Türkçe
Español
Crypto currency trading, particularly altcoin trading, is largely risky due to its experimental nature and the high volatility in the crypto currency market. Knowing which altcoins to avoid trading is part of a good risk management strategy to improve outcomes. In this context, fundamental indicators can provide valuable information and warning signs in the short or long term. The Relative Strength Index (RSI), structural changes, supply inflation, unlocking of token locks, and demand forecasts are among these. We have compiled three altcoins that you should avoid in the short term, along with their reasons.
Avoid BUSD Due to Uncertainty
In February 2023, the New York Department of Financial Services ordered Paxos to stop issuing the stablecoin Binance USD (BUSD). This decision followed a lawsuit filed against Paxos’s issuing partner, the major cryptocurrency exchange Binance. By November, Binance published a blog post assuring that BUSD could be fully redeemed at least until February 2024, but what happens after this month remains uncertain.
The ability to exchange Binance’s stablecoin for US dollars smoothly after February is uncertain. Due to this uncertainty, investors should avoid BUSD.
Injective (INJ) May Remain Under Strong Selling Pressure
Injective (INJ) team will receive over $125 million worth of INJ upon the unlocking of the vesting period this weekend. The total amount to be released is over $135 million, and as a result, substantial sales could be seen in INJ in the coming week. Therefore, investors need to be cautious with this altcoin for a while.
TokenUnlocks, a platform that tracks token unlock events, also issued a warning about this development for INJ on January 16.
High Supply Inflation Risk in Kaspa (KAS)
The last altcoin to avoid in the short term is the relatively new altcoin Kaspa (KAS), which has recently shown impressive price performance. KAS rose from $0.000170 in May 2022 to an all-time high of $0.155 in November 2023. This price movement rewarded the project’s early investors with gains of over 20,500% in 15 years, and it is currently trading around $0.10.
However, Kaspa has seen a supply inflation of 163% since June 2022, from the 8.5 billion KAS reported to be in circulation. According to CoinMarketCap, the network’s current circulating supply is 22.37 billion KAS, and the recent supply inflation has not yet been fully priced in. This situation makes KAS one of the altcoins to avoid.
