Three Crashing Cryptocurrencies To Avoid In 2023

Don’t be fooled by popularity. Here are three cryptocurrencies to avoid in 2023.

Last Updated January 5th 2023

5 Min Read

Without a doubt, 2022 has been a hard year for cryptocurrencies. Various currencies declined significantly, causing unprecedented losses. The decline of many of these digital assets is likely to continue in 2023. However, this is not true for all altcoins.

Various popular blockchain projects and cryptocurrencies are grossly overvalued and quite worthless outside of the crypto world. Although some of these cryptocurrencies are exceptionally popular with investors, experts believe they are not likely to experience much growth in the following years.

So go on and learn about the three cryptocurrencies to avoid in 2023.

Shiba Inu (SHIB)
Dogecoin (DOGE)
EOS (EOS)

1. Shiba Inu (SHIB)

Thinking of buying Shiba Inu? Here’s what you need to know before investing in it.

Shiba Inu rose several hundred thousand percent since it got a foothold in late January 2021. The mind-boggling gains of Shiba Inu are enough to give any investor a case of FOMO (fear of missing out). But before buying into the hype, investors should understand the pros and cons of investing in Shiba Inu.

Recently, the SHIB community has celebrated 1 million holders, creating a stir in the crypto market. Even though the ‘Dogecoin killer’ has a substantial amount of attention from the crypto community, there is a lot of controversy about its existence and what it would achieve in the future. Most of these controversies revolve around its value as a long-term investment.

Shiba Inu undoubtedly made waves in the crypto space in 2021. However, the coin comes after another meme coin, Dogecoin. Even though SHIB was able to overthrow DOGE from its throne, the victory was short-lived.

Unlike Bitcoin and Ether, SHIB has virtually no use for investors outside of a cryptocurrency market. According to surveys, approximately 100 global vendors accept Shiba Inu as a payment method. There is also nothing distinct about SHIB’s transaction fees, speed, or structure to make it more useful than other digital assets.

SHIB is known for its notable but sudden bull runs. The token's price rallies also bring along extreme volatility. Investors looking to invest in the SHIB token for an adrenaline rush must also accept that its potential to fall as hard as it skyrocketed is also part of the deal.

So, if the market speculators and momentum investors pull out of the market, the crypto could come crashing hard. Shiba Inu has generated whopping returns in the past and surprised its investors. That said, it is by no means a sure or safe investment. If you want to invest in a digital asset-asset long term, consider not buying SHIB in 2023.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Dogecoin (DOGE)

Media popularity does not really save Doge from being one of the most volatile crypto-assets there is.

Dogecoin is one of the most lucrative cryptocurrencies present in the crypto market currently. It was founded in 2013 by Billy Marker and Jackson Palmer. Its creation was funny since it was formed as a part of a joke from a meme that featured the Japanese dog breed Shiba Inu. DOGE later gained popularity and started having real value to crypto traders as an investment.

However, Dogecoin has emerged as a highly volatile, unstable asset in 2021. Holders of Doge are generally enamored with the idea of billionaires Elon Musk and Mark Cuban displaying their support behind Dogecoin. However, it is important to remember that Dogecoin brings no competitive advantages to the table. The coin has various limitations are investors and experts are beginning to see.

Firstly, the lack of a supply cap is one of the biggest disadvantages of Dogecoin. Digital assets with no supply cap are unideal assets to hedge against inflation. Furthermore, DOGE’s infinite mining will eventually require more expansive blockchain mining activities. And since it uses the proof-of-work mechanism, it will further expand its pool of miners and the number of computers to support the ever-growing increase in transactions.

Dogecoin has relatively poor technical support despite its growing community of users and supporters. DOGE’s development team is not as big as Bitcoin, Ethereum, and Cardano. The coin has not seen any technological updates since 2015. It is also important to highlight that it does not offer any unique selling proposition in terms of technology.

Unlike other currencies such as Bitcoin and Ether, which function as a transactional currency, Dogecoin can only be used as a digital currency. Cryptos like Bitcoin, Litecoin, and Bitcoin Cash have more transactional significance in the market than DOGE.

Despite its achievements, Dogecoin has remained a speculative asset. Investors are advised to test the waters before investing in currencies like Dogecoin.

3. EOS

Consider avoiding investing in EOS in 2023 for these reasons.

EOS is a next-generation blockchain ecosystem that has received heavy media coverage for its record-breaking ICO and unique characteristics. Block.one is the company behind this popular cryptocurrency.

This renowned cryptocurrency has been at the heart of various controversies. On 30th September 2019, the United States Securities and Exchange Commission announced settled charges to the tune of $24 million against EOS’s parent company for conducting an initial coin offering (ICO) of digital tokens that were unregistered.

According to the Securities and Exchange Commission, “Block.one did not register its ICO as securities offering pursuant to the federal securities laws, nor did it qualify for or seek an exemption from the registration requirements.” This did not bode well for EOS.

The protocol deploys the delegated proof-of-stake (DPOS) mechanism. Essentially, this means that some individuals can make decisions about the upgrades and verification of transactions. For this reason, EOS is one of the few blockchain technologies which are a bit centralized in a decentralized market.

This does not look good for the protocol's integrity as a decentralized blockchain and its cryptocurrency as a decentralized finance utility token. While a crypto crackdown could take all digital assets down, EOS may be one of the few to head down early due to question marks around the future of the cryptocurrency.

Hence, investors looking to build a long-term crypto portfolio should consider avoiding EOS in 2023.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Bottom Line

The past year has been an excellent one for the cryptocurrency market. With more than 13,000 digital assets available in the market, investors must steer clear of crypto scams, pump and dump projects, volatile tokens, etc. However, it is not always easy to gauge these factors.

Based on various considerations, investors are advised to avoid investing in SHIB, DOGE, and EOS in 2023.

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