How optimistic should we be about the cryptocurrency market in 2023?
We’ve all been wondering this after enduring some particularly brutal hits—some of them a full two feet above the ground—for what should amount to the whole of 2022.
However, nothing indicates that 2023 will be a prosperous year. Even if it will be almost a year before the next Bitcoin line is reached, the macro scenario is not chaotic. The second year may hold many surprises. To be sure, tomorrow will not be spent doing x100s. That’s why, rather than focusing on five cryptocurrencies to purchase in 2023, we’ll take a look at five cryptocurrencies to avoid.
1. Ape Coin
Bored Yacht Club’s communal cryptocurrency is called Ape Coin, and its value has plummeted by more than 95% since 2022 when monkeys were all the rage in social media profile images. The Ape was developed by Yuga Labs, a corporation shrouded in mystery because of rumors of illicitly paying celebrities to publicly exhibit their NFT, among other things.
Finally, the Ape is primarily designed for individuals using NFTs to facilitate the accrual of prizes. In March of 2023, tokens held by private shareholders will be made available. There is still 60% of the supply that is secured, and the squad has over 21%. Token supply is capped at 200,000,000 at an inflation rate of around 60%. This is not the best moment to acquire this token.
In addition to the numerous hacks, it routinely consumes itself; the FTX incident that drove Solana’s price from $250 at its all-time high to less than $10 presently is a currency that is eroding investor trust. There will be a lot of attention on the Token, which might lead to price fluctuations or even a rise for the Token on its own.
Further, things are handled differently here than in the Ape case. In light of the present rumors around the lone, I choose not to invest in it. It’s just as likely to drop to $5 as it is to rise to $15; therefore, if I want to gamble with a wide range of possible outcomes, I’ll play roulette instead.
What determines a Token’s value, regardless of the underlying technology, is consumer interest. Thus, it is undesirable for a Token to have high demand but rapid supply growth. Inflation is beneficial for the expansion of a country’s resources but harmful to the value of its possessions. Inflation is good for an ecosystem’s development since it will entice programmers to join, a nuanced point that to a handful of people seem to understand. However, in the near future, the value of one’s possessions will decline.
A Token with annual inflation of 20% is unattractive to me as an investor, and the range from 15% to 20% is already pretty tight.
Even by current standards, the rate of token inflation remains quite high. Until October of 2024, we will remain between 20% and 24%. This is a significant amount. There has been a huge amount of dilution, and the issue is that some of the pricing is still being propped up by males who purchased Tokens in the 2019 private transactions.
I can guarantee that anyone that paid $ 0.50 for AVAX will have a good time with it once it has been enabled. The section set aside for interns and, in my opinion, large Teams has had a significant Investing over 10 years, but this must be taken into account. Avalanche’s advertising, which emphasizes its status as an “Ethereum Killer,” is the primary cause of my skepticism.