Visa Cryptocurrency Partners

4 Cryptocurrencies to Avoid Like the Plague in 2022

3 Cryptocurrencies That'll Run Circles Around Shiba Inu in 2022
Written by publishing team

When 2021 officially came to an end, cryptocurrencies once again climbed to the top of the norm. After the start of the year with a total value of $774 billion, the total value of more than 16,000 cryptocurrencies reached nearly $2.2 trillion. This is nearly three times in value for the crypto market.

What is evident from this increase is that investors are excited about the financial and non-financial applications of blockchain, the potential future of the decentralized metaverse, and the transparency that blockchain technology brings to the table.

But when there are more than 16,000 digital currencies to choose from, there are bound to be mixed protesters. Although the following four cryptocurrencies were particularly popular last year, they fall into the category of pretense and should be avoided like the plague in 2022.

Avoid any Shiba Inu-inspired icons in 2022. Image source: Getty Images.

Shiba Inu

If there is one very simple topic that I can pass on to crypto investors in 2022, it is to avoid any coins that are based on the Shiba Inu dog breed or bear the name of Elon Musk. Topping the list of cryptocurrencies to avoid is like the plague Shiba Inu (CRYPTO: gray hair).

In the past year, Shiba Inu made historic gains. At one point, in late October, SHIB tokens surged 121,000,000% in less than a year. This means that a change in your pocket could have made people millionaires, if they had bought in the middle of the night of January 1, 2021.

Shiba Inu’s historical gains have been driven by an increase in emergence in the form of more exchanges accepting SHIB for trading, the launch of ShibaSwap, the downfall of a few brand-name traders, and fear of losing (FOMO). The latter is particularly important, as social media has played a role in pumping the valuations of all four cryptocurrencies on this list higher.

However, the Shiba Inu has three main drawbacks. The biggest problem is that it has no competitive advantages and does not offer any discrimination (social media pumping is not discrimination). It’s just an ERC-20 token built on Ethereum Blockchains that are subject to the same high transaction fees and processing delays that can affect the Ethereum network.

Second, it lacks realistic utility. Even with Shiba Inu among the 15 largest cryptocurrencies by market capitalization, it still doesn’t have 400 merchants willing to accept its token, according to data from the online business directory Cryptwerk. Without a competitive advantage or differentiation, there is simply no reason why companies would want to take SHIB as a payment.

And third, history shows that life-altering gains in the crypto space are offset by similarly epic reversals. This indicates that SHIB is heading towards the kennel in 2022.

An astronaut carrying a rock while on the surface of Mars.

Image source: Getty Images.

Dogillon March

I repeat: do not buy cryptocurrencies inspired by Shiba Inu or Elon Musk. for this reason Dogillon March (CRYPTO: ELON) (Pronounced “Dog-a-lon”) on the list of cryptocurrencies to avoid in 2022.

The first clue you might buy into a project with no real interest can be found in its mission statement. Although the Dogelon Mars homepage was recently revamped, it previously referred to Dogelon as the “first interplanetary coin”. The mission statement also referred to the project “Send[ing] Tokens over time for carpet and scam victims. “The rug” or “rug pull” describes an event in which cryptocurrency developers take investors’ money and disappear.

To start with the basics, there is absolutely no need for an interplanetary currency. No human has ever visited another planet, let alone colonized it to the point of needing coins. The fact that Dogillon Mars is described as an “interplanetary currency” is an insult to the intelligence of the investment community.

In addition, I can’t even find information on how many companies accept Dogelon Mars as a payment method. This is a good indication that this payment currency is not being used by many, if any, companies around the world. Outside of a few cryptocurrency exchanges, ELON tokens are not used in the real world.

Also let’s not overlook that Dogelon Mars has popped and shriveled before. In a three-week period last year (April 22 to May 11, 2021), ELON surged more than 6,200%, but lost 97% of its value in the subsequent six weeks. It is best to avoid these illiquid and social media tokens.

A Shiba Inu dog sitting on the grass and looking up at the sky.

Image source: Getty Images.

Floki Inoue

In case you’re skimming, I’ll say it again: Don’t buy Shiba Inus or Elon Musk inspired meme coins. This includes Floki Inoue (CRYPTO: FLOKI), which is named after Shiba Inu, the Floki adopted by Elon Musk.

Looks like the hype surrounding Floki Inu has slipped through. Although the FLOKI tokens seem to go up every time Tesla CEO Elon Musk tweeted about Shiba Inus, Musk has absolutely nothing to do with the project. Musk’s brother Kimbal Musk is being She’s involved with the Million Gardens movement, which is designed to tackle issues of world hunger – and FLOKI is part of that, too. But let’s be real here: Investors don’t pile on what Kimbal Musk or his tweets think.

Another issue with Floki Inu (and the other coins on this list) is its lack of real-world usefulness. The FLOKI white paper notes a partnership with CryptoCart, which allows FLOKI holders to spend their tokens at approximately 1,700 stores. The problem is that there are more than 500 million entrepreneurs globally, which means that 1,700 stores are just a fraction of the grand scheme of utility.

To build on this point, most companies are not willing to take FLOKI. Deals made by many of these cryptocurrencies allow third-party providers to exchange a single currency, such as FLOKI, for a currency that the company is willing to accept, such as US dollars, for a fee. No 1,700 companies worldwide have signs on their doors saying they will take Floki Inu as a form of payment.

There have also been concerns about Floki Inu’s aggressive advertising campaign in the UK. Regulations regarding encrypted advertising are constantly evolving, and Floki Inu could attract unwanted attention from UK lawmakers.

Long story short, it’s an easily avoidable symbol in 2022.

A clearly anxious person looks at a quick coding scheme and then drops down on a tablet.

Image source: Getty Images.

Dogecoin

The fourth and final cryptocurrency to avoid like the plague this year is Dogecoin (CRYPTO: DOGE). And yes, the developers of Dogecoin were inspired by the Shiba Inu dog breed. Stop buying Shiba Inu coins!

Unlike Floki Inu, Dogelon Mars, and Shiba Inu, all of which rip up Elon Musk’s embezzled tweets, Dogecoin has little connection to the world’s richest person. Elon Musk owns only three digital currencies, one of which is Dogecoin. He also previously tweeted that he is working with Dogecoin developers to improve the network. This gave Dogecoin just a hair more credibility in its rise to the top than the other three coins.

However, Dogecoin, like the other cryptocurrencies listed here, is completely devoid of competitive advantages or differentiation. While its transaction fees are lower than the fees Bitcoin And Ethereum, Dogecoin fees are also significantly higher than every other popular payment currency.

What’s more, the Dogecoin blockchain is not particularly fast, offers no astounding ability to scale, and in September saw the average number of transactions completed per day drop to its lowest level in three years (around 20,000 per day). Pay Giant Visa Capable of processing what Dogecoin transacts daily on the blockchain in just one second.

Furthermore, to stick with the topic, very few companies are willing to accept DOGE as payment. Cryptwerk lists less than 2,000 merchants worldwide as accepting it. Although that number is five times higher than SHIB’s, it’s an embarrassingly low number eight years after it debuted.

Dogecoins such as Shiba Inu, Dogelon Mars and Floki Inu are in danger of losing most of their value in 2022.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

About the author

publishing team