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7 Cryptos to Sell Before They Become Obsolete

6M ago





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

Still, I would avoid using any sort of leverage when shorting these tokens. The crypto market is very irrational, and you could get liquidated due to unexpected catalysts. Some of these cryptos also have little volume and thin order books. Thus, I recommend putting multiple stop-loss orders when you do sell.  With that in mind, these are the seven cryptos to sell:

ELON-USD Dogelon Mars $0.0000003
SXP-USD Solar $0.60
BRISE-USD Bitgert $0.0000004
OG-USD OG Fan Token $9.48
SHIB-USD Shiba Inu $0.000011
QOM-USD Shiba Predator $0.00000006

Cryptos to Sell: TRON (TRX-USD)

Cryptos to sell before they die. Cryptocurrency crash. Red graph. Price going down. Collapse. 3d illustration.
Source: MP Art /

TRON  (TRX-USD) is at the top of 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 TRX directly backs. This USDD token could take the entire Tron ecosystem down as it is rarely pegged to the dollar and has very risky fundamentals.

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

I also  warned  in my last article about TRON that they had misleadingly reported USD Coin reserves worth $392.6 million when it was JustLend USDC (JUSDC-USD). Indeed, the entire JUSDC project is now worth  barely $7 million, and the reserves have been removed from the website.  With so many red flags, TRX is among the top cryptos to sell in my book.

Cryptos to Sell: Dogelon Mars (ELON-USD)

Crypto Currency market panic sell concept. Double exposure of digital coins price drop and technical chart. Both are in red color theme to indicate the bearish stage. Cryptos to sell.
Source: kkssr /

Dogelon Mars (ELON-USD) is a crypto project that tries to ride on the Dogecoin (DOGE-USD) and Elon Musk frenzy. There are lots of tokens that do that. But what makes Dogelon Mars uniquely dangerous is the fact that the Methuselah Foundation holds 40%-plus of the tokens.

I pointed out in an  article  almost a year ago that they could start selling the tokens. And indeed, they have started to do so. The Foundation plans to  sell 3.14% of the tokens  each year to support its budget. While that won’t cause a sudden crash, I can see that pie increasing if additional budgetary needs exist. Even if they do hold their promise, I believe the demand for the token is too low for it to survive in the long run.

Cryptos to Sell: Solar (SXP-USD)

Grayish photo of investor's hands hovering over laptop with red stock graph showing downward arrow overlayed on top of the image
Source: Sorokin

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

But while it may have some utility, the project is far from safe. The top 10 holders of SXP  own 99.13%  of the entire supply. The recent surge also appears heavily manipulated, and Solar has been trending down for the past week after peaking at 90 cents.  Furthermore, the use cases do not mean this project is unique in any way. Most developers would find the Solana ecosystem much more compelling than Solar, as it only has 53 validators for the entire network. Thus, it is one of the top cryptos to sell.

Bitgert (BRISE-USD)

Figurines of two little men in suits looking at downward stock arrow going through the floor
Source: Salmon

Bitgert (BRISE-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 itself as the fastest-growing crypto ecosystem. The project advertised its offices and is now advertising its own electric vehicle brand.

To start, Bitgert does not have gas fees on paper. But it has a steep tax rate of 12% on every transaction. A big part of that goes directly to the marketing team and the developers. Moreover, the project was likely made by  Vindax, a company that sells cryptocurrency projects for $4,900. As soon as users identified this connection, Bitgert’s information was hastily erased from Vindax’s site.

Of course, there’s more. I pointed out in another  column  that the project’s creators were found to be using AI-generated false identities. Although they initially tweeted about disclosing their real identities, they later removed the team page after being exposed.  I could go on about their controversies. But overall, it 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)

a frustrated man with a white board behind him that features a black downward arrow
Source: Shutterstock

OG Fan Token (OG-USD) is a fan crypto 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 rapidly declining as the excitement has started to wear off.

In my opinion, the valuation of this crypto seems absurd, as OG is far from being a well-known esports team. If we look at the most popular esports team, FaZe (NASDAQ:FAZE), their stock trades at a measly $38 million. In comparison, the OG token has a similar market cap while only being a fan token. It is even more perplexing when you consider that the OG organization has a substantially lower follower count on all social platforms.  Therefore, it is a strong sell and will only head down in the long run.

Shiba Inu (SHIB-USD)

Source: Shutterstock

While Dogecoin (DOGE-USD) may have a future if Elon Musk integrates it into his products in the far future, it is unlikely that Shiba Inu (SHIB-USD) will be a good beneficiary. The token changes hands more than 87% below its all-time high as there are very few developments to be optimistic about. Moreover, while investors in SHIB previously thought they could profit more from the Dogecoin frenzy, Elon Musk revealed that he does not own any SHIB tokens. That caused the price of SHIB to crash 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. That makes Shiba Inu transactions very expensive and inconvenient.

Shiba Predator (QOM-USD)

a businessman with his thumb facing down
Source: Shutterstock

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

On Low-Capitalization and Low-Volume Cryptocurrencies:  InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That's because these "penny cryptos" are frequently 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's writers disclose this fact and warn readers of the risks.
Read More:  How to Avoid Popular Cryptocurrency Scams

On 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 writer, subject to the Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a self taught investor. You can follow him on LinkedIn.

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