2 Cryptos to Avoid No Matter What
Despite the current slump in the market, cryptocurrency has been one of the best-performing asset classes ever -- returning over 550% over the last five years compared to the S&P 500's measly 45%. But that doesn't mean every digital coin is a good bet. Let's discuss why an investment in Terra Classic (CRYPTO: LUNC) or Shiba Inu (CRYPTO: SHIB) could torpedo your portfolio.
If Terra Classic sounds familiar, that's because it's the new name for the Terra stablecoin platform, which collapsed spectacularly earlier this year. While the asset is trying to reinvent itself after the crisis, investors shouldn't take the bait. With a shattered reputation and its founder under intense regulatory scrutiny, Terra's future looks as grim as its past.
Founded in 2018, Terra/Luna (the predecessor of Terra Classic) was a stablecoin platform that used complex algorithms to maintain pegs to real-world currencies. In May, one of its stablecoins, TerraUSD, lost its peg to the U.S. dollar, leading the platform's value to tumble from $60 billion to $1.9 billion at the time of writing.
Source Fool.com
