3 Cryptos to Sell Now Before They Crash

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The crypto market has entered a serious downturn following a record-breaking rally in 2021. This has resulted in massive selloffs, with the slump in crypto mostly attributed to ongoing geopolitical and macroeconomic concerns, along with interest rate hikes. Some analysts predict that there will be further pressure on the horizon for the crypto market, creating a situation in which there will be more more cryptos to sell than cryptos to buy in the coming months.

Of course, there are some key drivers for the massive declines of many higher-risk assets.

Rising interest rates have fueled concerns about a potential recession by the beginning of next year. As a result, higher-risk assets may continuer to be pressured in the coming months. Additionally, the strong U.S. dollar and the impending midterm elections may further undermine the crypto market. And many experts believe we are in the midst of a “crypto winter,” or a prolonged bear market, in the cryptocurrency space.

During a bull market, investors look to buy more risky asses in order to maximize their expected returns. So in 2020 and 2021, many investors flocked to cryptocurrencies as a way to bolster their returns.

This year, however, investors have, of course, become more defensive. As a result, they are looking to sell their cryptos, in order to rotate their capital from them into bonds and other lower-risk assets. For crypto owners looking to raise capital right now, here are three cryptos  to sell.

ApeCoin (APE-USD)

Since its launch in May 2022, ApeCoin (APE-USD) has experienced specific challenges. One of its biggest challenges has been that its price has constantly decreased.

Down nearly 90% from its all-time high that it reached in April, ApeCoin perhaps best exemplifies the hype of some cryptos. The  object of much fanfare due to its affiliation with  the Bored Ape Yacht Club (BAYC), one of the biggest NFT issuers in the crypto world, ApeCoin could easily have gone parabolic in a similar fashion to those ape photos.

The token did unleash a flurry of speculation. However, in this market, most speculative rallies die pretty quickly. And while APE still trades well above its $1 initial listing price, it can drop a great deal further during this crypto winter.

This project has some interesting potential, positive drivers that investors may want to consider. However, APE is now one of the most speculative cryptos. Thus, I would avoid it at all costs at this point.

The Sandbox (SAND-USD)

One crypto project that I’ve been bullish on in the past that I now think is worth putting on the cryptos to sell list is The Sandbox (SAND-USD).

There are a number of reasons for my change of heart.

Perhaps most obviously, the metaverse hasn’t turned out as expected. Investors don’t need to be geniuses to see what happened to the company formerly known as Facebook following its multi-billion-dollar, head-first plunge into the metaverse. We’re probably still early.

In the world of blockchain-based metaverse games, The Sandbox remains a leader. That said, there have been reports that its actual user metrics are quite weak across the board right now.

Unfortunately, like most high-growth cryptos, SAND tokens have tumbled recently.  And as long as speculative rallies in the crypto space continue to quickly terminate as they have lately, SAND can drop much further.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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