7 Cryptos to Sell Before They Go Obsolete

While the crypto rally has created some excitement in the sector, it is also a great opportunity to start looking for cryptos to sell while their valuations are elevated. Solid projects are still good investments at these levels, but the market is saturated with meme coins and tokens with no utility.

I believe most of these impractical projects will constantly bleed due to their lack of use cases. Sure, there may be some spikes during market rallies (like the current one), but selling/shorting them now is a surefire way to make significant profits when crypto investors start taking a more pragmatic approach . Furthermore, many new crypto projects are “pump and dump” schemes or “back pulls” that can collapse, especially when their valuations are high.

Still, I would avoid using any kind of leverage when shorting these signs. The crypto market is very irrational, and you can be liquidated due to unexpected catalysts. Some of these cryptos also have low volume and thin order books. So I recommend placing multiple stop-loss orders when you do sell. With that in mind, these are the seven cryptos to sell:

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Cryptos to Sell: TRON (TRX-USD)

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TRON (TRX-USD) tops this list due to its dangerously similar characteristics to the failed Luna project. It has a stablecoin project called USDD (USDD-USD) in its ecosystem that directly supports TRX. This USDD token could take down the entire Tron ecosystem as it is rarely pegged to the dollar and has very risky fundamentals.

The USDD token is backed almost entirely by digital assets, with a claimed collateral ratio of 176%. This is down almost 25% since last year, but the actual collateral is much lower. Of the total collateral, ~56% comes from a fire contract, while another 10% comes from other TRX-related assets. This leaves only $422 million of Bitcoin (BTC-USD) as reliable collateral for USDD. Indeed, I don’t believe it can save the token since the Luna stablecoin failed with more than $3.5 billion worth of BTC.

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Me too warned in my last article about TRON that they misleadingly reported $392.6 million worth of USD Coin reserves when it was JustLend USDC (JUSDC-USD). Indeed, the whole JUSDC project is now worthwhile barely $7 millionand the reserves have been removed from the site. With so many red flags, TRX is one of the best cryptos to sell in my book.

Cryptos to Sell: Dogelon Mars (ELON-USD)

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Dogelon Mars (ELON-USD) is a crypto project trying to ride on the Dogecoin (DOGE-USD) and Elon Musk madness. There are many signs that it does. But what makes Dogelon Mars uniquely dangerous is the fact that the Methuselah Foundation holds 40% plus of the tokens.

I pointed it out in a article almost a year ago that they could start selling the tokens. And indeed, they began to do so. The Foundation plans to sold 3.14% of the tokens each year to support its budget. While this won’t cause a sudden collapse, I can see the pie growing if additional budget needs exist. Even if they keep their promise, I believe the demand for the token is too low for it to survive in the long term.

Cryptos to Sell: Solar (SXP-USD)

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solar power (SXP-USD) crypto has been one of the hottest crypto projects in recent weeks. It quadrupled in a week, driven mainly by Korean investors. The cryptocurrency project is similar to Solana (SOL-USD), a layer-1 proof-of-play blockchain that allows smart contracts with very low fees.

But while this may have some utility, the project is far from safe. The top 10 holders of SXP own 99.13% of the entire offer. The recent rally also appears to be heavily manipulated, with Solar declining over the past week after hitting a high of 90 cents. Furthermore, the use cases do not mean that this project is unique in any way. Most developers will find the Solana ecosystem much more compelling than Solar, as it only has 53 validators for the entire network. So it is one of the best cryptos to sell.

Bitgert (BRISE-USD)

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Bitgert (BRIS-USD) appears as a very useful and ambitious project on paper. It offers “unbeatable speed and the lowest fees, with top-level security and scalability” and claims to be the fastest growing crypto ecosystem. The project advertised its offices and now advertises its own electric vehicle brand.

For starters, Bitgert doesn’t have gas fees on paper. But it has a steep tax rate of 12% on every transaction. A large part of that goes directly to the marketing team and the developers. Moreover, the project was probably made by Vindax, a company that sells cryptocurrency projects for $4,900. Once users identified this connection, Bitgert’s information was hastily deleted from Vindax’s website.

Of course there is more. I pointed out in another column that the creators of the project were found to be using AI-generated fake identities. Although they initially tweeted about revealing their real identity, they later removed the team page after being exposed. I could go on about their controversies. But overall, this is a project riddled with red flags, and I would highly recommend selling it if you own any of the tokens.

OG Fan Token (OG-USD)

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OG Fan Token (OG-USD) is a crypto fan project for an eSports organization that competes in Dota 2 and CS:GO tournaments. The OG token quadrupled in price within two days, but is now declining rapidly as the excitement has begun to die down.

In my opinion, the valuation of this crypto seems absurd, since OG is far from a famous esports team. If we look at the most popular esports team, FaZe (NASDAQ: FAZE ), their shares trade at a mere $38 million. In comparison, the OG token has a similar market cap while being a fan-only token. This is even more confusing when you consider that the OG organization has a significantly lower follower count across all social platforms. Therefore, it is a strong sell and will only bear down in the long run.

Shiba Inu (SHIB-USD)

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While Dogecoin (DOGE-USD) may have a future if Elon Musk integrates it into his products in the distant future, Shiba Inu (SHIB-USD) is unlikely to be a good beneficiary. The token is changing hands more than 87% below its all-time high as there are very few developments to be optimistic about. Additionally, while investors in SHIB previously thought they could benefit more from the Dogecoin frenzy, Elon Musk revealed that he does not own any SHIB tokens. This caused the price of SHIB to collapse in late 2021.

This crypto still has a high market cap as many crypto exchanges list it. But ultimately, a $6.5 billion valuation for SHIB seems too much. Even as a currency it is not very practical. SHIB relies on the Ethereum blockchain, which means users need ETH for gas fees. This makes Shiba Inu transactions very expensive and inconvenient.

Shiba Predator (QOM-USD)

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Shiba Predator (QOM-USD) is more of a double meme coin. The purpose of this token is to flip another meme coin, Shiba Inu, into price. While both of these projects have next to no use and are intrinsically overrated, Shiba Predator takes the cake here as one of the most pointless projects.

About Low-Cap and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary on cryptocurrencies that have a market cap of less than $100 million or trade in volume less than $100,000 each day. This is because these “penny cryptos” are often the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. Read more: How to avoid popular cryptocurrency scams

As of the date of publication, Omor Ibne Ehsan had a SHORT position on SXP and a LONG position on ETH. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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