5 altcoins you shouldn’t have in your wallet in 2023 investingoo

NEW DELHI (CoinChapter.com) — A crypto analyst has suggested a list of altcoins that could see a significant price drop in 2023, advising investors to reduce their exposure to the token.

Twitter-based crypto analyst Karl shared the list of altcoins in a Twitter post, along with the token’s current inflation rate.The main idea behind this is to short a basket of these inflation tokens against ETH or BTC‘ said Carl. Tweet.

We strongly believe this will be a big winning deal throughout 2023.

Karl claimed

Given the ongoing crypto bear market, inflationary tokens may find it difficult to survive the crypto winter. An increase in token supply will ultimately lead to a decline in asset prices without a simultaneous increase in demand.

Additionally, demand for cryptocurrencies declined after the market peaked in November 2021. The Terra debacle and his subsequent debacle of FTX has eroded the confidence of cryptocurrency investors. As a result, the number of new entrants to the market has decreased.

Here are some altcoins that investors should reduce their exposure to next year.

1. DYDX

DYDX is the in-house utility token of decentralized cryptocurrency margin trading exchange dYdX. With a total token supply of 1 billion, nearly 7% of it is currently in circulation. DYDX grants voting rights to token holders.

Additionally, investors use crypto tokens to pay transaction fees and earn staking yields.

Crypto Tokens are down over 85% YTD in 2022. Additionally, the price of DYDX has lost almost 96% of its value from the token’s all-time high of $29.4. According to Karl’s tweet, DYDX’s current inflation rate is 251.52% and the token may drop further.

Investors looking to buy tokens at bottom prices are advised to keep the token inflation rate in mind.

2.GMT

The Green Metaverse Token (GMT) is the native governance token of the Move-to-Earn platform STEPN. Users can rename their NFT sneakers and level them up using GMT tokens. Additionally, STEPN can distribute premium gaming content or high level activities and profits via GMT tokens.

After reaching ATH of $4.51 in April 2022, the GMT price is trending down almost permanently. However, the token remains 2,782% above its opening price of $0.01.

Also Read: US Don’t Jail Bankers but is After SBF

The current inflation rate of GMT tokens is 128.5%, which is only 10% of the total supply of 6 billion GMT tokens in circulation. As a result, GMT could face stronger bearish headwinds as traders start shorting the token.

3.SMEs

IMX, an Ethereum-based token, is the governance token of Immutable X, NFT’s Layer 2 scaling solution. The platform offers instant trade confirmation and low gas fees for issuing and trading NFTs. A user can also stake his IMX tokens.

Like most altcoins in 2022, IMX hasn’t had a very good year.The token is down nearly 91% YTD on Dec 23. Moreover, with an inflation rate of 72.58% and a circulating supply of 2 billion tokens of just 37%, IMX could continue its downward trend in 2023.

However, investors offloading tokens may consider NFTs to step into the crypto space, which could serve as a bullish signal for IMX tokens.

4.MC

MC is a Merit Circle governance token that allows holders to contribute to decision-making votes on the platform. Merit Circle is a DAO aimed at maximizing revenue across play-to-earn games and the metaverse.

Also Read: No Love! Sam Bankman-Fried’s Girlfriend Caroline Ellison Turns Key Witness in FTX Saga

MC DAO manages capital allocation between managers and players. The platform also offers scholarship and educational opportunities for budding gamers.

MC’s price has lost nearly 94% of its value in 2022 since listing on Gemini on December 21, 2021.

Increased token supply due to 63% inflation could push MC price further down.

5. Ape

ApeCoin (APE) is the ERC-20 governance token of the ApeCoin DAO. Organizations make decisions such as ecosystem fund allocations, governance rules, and projects. Yuga Labs, the company behind the NFT series Bored Ape Yacht Club (BAYC), has adopted his APE as the primary token to use in the projects it conducts.

APE launched on Binance in March of this year, reaching $40.9 ATH on the same day. Since then, APE’s price action has been downhill, with the token losing more than 91% of its value and on December 23rd, he fell to a low of $3.57.

The token has a market cap of $1.28 billion and an inflation rate of 60%. APE has a total of 1 billion tokens, of which 36% are currently in circulation.

Posted 5 altcoins you shouldn’t have in your wallet in 2023 first appeared in CoinChapter.

Related