8 Tokens That Might Fail: A Review from the Perspective of Narrative and Valuation
TechFlow Selected TechFlow Selected
8 Tokens That Might Fail: A Review from the Perspective of Narrative and Valuation
including XMR, FLOE, XRP, ADA, AXS, DYDX, WLD, BCH.
Navigating Web3 tides with focused insightsAuthor: ardizor, crypto researcher
Translation: Felix, PANews
Before purchasing any token, a prudent investor should at least analyze the following key factors:
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Market Cap (MC)
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FDV
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Future unlock schedules
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Token demand
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Narrative
Such analysis helps determine whether a token is worth holding and has potential for appreciation. However, 98% of altcoins are destined to fail because they simply lack any real potential. For example, if you had invested $10,000 in AXS in November 2021, today it would be worth only $382.50.
Moreover, as shown in the chart below, within the past 90 days only TON, SOL, Memes, and BTC have demonstrated significant growth. All other so-called "high-tech" altcoins have declined.
If you don’t want to see your money disappear over time, you should avoid holding the following three types of altcoins.
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Outdated and overvalued projects
These projects typically lack technology and are essentially fabricated. Over time, their value relative to ETH continues to decline, as we are now witnessing.
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Projects tied to outdated narratives
Typically characterized by high FDV, low market cap, and continuous selling pressure. These tokens have lost narrative relevance and are gradually fading away.
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Overpriced tokens
These tokens have supply tightly controlled by teams or VCs, leading to manipulated valuations.
Based on these three categories, crypto researcher ardizor highlights eight tokens that are destined to "fail."
PANews note: This article is intended to provide market information only and does not constitute investment advice. Always do your own research (DYOR).
XMR
You probably know about Monero’s anonymity and transaction privacy features.
XMR is one of the oldest crypto tokens. However, since 2022, XMR's price has seen little movement and may face a ban similar to Tornado Cash in the future.
Most importantly, Binance delisted it this year—perhaps the final straw.
Overvalued in the short term, bleak outlook, high risk.
FLOW
Flow is a proof-of-stake blockchain designed to serve as the foundation for Web3 and the open metaverse, supporting consumer-scale decentralized applications, NFTs, DeFi, DAOs, PFP projects, and more.
Unfortunately, market interest in the project has waned, causing its value to decline.
This is due to continuous selling pressure from VCs and reduced hype around NFTs.
XRP
XRP was designed for fast and low-cost global transactions. However, it is an unnecessary fork of BTC and is overvalued.
XRP has a fanatical following, but even its developer Charles Hoskinson is quite eccentric—the author thinks he might have "schizophrenia."
AXS
This applies not only to Axie Infinity but also to other veteran P2E tokens like SAND and MANA.
Market excitement has faded, and the FDV remains quite high.
Hype around these tokens has disappeared, and price recovery appears hopeless.
DYDX
The key challenge for DYDX lies in token unlocks.
Although these unlock mechanisms are designed to stabilize selling pressure, they have led to persistent price declines.
Many projects face this issue, so reviewing unlock schedules is critical for long-term survival.
WLD
WLD is essentially a fabricated token whose supply is tightly managed by major players and insiders who constantly dump their holdings. The odds are clearly not in retail investors' favor.
BCH
Bitcoin Cash (BCH) is a fork of BTC aimed at increasing block size to handle more transactions simultaneously.
However, BCH is essentially similar to Bitcoin with no major improvements. Basically, it's just a fake Bitcoin. Why would anyone need a fake Bitcoin? I haven't seen a single truly smart person supporting it. XRP isn't the worst token, but ETH or BTC are better.
ADA
ADA is similar to XRP, except without any legal disputes.
ADA has a fanatically loyal community that will hold onto their tokens no matter what—even if the price drops to $0.0000001.
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