As always, the crypto space is a frenzy of speculation, with the promises of moonshots galore. It’s a month that some experts believe will mark the breakout for penny cryptos. They’re counting on these low-coins to pump, driven by a stabilizing Bitcoin and the return of the altcoin market. While the allure of turning a few dollars into a fortune is undeniably tempting, I believe a dose of skepticism is absolutely crucial.

Let's be clear: the vast majority of penny cryptos will not explode. Some will fizzle, others will fade, and eventually all will disappear, leaving investors only their own regret. The odds of choosing that one diamond in the rough are astronomically low. It’s akin to predicting which grain of sand will tip the balance for an avalanche.

The hype surrounding AI is undeniable. It’s overflowing into the distributed finance universe as well. One of those highlighted coins is Dawgz AI, bridging the gap between AI and the meme coin culture. Sure… is it even useful? Is there a tangible problem it solves? Or is it just doing upcoming AI/meme trends to get buzz? I’m instantly suspicious of projects that appear to favor hollow gimmicks instead of meaningful work. As this article illustrates, 1000x returns are possible. That incredible outcome depends on an improbable trifecta of exceptional development, perfect timing, and dumb luck. Throwing your money down on that trifecta is much closer to gambling than investing.

Then there's Turbo, supposedly a decentralized experiment. Decentralization is another catchphrase that gets tossed around endlessly, but what does it mean exactly in this case right here. Is the code open-source? Is the project really as community-driven as advertised or are there clear, centralized players orchestrating the puppetry behind closed doors? High risk warning sign #2 – Lack of transparency. But keep in mind, decentralization for the sake of it with no proven use isn’t an innovation, it’s a recipe for disorder.

In addition, ALI and Humans.ai are playing in the AI and data space, which introduces a whole other set of concerns. Data privacy, security, and ethical considerations must be of the highest priority. How are these projects handling user data? Are they complying with relevant regulations? What protections will be implemented to ensure they are not misused or manipulated? Their long-term viability would be severely affected by this regulatory scrutiny given that the potential to double back on the work already done is huge. Car hating aside, the regulatory landscape is still a pretty intimidating bog. Investing in these cryptos is like walking through that swamp with a blindfold on and just praying you don’t superman a gator.

Right now, Marlin is pitched as an infrastructure play, sort of like pick your favorite layer one, looking to scale Web3. The infrastructure projects are less sexy but definitely more shovel ready. They are highly competitive and need a lot of technical know-how. Does Marlin have a competitive advantage? Can it deliver on its promises? The road to Web3 infrastructure is lined with good intentions and abandoned projects.

Now, don’t hear what I’m not saying these projects are doomed to fail. What I’m not saying is that the deck isn’t already stacked against them. The crypto market can be like a minefield, but penny cryptos are the most treacherous. Before you even think about investing, ask yourself these questions:

If you can’t answer “yes” to each of these questions, run in the opposite direction. Seriously.

Investing in penny cryptos is, in most respects, similar to purchasing lottery tickets. You’re waiting on a life-changing windfall, but the odds are stacked miles high in opposition. Unlike a lottery, you have a chance to study the odds. With careful planning, you can at least marginally shift the odds in your favor. Get rich quick by scammin’ on the feds at your own peril. The house always wins.

If you want to start exploring the crypto space, stick with larger market cap coins such as Bitcoin or Ethereum. Although they remain volatile, they’re overall a lot less risky than penny cryptos. Or explore other asset classes altogether. Diversification is your friend.

The temptation of sudden wealth is a siren’s song—which makes it all the more insidious. Approach penny cryptos with extreme caution. Do your own research. Understand the risks. And only invest as much money as you can afford to lose. Remember that the greatest rewards often accrue to those who prudently decide to take big risks. Stop trying to figure out what the next new shiny thing is!

Look, I'm not saying these projects are guaranteed to fail. But I am saying the odds are stacked against them. The crypto market is a minefield, and penny cryptos are particularly dangerous. Before you even think about investing, ask yourself these questions:

  • Have I thoroughly researched the project's whitepaper, team, and technology?
  • Do I understand the risks involved, including the potential for rug pulls, scams, and regulatory crackdowns?
  • Am I comfortable losing everything I invest?

If you can't answer "yes" to all of these questions, stay away. Seriously.

Unexpected Connections: Lottery Tickets and Crypto

Investing in penny cryptos is, in many ways, like buying lottery tickets. You're hoping for a life-changing windfall, but the odds are overwhelmingly against you. The difference is, unlike a lottery, you can actually research the odds, and even influence them slightly by making informed decisions. But don't delude yourself into thinking you can beat the system. The house always wins.

Alternatives Exist: Don't Put All Eggs in One Basket

If you're looking to dip your toes into the crypto world, consider more established coins like Bitcoin or Ethereum. They're still volatile, but they're generally less risky than penny cryptos. Or explore other asset classes altogether. Diversification is your friend.

Final Word: Invest Responsibly, or Don't Invest at All

The allure of quick riches is powerful, but it's also dangerous. Approach penny cryptos with extreme caution. Do your own research. Understand the risks. And only invest what you can afford to lose. Remember, the greatest gains often come from the most carefully calculated risks, not from blindly chasing the next shiny object.