Analyzing 8 Tokens That May "Fail" from the Perspective of Narrative and Valuation

Original source: ardizor X account

Author: ardizor, crypto researcher

Compiled by: Felix, PANews

Before purchasing any tokens, wise investors should at least analyze the following key factors:

• Market Capitalization (MC)
• Fully Diluted Valuation (FDV)
• Future Unlocking Events
• Token Demand
• Narrative

Such analysis will help determine whether a token is worth holding and whether it has potential for appreciation. However, 98% of altcoins are destined to fail because they have no potential at all. For example, if you invested $10,000 in AXS in November 2021, you would only have $382.5 left today.

Moreover, as shown in the chart below, only TON, SOL, Memes, and BTC have shown significant growth over the past 90 days. 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.

• Outdated and Overvalued Projects

These projects typically lack technology as they are entirely fictional. Over time, their value will gradually decrease compared to ETH, as we see now.

• Projects Related to Past Narratives

Typical characteristics include high FDV, low market cap, and ongoing selling pressure. These tokens have lost narrative relevance and are gradually fading away.

• Overpriced Tokens

The supply of these tokens is tightly controlled by teams or venture capitalists, leading to manipulated valuations.

Based on the above three types, crypto researcher ardizor has listed 8 tokens that are destined to "fail."

PANews Note: This article aims to provide market information and does not constitute investment advice. DYOR.

XMR

You may all know about Monero's (XMR) anonymity and transaction privacy.

XMR is one of the oldest crypto tokens. However, since 2022, the price of XMR has not changed much, and it may face bans in the future like Tornado Cash.

Most importantly, Binance delisted it this year, which may be the "last straw that broke the camel's back."

Short-term overvaluation, bleak prospects, and high risk.

FLOW

Flow is a proof-of-stake blockchain designed to be the foundation of 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, leading to a decline in its value.

This is due to ongoing selling pressure from venture capital and a decrease in hype surrounding NFTs.

XRP

XRP is designed for fast and low-cost global transactions. However, it is an unnecessary fork of BTC and is overvalued.

XRP has a group of fervent followers, but developer Charles Hoskinson is also quite eccentric, and the author feels he has "split personality."

AXS

The points listed here apply not only to Axie Infinity but also to other veteran P2E tokens like SAND and MANA.

Market excitement around them has faded, and the FDV is quite high.

The hype surrounding these tokens has disappeared, and price recovery seems unlikely.

DYDX

DYDX's key challenge lies in token unlocking.

The design of these unlocking mechanisms aims to stabilize selling pressure but has led to a continuous price decline.

Many projects face this issue, so if a project wants to survive, reviewing the unlocking schedule is crucial.

WLD

WLD is essentially a fictional token, with its supply strictly controlled by major participants and insiders who are always selling tokens. The odds are not in favor of retail investors.

BCH

Bitcoin Cash (BCH) is a fork of BTC aimed at increasing block size and processing more transactions simultaneously.

However, BCH is essentially similar to Bitcoin, with no significant changes. Basically, it's just a fake Bitcoin. Why do we need a fake Bitcoin? There hasn't been a truly smart person supporting it. XRP is not the worst token, but ETH or BTC is better.

ADA

ADA is similar to XRP but has no legal issues.

ADA has a crazy community that will hold onto their tokens even if the price drops to $0.0000001.