Dumber than Dogecoin: 3 Meme Tokens to Sell Before They Plunge

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Muslim Farooque

Mon, Jun 10, 2024, 5:20 AM 4 min read

With the crypto bull market heating up, it’s probably the right time to think about meme tokens to sell. Bitcoin (BTC-USD) surged past the $71,000 mark recently, and with the interest rate cuts coming up, expect even bigger gains ahead in the crypto space. Moreover, we’re likely to see new meme tokens fuel fresh engagement, making it easy for investors to get swayed by the hype.

Some may also feel that they could spot the next Dogecoin (DOGE-USD) early in the price. Wherever this discussion goes through, the excitement surrounding meme tokens will likely lead to decisions you’re likely to regret over the long term.

The increase in capital flowing into speculative risk assets is tough to pass up though. However, this momentum can easily swing both ways, making it imperative to exercise caution. Hence, given the current macroeconomic backdrop, it’s important to be circumspect and dump these three meme tokens to sell to protect your portfolio from potential pitfalls.

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ApeCoin (APE)

A smartphone with the Apecoin logo on top of money.

Source: mundissima / Shutterstock.com

The Bored Ape Yacht Club (BAYC) is the most popular NFT collection, and in pouncing on the meme culture wave, it launched the ApeCoin (APE-USD) token. Perhaps the primary catalyst behind the release was to enhance its ecosystem and empower token holders with decision-making capabilities. Though it saw strong price action early on, the slowdown in the NFT market has hampered ApeCoin’s growth trajectory.

The NFT market is facing multiple challenges, which has led to a sharp drop in sales volumes recently. In May, sales volumes tanked 54% on a sequential basis to $624 million. Consequently, top collections such as BAYC have also witnessed a sharp pullback. BAYC prices are down over 80% from their peak of 120 ETH, currently trading in the $11 to $13 range.

Hence, with the excitement around NFTs waning, it’s tough to wager on an unattractive bet such as ApeCoin. The token’s future is heavily linked to speculative swings in the crypto market while offering virtually nothing in real-world utility.

Bonk (BONK)

Source: Rebeca V.S / Shutterstock.com

Bonk (BONK-USD) surfaced following the FTX crash, capturing the attention of Solana (SOL-USD) investors with an airdrop of 50% of its token supply in 2022. Its early ties as a “meme-layer” coin to Solana generated plenty of excitement. However, this reliance on Solana highlights its speculative nature, offering little to no upside potential ahead.

Though the brains behind Bonk have looked to expand its utility, currently, it serves as merely a tool for speculative trading and boosting community interaction. Its price swings are mostly linked to social media buzz rather than its fundamentals.

Moreover, in a hotly competitive meme coin space, it’s tough to see Bonk offering any distinguishing qualities for investors. There are a ton of other meme tokens which investors can scoop up which are surprisingly less volatile than Bonk. Savvy investors are unlikely to get swayed by the double-digit gains it posted in the past couple of months.

DogWifHat (WIF)

Illustration of Shiba Inu dog wearing sideways cap in front of pinkish red background, symbolizing meme stocks, meme tokens and pupcoins

Source: shutterstock.com/Vectordidak

DogWifHat (WIF-USD) has emerged as a top meme coin that’s been soaring following the meme stock wave. Its incredible increase from 22 cents to a whopping $4.85 between February and March underscores its speculative nature and lack of long-term value. Its peak performance is second to none, but doesn’t take away from its low-quality investment proposition.

The meme culture and robust community engagement took Dogwifhat to new heights, but following the cool-off in the broader meme coin market, WIF is back in the doldrums. Some experts will have felt that its decentralized governance approach and its ability to leverage the popularity of the Shiba Inu mascot would help sustain interest.

However, with no significant utility and the volatility in the crypto space, WIF is in for a topsy-turvy future. Regulatory uncertainties and its speculative nature challenge its long-term sustainability in the fast-evolving crypto landscape.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.