Cryptocurrency analysts, who took into account many factors such as the FTX scandal, banking crises, and deteriorating economies, commented on these 3 altcoin projects as “risky”! So, what are these altcoins? Here are the details…
Experts explained: “These 3 altcoin projects are very risky!”
Shiba Inu (SHIB)
The Shiba Inu (SHIB) has been a volatile investment option for investors, with its popularity driven mainly by memes and the success of Dogecoin. According to experts, it has no unique advantages over other digital currency options, making it a poor choice for sustained investment.
Shiba Inu’s team is working to increase adoption through Shibarium, a Layer-2 scaling solution. This initiative aims to increase transaction speeds and reduce user costs and has applications in various fields such as gaming, NFT and metaverse. Santiment data shows that the number of new participants joining the Shiba Inu network has dropped 30 percent over the past two weeks, from 1,624 on April 16 to 1,147 on April 25.
The NVT ratio for the Shiba Inu network indicates that the current prices of the SHIB are overbought. This ratio measures the value of the network compared to trading activity by dividing the market cap by the daily trading volume. Despite the progress the Shiba Inu has made, according to experts, its price is mostly tied to unpredictable hype cycles triggered by tweets from famous people. While these result in short-term gains, they are volatile and difficult to predict. That’s why investors place SHIB among the riskiest investments.
Dogecoin (DOGE)
Dogecoin (DOGE) emerged from Luckycoin, a defunct cryptocurrency created by copying and modifying its source code. The original digital currency Bitcoin was the inspiration for the architecture of Dogecoin. Dogecoin comes across as a crypto created for fun, with no major development plans. Mainly, DOGE relied on Elon Musk’s sense of humor and favorable market conditions in 2021, with its price increasing by more than 10,000 percent. However, similar to other digital assets, it suffered a dramatic drop in value, showing flaws in its underlying framework.
DOGE experienced a significant decline on April 19 after a significant but erratic volatility. Like other cryptocurrencies, the meme-based coin fell below the 200 DMA at $0.083. Its price is similar to the 50 DMA which is currently around $0.079. DOGE’s volume has been falling since April 3, creating an uncertain outlook for the cryptocurrency. To gain confidence, bullish traders need to push the price up to $0.085 soon. However, if they fail to do so, DOGE may fall back to the soft support at $0.07 due to volatility. According to experts, although Dogecoin looks fun, it is not a wise investment option. Unlike stablecoins backed by assets, or Ethereum, which adds value to the financial system, Dogecoin does not offer such benefits. Despite all this, the DOGE community stands out in the crypto community.
Floki Inu (FLOKI)
Continuing the Dogecoin (DOGE) and Shiba Inu (SHIB) model, the altcoin Floki Inu (FLOKI) is one of the latest additions to the meme coin universe. Floki Inu, a meme-based cryptocurrency named after Elon Musk’s pet, has gained immense popularity due to its three-pronged approach of meme status, benefit and charitable endeavors, which sets it apart from other meme coins.
FLOKI is a coin affiliated with the Floki Inu project, designed to run on Ethereum and the Binance Smart Chain (BSC). It complies with ERC-20 and BEP-20 standards and users can easily bridge FLOKI coins between two chains for storage and transactions. However, unlike other meme coins, the value of Floki is still subject to the influence of high profile people like Elon Musk.
Altcoin FLOKI’s high volatility is closely tied to Elon Musk’s tweets, which can cause rapid price fluctuations. With a currency volatility index of 13 percent, FLOKI is one of the most unstable cryptocurrencies. However, due to the lack of technical solutions unlike Shiba Inu and Dogecoin, FLOKI may need help keeping its price in the long run. That’s why experts place FLOKI among the riskiest cryptocurrencies.
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