Source: eamesBot / Shutterstock
Since its inception, the cryptocurrency market has periodically experienced a series of ups and downs that are far more dramatic than the regular stock market. The main reason for this relative instability is that most cryptocurrencies, despite enthusiastic support from early adopters in computer science, have no real-world, purpose, or value beyond the niche use for which they were designed. The fact is that it lacks.
So, beyond the traditional scams that exist in today's cryptocurrency world, there are some coins that looked like good investments on paper at the time. These coins may have once defied expectations and attracted a lot of attention. However, they end up being cryptocurrencies to avoid due to their low return on investment or very low chance of recovering to their peak price.
Cardano (ADA-USD)
Source: Shutterstock
Once a blossoming success story, it inspired a number of high-tailed investors. cardano (ADA-USD) represents one of the biggest losses in cryptocurrency investing today. The company's original mission to create a blockchain platform aimed at creating the tools necessary for positive global change has completely run out of steam.
The term was originally promoted as a legitimate replacement for two popular coins. Bitcoin (BTC-USD), and Ethereum (ETH-USD) Cryptocurrencies have lost $7 billion in the last month. In reality, Cardano was meant to be a new premium coin. Solano (Sol – US dollar), which in turn will generate life-changing returns for investors.
The coin is currently trading at a fraction of its peak price, essentially missing out on all of the recent hype surrounding the crypto industry. If another crash occurs, the value of the coin may continue to decline. Cardano is therefore one of the most important cryptocurrencies to avoid when first deciding how to assemble your crypto portfolio.
Shiba Inu (SHIB-USD)
Source: siberian_horse / Shutterstock.com
\Enthusiastic Memes and Dog Coins, Shiba Inu (SHIB-USD) once told one of the most inspiring underdog stories. Unfortunately, it seems that the Shiba Inu's true purpose as a coin has finally caught up with it. In other words, this coin was never intended to provide investors with long-term returns or a hedge against inflation. Instead, the coin's creator capitalized on the cyclical hype surrounding the growing popularity of cryptocurrencies.
Currently, this coin has no real use and there are essentially no major platforms that accept this coin as a form of payment. Moreover, its internal Sybarium ecosystem still has a lot of room for improvement. So, if you're still asking yourself, “Will a Shiba Inu be able to strike a penny?” I'm here for you.
It is mathematically impossible for 589.26 trillion coins in circulation to reach the value of 1 cent.
Algorand (ALGO-USD)
Source: Shutterstock
Algorand (ArgoUSD) initially marketed itself as an alternative to traditional high-yield savings accounts. To achieve this, the Coin Staking Protocol has provided the ability for investors to earn up to 14% annual interest when staking their coins. This essentially allows for passive generation of Algorand coins within your wallet. But the problem is that this model doesn't account for the lack of a real basis for Algorand's value. Rather, the only driver of growth was individuals purchasing them to use as savings accounts.
Therefore, if a crash occurs and all coins suffer significant losses, many investors will withdraw their funds. Eventually, all the coins that people have accumulated in the form of savings will run out.
Today, few people talk about Algorand, despite repeated interest in cryptocurrencies and Bitcoin profits. Since no one is interested in this coin, its bottom price remains unchanged. All things considered, Algorand is among the cryptocurrencies to avoid as it has no chance of returning to the $2 level.
On the date of publication, Viktor Zarev did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
