lasting: everywhere the number of active users has decreased by several times. It's unlikely that the trend will turn towards growth anytime soon."
"Among the riskiest these days, I would include the token exchange Huobi (HT), whose price changes are manipulative, and KuCoin (KCS), around which FUD is hyped about the withdrawal of funds by its owners."
Assets that dominate portfolios of companies facing bankruptcy or with serious risks of doing so may also suffer, the Bestchange senior analyst added
For example, Alameda Research has invested large sums in such projects as: Polygon (MATIC), Anchorage Digital, Immutable (XIMX), Voyager Token (VGX), 1inch (1INCH), Near Protocol (NEAR), Helium (HNT).
FTX Ventures invested in Yuga Labs (owner of the Apecoin token and NFT collections Bored Ape Yacht Club, CryptoPunks and Meebits), Near Protocol (NEAR), Aptos (APT) and the crypto platform BlockFi, which is also bankrupt, and it was an investor in GamerGains (GAMER).
"And this is just the 'tip of the iceberg,' in fact there are hundreds of projects and they are intertwined with each other with investments in different rounds. Therefore, the risks of idly watching is quite high, informed investors should conduct a serious "revision" of their assets."
In the current situation, it is worth carefully checking other related companies and their investments, the expert advised. According to him, the network of projects and their tokens, which came to the now "toxic" investments from the conglomerate FTX, is pretty wide, so it is worth finding out about all of the major holders of tokens, which investors are considering as an investment. A series of bankruptcies and asset sales of funds may go painlessly for most of these projects, but at the same time, it would be too frivolous to completely ignore such risks, the expert believes.