If you think the stock market has been "on fire" since the crash caused by the coronavirus hit rock bottom in March 2020, you should take a closer look at cryptocurrencies. The 14.883 digital currencies listed by CoinMarketCap.com have skyrocketed in their aggregate value over the past 20 months from $ 141 billion to $ 2,58 trillion.
While there are a small handful of cryptocurrency and blockchain projects that seem intriguing from a real-world perspective, the reality is that most of the crypto space is filled with advertised projects that won't lead to significant adoption. Being now in the last month of the year, let's see which is the main cryptocurrency to avoid in order not to end up like New Year's Eve.
Dogelon mars
One digital currency to avoid like the plague in December is the much touted Dogelon Mars (ELON) (pronounced "Dog-a-lon").
If you've never heard of Dogelon Mars before, don't feel guilty. As recently as early September, the cryptocurrency apparently named after Tesla Motors CEO (Tesla shares) Elon Musk had a market cap of $ 26 million and was trading at around $ 0,00000005 for ELON. But by October 30, Dogelon Mars had peaked at $ 1,43 billion in market value.
Most of this surge can be traced to two new listing announcements on October 29th. It was then that OKEx and Crypto.com listed fast growing ELON for online trading.
In theory, the more cryptocurrency exchanges ELON lists, the better the coin's liquidity and the faster the community will grow. It's no secret that fringe coins rely on social media buzz to drive engagement and attract new investors.
The problem with Dogelon and so many other coins is that their ambitious mission statements tend to be fluffy. Dogelon's “information” section describes it as “the first interplanetary currency” and a project that “undertakes to send tokens over time to victims of scams”. A "rug" or "rug pull" is an event in which developers of a cryptocurrency abandon their project and run away with investors' money.
This might sound intriguing ...
… But there is no need for an interplanetary currency right now. Furthermore, there is nothing to suggest that Dogelon offers a true differentiation between the nearly 14.900 different crypto projects listed on CoinMarketCap.com. It's simply another project in a long list of digital currencies being pumped up on social media.
As a reminder, Dogelon skyrocketed by more than 6.250% between April 22 and May 11 earlier this year, and subsequently lost 97% of its value about six weeks after the peak. Big gains based solely on social media buzz in the crypto space always prove fleeting, which is why Dogelon Mars should be avoided at all costs.
