The world has far too many cryptocurrencies. CoinMarketCap lists approximately 8,000 cryptocurrencies and tokens, with many more that are too small or unimportant for the site to monitor. It’s clear that this is a fiercely competitive market, and it’s quite improbable that any of these cryptocurrencies will have their distinct use case and large trading community. As investors prepare for a crypto winter, many are looking for which cryptos to sell to mitigate the losses.
The sector is due for a reversal. The Federal Reserve intends to speed up its shrinking, which will make investors more risk-averse in their holdings. Aside from that, China continues to strictly oversee digital assets. Elsewhere, India is decreasing digital currency steadily with new legislation, while the United States is focusing on regulations as Congress convenes to discuss cryptocurrency. These reasons have led to a lot of anxiety among cryptocurrency investors.
The current drop in cryptocurrency prices has heightened this worry. Bitcoin (CCC: BTC-USD) is down almost $20,000 in just a month after reaching an all-time peak. Ethereum (CCC: ETH-USD) is down 10% today, while Avalanche (CCC: AVAX-USD) and Polygon (CCC: MATIC-USD), two recent favorites, are down 14% and 15%, too. These are big cryptos, too; each of the projects listed has a market valuation of billions of dollars.
Taking all these into consideration, it’s evident that not every cryptocurrency will be able to weather a major market slump. But which cryptos should you sell?
If you wish to cut the fat ahead of tough times, here are a few to keep an eye on:
SushiSwap is a notable decentralized exchange (DEX) token; it is the fifth-largest DEX by trade volume and has a loyal fanbase.
It is, nevertheless, suffering some clear internal turmoil. This might easily dethrone SUSHI as one of the leading DEX platforms, particularly if there is a significant market downturn.
SushiSwap has been surrounded by drama since the end of 2020. Chef Nomi, the platform’s founder, was caught withdrawing millions of dollars in Ethereum from the protocol’s development fund wallet in September 2020. From that time, there have been rumors from inside the organization of political infighting.
The platform’s then-leader, the pseudonymous 0xMaki, resigned from their management post in September 2021 to join the movement as an advisor. Mudit Gupta, a core developer, also resigned earlier this month; Gupta made headlines this winter after dismissing the presence of a problem that some crypto experts had recognized as putting over $1 billion at risk.
If that wasn’t enough, the platform’s chief technology officer has resigned. Joseph Delong is the last CTO of the SushiSwap network, as well as the most recent and well-known staff member to leave the project. In his departure tweet, Delong cautions that there is still a lot of infighting at the company, calling the platform “imperiled.”
SUSHI spiked in value today when a big DApp developer proposed incorporating the network into his platform. It did not endure long, unfortunately, because the community was divided on the proposal. SUSHI is now down 4%.
SushiSwap looks to be an excellent company when it comes to cryptos experiencing internal strife. With its 2.0 introduction receiving criticism, a token that had a lot of spring is suddenly in hot water. As a result, the SafeMoon token is facing a lot of pessimistic emotions.
The major SafeMoon 2.0 launch took place over the weekend. The event was supposed to be a significant motivator for the token, but it ended up bringing more negatives than positives. The upgrade, which reorganized the circulating quantity of tokens and created the basis for future upgrades, came ahead of an 11% drop today.
This appears to be linked to former Chief Business Officer Thomas Smith’s remarks made shortly after the 2.0 token’s debut. Smith joined the “SafeMoon After Dark” Twitter community and expressed his thoughts on the idea. He claimed that SafeMoon leader John Karony’s devices had been hacked, hinting that SafeMoon was not safe. Furthermore, he directly criticized SafeMoon 2.0’s current status, claiming that the enhanced protocol will never pass an audit.
Smith also spoke about the recent surge in SafeMoon team members, claiming that these individuals were either dismissed or left before they could be dismissed.
SafeMoon, on the other hand, includes an ICP-style price chart in addition to the SushiSwap-style internal drama. From late April, when the token reached an all-time high, it has been steadily declining. The token has lost approximately 90% of its value since its all-time peak.
Internet Computer (ICP-USD)
If one is holding Internet Computer’s ICP currency presently, the person is probably a big fan of the network’s technology. Alternatively, one may be keeping for the long haul and hoping for a favorable outcome. ICP has had a difficult time as a publicly-traded cryptocurrency for most of its existence. With the market indicating that another slump is on the way, now may be a good opportunity to sell and move your money away.
Internet Computers aspires to be the next big thing in blockchain, taking smart contracts and speeding them up to data speeds. It’s an appealing concept, but it hasn’t been demonstrated to be productive in garnering additional funding. It has only proven to be reliable when it comes to depreciating. ICP debuted in early May at a price of roughly $360, rising rapidly to almost $700, however, the coin has been on a fast and persistent downhill slide since the first week. It is currently trading at a little more than $25. That price was only $45 two months ago, demonstrating the steepness of the decrease.
Aside from the price problems, investors have a lot of complaints about the Dfinity Foundation, which is the organization behind Internet Computers. Many people claimed that Dfinity bungled the currency distribution at its debut. As a result, hard forks of the currency are blooming; of course, with new ways to invest in this technology through hard forks, there’s no reason to retain investment in ICP.
DISCLAIMER: The author of the blog did not have any explicit or implicit interests in the securities mentioned in this article as of the date of publication. The writer’s views are expressed in this article, which is subject to the Zumm.org Editorial Standards.