Despite the current decline in the market, cryptocurrencies have been one of the best performing asset classes in history. Accordingly, the market has yielded more than 550 percent in the last 5 years, compared to a meager 45 percent of the S&P 500. However, this does not mean that every digital currency is a good bet. An investment in Shiba Inu (SHIB) and Terra Classic (LUNC) could crash your portfolio, according to giant consulting firm Motley Fool.
“Terra Classic (LUNC) is an altcoin you should stay away from”
Terra Classic is the new version of the Terra stablecoin platform that crashed spectacularly earlier this year. The entity is now trying to reinvent itself after the great crash. But investors shouldn’t take that bait, according to the Motley Fool. According to the firm, Terra’s future looks as bad as its past. cryptocoin.com As we reported, Terra wiped billions of dollars off the market in its May crash. Currently, the project has a shattered reputation and a founder who is still on trial.
In fact, Terra Classic says the platform is independent of former Terra founder Do Kwon, who is currently on trial. The new developers of the platform consist of a group called Terra Rebels. This group claims that Do Kwon was not involved in the decision-making process of the new project. But Kwon’s negative influence will be hard to shake. In September, South Korea issued an arrest warrant for Do Kwon in connection with the TerraUSD explosion. After this news, Terra Classic fell by 25% in one day.
“SHIB will never explode like in 2021”
Shiba Inu, which was founded in 2020 to capitalize on the hype about Elon Musk, has attracted attention with a return of about 60,000,000% at the end of 2021. Indeed, SHIB was one of the best debuting cryptocurrencies in recent history. However, such a performance seems unlikely to happen again. The tightening global economic conditions and the nature of the meme token are fueling negative sentiment for the asset. When capital is scarce, investors are less interested in risky assets.
While these challenges affect the entire cryptocurrency market, highly volatile assets like SHIB are more vulnerable. Meme coins are fueled by hype rather than fundamentals like speed or transaction capacity. SHIB is trying to get out of this situation with new projects like Shibaverse, a metaverse venture. However, Metaverse has not started yet. At the end of the day, Shiba Inu looks like it will be one of the hundreds of meme tokens that do not bring any innovation to Blockchain technology. At this point, SHIB is a difficult asset to generate a return on investment.
“These are just two bad bets”
As the cryptocurrency market as a whole struggles, some assets like LUNC and SHIB have a particularly difficult road ahead. Despite past success, regulatory overhangs and poor competitive potential are likely to cause these assets to underperform their peers. Regardless, investors should think twice before investing their money in them.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.