While the cryptocurrency market is inherently risky, some cryptocurrencies bear the brunt of it most. For instance, hacks and negative perceptions have disproportionately hit DeFi and exchange tokens.
These are issues that have seen money flow away from Nexo (NEXO) and Kucoin Token (KCS). Nexo (NEXO) and other DeFi cryptocurrencies are affected by growing fear that a single hack could see crypto collapsing in value.
As for Kucoin Token (KCS), the collapse of FTX and tighter regulations have led investors to perceive exchange tokens as risky and with low return potential.
While Kucoin Token (KCS) and Nexo (NEXO) bear the brunt of risk, money flows into cryptos that investors consider low-risk, high-return. One crypto that is drawing a lot of investor interest is Sparklo (SPRK).
Nexo (NEXO) Price Growth Stalls As DeFi Hacks Increase Risk
Nexo (NEXO) was a big hit with investors when DeFi was still hot. However, things have changed as DeFi cryptocurrencies get hacked more frequently. Since prices hardly ever recover, investors increasingly avoid Nexo (NEXO) and other DeFi cryptocurrencies.
However, this is not the only reason analysts don’t see much growth potential for Nexo (NEXO). There is also the fact that Nexo (NEXO) is a large-cap cryptocurrency already.
It is trading at far much higher than the price it was trading at when it first entered the market. For this reason, Nexo (NEXO)’s prospects for exponential gains are pretty low.
At the same time, Nexo (NEXO)’s core use case is not unique enough to counteract the risks. For instance, the idea of crypto-backed loans is not uncommon, and many cryptos do it better than Nexo (NEXO).
Therefore, it is unsurprising that investors are moving away into newer cryptocurrencies with a positive investor perception, such as Sparklo (SPRK).
Kucoin Token (KCS) Bearish Outlook As Exchange Tokens Fall Out Of Favor
Kucoin Token (KCS) drew lots of investor interest a while back. Owning Kucoin Token (KCS) and other exchange tokens felt like owning shares in a growth company.
However, the sudden collapse of FTX and the follow-up regulatory issues have made investors rethink. Today, Kucoin Token (KCS) and similar tokens struggle to get interested investors.
It is even worse for Kucoin Token (KCS) because it is a smaller exchange than Binance. This means investors have a higher fear about holding Kucoin Token (KCS) tokens long term.
That’s why analysts believe money will continue flowing from Kucoin Token (KCS) and other exchange tokens into high-potential new market entrants like Sparklo (SPRK).
Sparklo Gains As Investors Exit Risky Large-Cap Cryptocurrencies
Sparklo (SPRK) continues to gather upside momentum as investors exit high-risk cryptos while seeking parabolic gains.
Analysts believe Sparklo (SPRK) will continue attracting much investor attention. That’s because, Sparklo (SPRK)’s use case is compelling, even to a casual investor.
Sparklo (SPRK) wants to change gold, silver, and platinum investing by making them accessible. With Sparklo (SPRK), investors can buy tiny fractions of these metals as NFTs.
Analysts are also bullish on Sparklo (SPRK) because its presale price is relatively low, at only $0.015. Analysts also believe Sparklo (SPRK) will continue attracting investors because it inspires trust.
InterFi Network fully audits Sparklo (SPRK) smart contracts, and there is also a KYC audit. This level of transparency is rare and could see Sparklo (SPRK) make it to the top 100 by market cap.
Buy Presale: https://invest.sparklo.finance
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