Mark Tencaten - Three Cryptocurrencies to Avoid Investing

by Mark Tencaten Mark Tencaten - Co-Founder and owner at NGS Group

The year has been difficult for cryptocurrency investors. Bitcoin (BTC), the market leader, has lost nearly 70% of its value since its peak, while many other businesses have suffered even worse losses. The result is the same whether we refer to it as a bear market or a cryptocurrency winter: prices are declining, and it is unclear when they will begin to rise.

Many seasoned cryptocurrency users view these protracted price declines as a natural cycle and a chance to sort out the less viable enterprises. Even when you invest your hard-earned money in eliminated initiatives, it still hurts. By way of illustration, when certain cryptocurrency loan services failed, some users lost their whole life savings.

Mark Tencaten advises that if you purchase cryptocurrency, you should search for projects with utility, solid management, and a solid money-making strategy. They stand the best chance of long-term success.

The following cryptocurrencies, in comparison, look especially dangerous at the moment.

1.      Terra and Terra Classic

Mark Tencaten asks why invest in the smart contract cryptocurrencies linked to one of the worst flops in the history of cryptocurrency when so many other options are available. Developers are creating decentralized banking and other products on a variety of ecosystems, from the cryptocurrency giant Ethereum (ETH) to quick Solana (SOL) or flexible Avalanche (AVAX). Although each has its advantages and disadvantages, they all have a higher probability of surviving than the two Novas.

The blockchain split in two to create Terra and Terra Classic after Terra's catastrophic collapse. Both are trying to emerge from the ruins, but each has unique obstacles to overcome. To start with, Do Kwon, the co-founder of the Terra platform, is the subject of a South Korean arrest order. It's unclear how much he's involved in LUNA 2.0, although he came up with the idea for the restructuring. Even though the community controls Terra Classic, it continues to follow the same flawed business model.

2.      Shiba Inu

Shiba Inu, a well-known meme coin, gained popularity last year due to Dogecoin's (DOGE) success. Crypto's bad weather is not a good time to possess meme currencies, according to Mark Tencaten, who also outlines the issue with this cryptocurrency. Despite Shiba Inu becoming increasingly popular, there are still a few warning signs. First off, Ryoshi, the founder, left the initiative earlier this year in addition to being a pseudonym. Investors should find out who is behind a cryptocurrency before investing any money.

The vast quantity of SHIB tokens that are in existence today is the second problem. The initiative began with a quadrillion coins and instantly granted Vitalik Buterin, the creator of Ethereum, half of them. Buterin burnt some of the money and donated the remainder to charity since he dislikes receiving coins from unrelated ventures. However, there are still a large number of tokens left, and the only way the remaining coins will appreciate is if the community destroys a large number more.

Shiba Inu has made an effort to reverse-engineer a variety of things. It claims to be developing a layer two blockchain to enhance the token's Ethereum performance as its metaverse concept comes to fruition. However, despite all the declarations and catchphrases, little measurable progress has been made.

3.      Bitgert

Mark Tencaten says that many cryptocurrency publications propose Bitgert as a quick, affordable substitute for Ethereum. But there are several red flags with this endeavor. Not least of all, the website has no information on the creators. In fact, the team tweeted earlier this year about disclosing their names, only for the material to be removed after claims that it was false.

·        According to several websites, Bitgert invests 3% of transaction charges on advertising, which is a red flag in and of itself.

·        This blockchain claims to be quicker than Solana, but there is no information available regarding how it does on the white paper.

·        The only money that is locked on Bitgert's network is staked money, according to Defi Llama's tracking of the percentage of money locked on different blockchains. Therefore, none of the applications created using Bitgert have any financial backing.

Conclusion

The listed cryptos serve as an example of the various shapes that cryptocurrency toxicity can take. Before making an investment, Mark Tencaten advises doing more research on any project, especially those that aren't listed on reputable cryptocurrency exchanges. There are over 21,000 cryptocurrencies available, so you may be sure to locate a handful that isn't tarnished by scandal and actually serve a purpose.

We cannot predict with certainty that these cryptocurrencies will fail. Since this is a cryptocurrency, anything is possible. However, it is sensible to steer clear of projects that immediately raise evident warning lights because the stronger ones have the best long-term prospects for survival and performance.

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Created on Dec 25th 2022 07:07. Viewed 183 times.

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