How to Build a Cryptocurrency out of Red Flags
On Friday, news spread that the popular Squid Game (CCC:SQUID-USD) token was unsellable on PancakeSwap. By Monday, the Binance token had dropped from $2,860 to less than a fraction of a cent.
“People’s portfolios gone [sic] green light to red light,” quipped one Reddit user.
Perhaps it was inevitable something would go wrong. The hype — fueled in no small part by breathless media coverage — ignored many of the glaring red flags of the project. Not only were the SQUID team’s profiles fake, so were borrowed quotes from Elon Musk and claims of a Netflix (NASDAQ:NFLX) affiliation. A three-year liquidity lock certainly didn’t help either.
By Monday, the Squid Game website had disappeared, along with roughly $3.4 million of investor money. Many will remember this as the largest honeypot scam to date.
Then again, with people shelling out thousands of dollars for tungsten cubes and monkey-themed NFTs these days, perhaps it isn’t so strange that SQUID fooled so many.
5 Cryptocurrencies That Will Beat Ethereum
Squid Game Token… SafeMoon (CCC:SAFEMOON-USD)… FEG (CCC:FEG-USD)… all of these tokens beat Ethereum (CCC:ETH-USD) at some point. But most owners eventually lost their shirts as these Spamcoins fell back to earth.
Meanwhile, my No. 1 crypto pick of 2021 has continued its upward climb. Though Ethereum hasn’t been the highest performer this year, it’s undoubtedly provided investors with the best risk-adjusted figures.
How then, to find five cryptocurrencies that will beat Ethereum?
The answer depends on how you define “beating” ETH.
If we’re only looking for raw returns, any five Momentum Master Spamcoins might give investors an advantage — even if only for a couple of days. But when looking for longer-term wins, we’ll have to find coins that are better than Ethereum in their given niche.
1. Better for Business: Hedera (HBAR)
The world’s No. 35 largest cryptocurrency might be unfamiliar to most investors — it doesn’t receive the glowing headlines of Ethereum nor the retail love of pup-coins.
But Hedera (CCC:HBAR-USD) has a secret weapon; institutional backing by two dozen heavyweight corporations. HBAR is owned and governed by a consortium of companies including Google (NASDAQ:GOOG, NASDAQ:GOOGL), IBM (NYSE:IBM) and Nomura Bank (NYSE:NMR).
The reason is simple. If a company wants a blockchain application (whether to secure data, financial transactions or anything else), they need a specially-built cryptocurrency that is both 1) widely used and 2) has the capability to encrypt large amounts of information.
That’s where Hedera comes in. Specifically designed with corporate use in mind, HBAR has the ability to store data and manage recordkeeping. Don’t be surprised if Hedera beats ETH in the business realm.
2. Even More Efficient: Solana (SOL)
Ethereum has always run into efficiency issues: blocks take 13 to 15 minutes to clear, and the average transaction fee now runs over $50. As far as day-to-day transactions go, ETH has become approximately as unusable as a 7,000-lb Micronesian stone coin.
That’s why upstart Solana (CCC:SOL-USD) has done so well. With the ability to perform 50,000 transactions per second and a 4-second block time, the cryptocurrency will still be more than three times faster than Ethereum’s “2.0” release in 2022.
Other trailblazers have already demonstrated the benefits of efficiency. Binance Coin (CCC:BNB-USD) is nipping at Ethereum’s heels after dominating the tokenized smart chain space. And stablecoin Tether (CCC:USDT-USD) sees three times more trading volume than Bitcoin (CCC:BTC-USD) thanks to its low costs.
Now it’s Solana’s turn to shine. The “Ethereum Killer” coin has already doubled since I first recommended it. And in a world where momentum matters, it could pay off to add a small amount of SOL to any crypto portfolio.
3. A Lot More Advanced: Internet Computer (ICP)
Internet Computer (CCC:ICP-USD) has been one of the rare disappointments out of the Moonshot Investor. Since September, the crypto has dropped 32% after failing to deliver on its promise of blockchain-powered cloud computing.
Development however, continues to move forward. Last week, developers at DFINITY reached a milestone of 25 blocks per second — a hundred times faster than Solana. And the team looks set to release Bitcoin smart contracts by the end of the year.
The ultimate goal — creating an all-purpose cloud computer — will take more time. Working with encrypted data across multiple nodes is a problem that won’t be solved overnight. But at $46 per coin, ICP is a value play likely to beat Ethereum thanks to its low valuation relative to its level of innovation.
4. Seriously Speculative: Shiba Inu (SHIB) and Floki Inu (FLOKI)
Last Wednesday, I urged Moonshot readers to take 50% profits out of Shiba Inu (CCC:SHIB-USD). The token had risen too quickly, and something just felt off. Indeed, Oct. 27 would mark Shiba Inu’s all-time high of 8.9 milli-cents. Prices have since declined by nearly 25%.
But taking 50% profits still means a reasonable amount invested. And that brings us to the two top speculative Moonshot plays of the year.
- Shiba Inu. The pup-themed token has become a defacto currency of the Ethereum chain. At $40 billion, it’s now worth more than Dogecoin and trades with twice the volume.
- Floki Inu (CCC:FLOKI-USD). The token named after Elon Musk’s pet Shiba counts Musk’s brother as a close collaborator. Kimbal Musk’s Million Gardens Movement is an official 1% partner of FLOKI.
These tokens don’t necessarily provide any utility beyond shifting fortunes from one party to another. But with market capitalizations a fraction of Ethereum’s, both SHIB and FLOKI have a good chance of beating ETH in the short term.
5. Frunking Fun: Dogecoin (DOGE)
Finally there’s Dogecoin (CCC:DOGE-USD), a cryptocurrency that seems to have a life of its own. That’s the reason I put the crypto on my “five-star” list in January (when prices were still in the pennies) and why I’m still a believer today.
In short, DOGE is a crypto that makes investing fun. People aren’t out to make greed-driven gains like those buying SHIBA or FLOKI (though profits are always welcome). And they’re not buying it because they believe it’s high quality either.
Instead, people buy Dogecoin for the joy of owning and trading a ridiculous asset (much like 4-inch tungsten cubes). 62% of Robinhood’s crypto revenues came from DOGE in Q2 and 40% in Q3.
In April, I urged nonbelievers to put $500 into Dogecoin as a fun crypto experiment into understanding the minds of Generation Reddit. Today, that message still rings true. Because whether Dogecoin is at $0.001… $0.12 or $0.30, it’s still the same beloved coin that so many people once fell in love with.
Read Next: The Hidden Gems of Crypto
I knew my new video, “The Next Bitcoins,” would generate some buzz.
But in all of the 50 years since I founded Weiss Ratings, I’ve never seen anything quite like this!
Phones are ringing off the hook. Emails, phone calls and text messages are pouring in from our readers.
They’re responding to our early-bird, backdoor method for buying the hidden gems of the crypto world for far less than nearly all other investors will probably pay.
I’m talking about paying 20 cents, 10 cents, even just one cent on the dollar.
Even experienced crypto investors are missing this opportunity.
In fact, based on everything I see, I’d say 99% of investors don’t even know this opportunity exists.
In this just-released video, I give you immediate access to the amazing world of these undiscovered cryptos.
They’re the present and future leaders of a new world of finance that has grown 100-fold just since 2020 …
And has the potential to grow another 400-fold in the months ahead.
It has already generated, by far, the greatest percentage gains of any sector of any economy on the planet right now.
Even while it’s still in its very early stages.
For the details, I suggest you see this right away.