A popular crypto trader is warning investors about two AI-focused altcoins, ai16z and Zerebro. These coins have seen incredible gains – over 10,000% and 19,000% respectively – since November 3rd, but the trader believes a major correction is coming.
Binance Listing: A Red Flag?
The trader, known as Altcoin Sherpa, points to the upcoming listing of ai16z and Zerebro on Binance futures as a potential trigger for a significant price drop. He argues that past performance of similar coins suggests this is usually a “sell the news” event.
Past Performance as a Predictor
Sherpa cites several examples of memecoins – Fartcoin, Just a chill guy, Moo Deng, Goatseus Maximus, and Peanut the Squirrel – that experienced sharp declines after their Binance futures listings. While some eventually rebounded, the initial drop was substantial, with Fartcoin seeing a 48% decrease. He warns that a 50% drop would be the best-case scenario for ai16z and Zerebro.
Current Prices and Potential Risk
At the time of writing, ai16z is trading at $2.10 and Zerebro at $0.607. Sherpa, who holds both coins, advises caution, highlighting the significant risk involved.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies. Investing in crypto is risky, and you could lose money.
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