Characteristics of Penny Crypto

[Suba]

Some sites refer to penny crypto as coins or tokens priced below one USD. Personally, I disagree with this opinion, as there are many coins or tokens priced below $1 but with high market caps, such as ADA, USDT, USDC, TRX, Doge, etc. Therefore, I think penny crypto would be more appropriate for cryptocurrencies priced below a dime ($0.1) or even below 1 cent ($0.01). Therefore, penny crypto would be more appropriately labeled as new coins/tokens, crypto crashes, and cryptocurrencies that have been abandoned by their investors.

Therefore, to define penny crypto, we need to examine several characteristics of penny crypto, such as:
1. Very low price, below 1 cent
2. Low/micro market cap
3. Low liquidity
4. Limited adoption and distribution of coins/tokens
5. High volatility and easy manipulation by whales
6. Only listed on a few crypto exchanges.

 

[gwolf666]

I agree with your approach that the definition of penny crypto should focus on more specific characteristics and not just price. Many cryptocurrencies worth less than a dollar, such as ADA or USDT, have a fairly robust market and significant adoption, so they don't fit into that category. I think that for a coin to be considered a penny crypto, it must meet characteristics such as a very low price, for example, below 1 cent, in addition to having a very small market, low liquidity, and being highly volatile. It's also important that these coins have low adoption and are on few platforms, which facilitates manipulation by large investors or "whales." In that sense, your definition helps to better distinguish those cryptocurrencies that truly have a high-risk profile, low stability, and potentially a history of abandonment by their developers. It's a useful classification for investors looking to understand exactly what they are investing in.