After barely surviving the 2022/2023 crypto bear market, it is prudent for every investor to position their portfolio properly or risk holding non-performing digital assets. As of this report, there are more than 12,500 crypto assets, excluding stablecoins.
Consequently, the chances of getting involved with non-performing crypto assets are much higher than in the 2013, 2017, and 2021 bull cycles. However, there is a formula to thoroughly scrutinize the altcoin market in search of the projects likely to underperform in this bull cycle.
Lark Davis on Altcoins to Stay Away From this Cycle
According to a popular crypto evangelist who has been around the industry for several bull cycles, Lark Davis, investors seeking to monetize their capital in the altcoin space should be wary of projects that have a similar characteristic to Litecoin (LTC). Yes, the legendary Litecoin has a high potential of underperforming in this crypto bull cycle after failing to deliver during the previous one despite having more than 8.6 million holders. According to Davis, projects like Litecoin will not necessarily die in the long haul but will continue to underperform due to lack of market traction, thus referred to as zombie coins.
Despite having the necessary liquidity, projects like Litecoin will likely underperform due to poor management, low network developments, and high competition from new shiny altcoins. Interestingly, Davis is confident some meme coins are zombie coins total of angry investors trapped by the bear market losses. Other altcoins that are likely to fall in the zombie class include Bitcoin Cash (BCH), Monero (XMR), and Zcash (ZEC).