In the vast cryptocurrency market, not all assets present equally favorable investment opportunities. It is crucial to exercise caution and avoid trading certain cryptocurrencies, at least for the time being. By considering factors such as cryptocurrency ratings, price history, and recent developments, we will mention 2 cryptos to avoid during the week starting May 22.
Cryptos to Avoid: Filecoin (FIL)
Filecoin (FIL), a peer-to-peer file storage network, faces challenges in terms of adoption and technological development, earning it a “very weak” (‘E+’) score. Furthermore, the recent designation of Filecoin as a “security” by the United States Securities and Exchange Commission (SEC) has further exacerbated its position.
Despite the Filecoin Foundation’s strong disagreement with the SEC’s classification, the price of FIL has continued to decline, with a loss exceeding 23.07% in the last month. Currently, FIL is valued at $4.52.
Cryptos to Avoid: Kusama (KSM)
Kusama (KSM) has frequently found itself on the “avoid for now” lists. While it has shown some improvement in adoption and technological development compared to April, it still lags significantly in these areas. Weiss Crypto Ratings currently assigns Kusama an ‘E’ grade, indicating its weakness as of May 19.
Although Kusama’s price has experienced a modest 3.33% increase in the last seven days, its pre-production blockchain version within the Polkadot (DOT) ecosystem has been on a downward trajectory. This decline has resulted in a monthly loss of approximately 26%, leading to a ‘D’ grade (“weak”) for its market performance. Currently, Kusama trades at a price of $26.12.
While the aforementioned cryptocurrencies may not be performing well at the moment, it is important to remember that this sector can be full of surprises. Positive developments or announcements could potentially lead to a surprising comeback for these digital currencies. However, for the upcoming week, it is advisable to exercise caution and avoid trading them.