Warning for altcoin season: 5 types of cryptocurrencies to avoid this cycle Here are 5 types of cryptocurrencies to avoid if you want to protect your portfolio during this altcoin season. 1️⃣ Dead hype coins These are projects that had huge pumps in previous bull runs but have failed to achieve any real development, adoption, or updates since then. Examples: coins from the 2017 Initial Coin Offering (ICO) wave, or meme coins that had a brief trend in 2021 but currently have no active community. 🔍 Warning signs: • No active updates on GitHub or developers • Abandoned social media accounts • Not mentioned in current narratives (AI, deep learning algorithms, L2s, etc.) 2️⃣ Low liquidity meme coins without utility Not all meme coins are bad - some like $DOGE or $PEPE have strong communities. But beware of new meme tokens that have: • Small liquidity pools • No trading listings • No roadmap or utility • Anonymous developers who disappear after launch 💥 This is the easiest way to get "rug-pulled". 3️⃣ High FD tokens without a product.
Retail investors often ignore fully diluted valuation (FDV), but it is important.
The market cap of the token may be low, but if a massive supply is released over time, it is likely to plummet sharply.
📉 Avoid projects that:
• FDV exceeds one billion dollars but has no effective product.
• Tokens are launching soon.
• Venture capital firms have acquired the market at prices ten times lower than retail prices.
4️⃣ Copy-and-paste projects
Some projects simply copy the codes of successful platforms and slightly rebrand themselves. They offer no innovation and exist only to exploit media hype.
👎 Rarely survive long-term, and investors quickly move to new projects.
5️⃣ "AI", "Web 3", or "Metaverse" coins that only use buzzwords.
During altcoin seasons, many coins add trendy words to their websites to attract capital driven by fear of missing out, but they offer no real connection to these sectors.
Avoid them if:
• The website looks rushed or generic.
• The team is anonymous and has no LinkedIn account.
• All updates are just baseless marketing nonsense.
