Investors looking for cryptos to sell don’t really need to look far. Indeed, taking the short side of the bet on just about every crypto project this year has been profitable.
However, at these depressed levels, the bulls are beginning to show interest in investing in some beat tokens. With speculative interest approaching lows not seen in some time, perhaps the rebound potential of many high-momentum cryptos is worth a look? After all, we saw what happened after the pandemic.
That said, not all crypto projects are the same. Like the stock market, there are quality projects that offer real utility to users. And then there are other popular digital tokens with little use other than as speculative bets.
The difference between the two is the hardest part. But it is important to know what cryptos to sell and when.
Here is a list of seven projects that investors might consider selling, at least in the short term. This list includes some projects that many investors can be optimistic about in the long term (myself included).
However, in this market, here is my list of cryptos for sale – ones that I think could have significant downsides in the short term.
Shiba Inu (SHIB)
One of the best performing meme tokens of 2021 has become one of the biggest laggards of 2022 – and the first of our cryptos to sell. In effect, shiba inus (SHIB-USD) is one of the most speculative tokens. It is fitting to start this list with a token that has already seen multi-million percent moves in less than a year.
Indeed, momentum-driven speculative rallies work both ways. Right now we are in the middle of what many are calling a “crypto winter”. What this really means, in simple terms, is an extended bear market.
However, no matter how you put it, the future is not so bright for Shiba Inu. With no speculative interest in this crypto project, there really isn’t much under the hood for investors to latch onto. Yes, there is a decentralized exchange called Shibaswap in the works, as well as an NFT (non-fungible token) art incubator. But given the reduction in transaction volumes on the network, many believe that this project may not survive a sustained bear market.
Another meme token that has taken the market by storm this year is ApeCoin (APE-USD). While this token is “only” down 46% since its ICO date this year, it should be noted that the APE was launched in March 2022, making this project an outlier on this list.
ApeCoin is unique in that this project was started with the blessing of the creators of the Bored Ape Yacht Club NFT collection. ApeCoin was designed to be a next-generation NFT, used in a Bored Ape ecosystem that will eventually include a metaverse and other interactive media.
However, interest in anything Metaverse-related has died out. NFT volumes and prices are down (including Bored Apes). And ApeCoin’s links with the Ethereum (ETH-USD) network have become a thorn in the side of users and investors. High transaction costs and network congestion plagued this project for some time.
There are certainly many investors, myself included, who have been optimistic about gimbal (ADA-USD). However, there is also a growing thesis about this project that investors worried about near-to-mid-term crypto performance should consider.
Cardano is a blockchain platform that is built on a PoS consensus protocol known as Ouroboros, which validates transactions without huge energy costs. This is a good thing for long-term investors.
However, many predictions for this token are down, due to concerns about the hype related to this network. Cardano’s relatively low Total Value Locked (TVL) metrics compared to its competitors have many concerns. Additionally, with the upcoming Ethereum merger, there are concerns that Cardano’s earlier market share gains could turn into losses.
It is therefore, at least in the short term, a project that investors should watch closely.
The sandbox (SAND)
Like other metaverse-related investments that surged last year, The sandbox (SAND-USD) saw incredible momentum through the end of 2021. However, with sentiment clearly dying out in this space, The Sandbox has become a token that many believe has a significant downside from here.
I have covered the case of the bull on this token in the past. However, there are a number of bearish reasons why investors should avoid this project for now.
Clearly, user metrics for The Sandbox and other metaverse crypto projects have fallen from their 2021 highs. fall. As a result, until the next bull market, there might be waning interest in investing in blockchain-based crypto projects.
Last month, only 700 transactions took place among 367 unique buyers. That’s a massive drop from over 3,800 buyers and 6,700 transactions in January alone.
Dogecoin (DOGE-USD) is the “original” meme token. This status propelled Dogecoin into the top 10 in terms of all cryptocurrencies by market capitalization.
While impressive, this massive market cap also means there is more downside potential, should the meme token market fully correct. If the whales that hold the majority of the DOGE tokens decide to sell in concert, this is a token without much downside support.
Admittedly, I was surprised at how well Dogecoin held up during this recent period of market turbulence. The Dogecoin community is strong, led by the “Dogefather” himself, Elon Musk.
However, given the volatility we’ve seen around Musk lately, I’m not sure this is a project worth tying his wealth to. Especially at such an incredible valuation.
Now let’s move on to the bear case of a project that many investors, including myself, are excited about in the long run. This may surprise many people on a list of cryptos for sale.
Solana (SOL-USD) is one of the fastest and cheapest blockchains. Plus, in terms of developer interest and app growth, Solana is a real standout. There’s a lot to like about the trajectory of this project, aside from its declining token price.
However, a number of prominent figures have highlighted the case of the bear on Solana. Justin Bons, CIO of Cyber Capital, is one such person. The Bear’s thesis on Solana, to put it lightly, is brutal.
This network’s outages (seven in the past few months) far outnumber most competing projects. The network’s validation mechanism is more centralized than that of competitors, which leads to security risks. And much of the growth Solana has seen, according to Bons, could be a ruse, to allow insiders to sell.
For those adhering to this thesis, Solana is a token to sell, rather than buy, at least until these issues are ironed out.
Bitcoin Money (BCH)
bitcoin money (BCH-USD) or “Bcash” is the last of my cryptos for sale. It became popular as the Bitcoin network’s first major hard fork from the Bitcoin blockchain. During this year’s stock market crash in May, Bitcoin Cash was one of the hardest hit tokens among large-cap projects. This is partly due to the questionable value of the network, compared to its actual adoption in the real world.
Many crypto experts have been waiting for more from Bitcoin Cash since its inception. Indeed, the idea that Bitcoin would somehow become a cryptocurrency used for payments on almost everything has been ubiquitous in the crypto community. This vision never materialized. However, Bitcoin Cash was launched with the aim of solving this problem.
So far, there has been little adoption on this front. As a result, investor interest in this Bitcoin payments project has waned. With no significant catalysts on the horizon, I think this is a project to be wary of in this bear market.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.