RIOT Blockchain is all over the news since last November. Initially, it was a blockchain stock that was one of the super stars with astonishing feedback (here and here are some examples). However, soon after, it all turned sour, and RIOT Blockchain was all over the place with suspicion about pump-and-dump practices.
Looking at the RIOT Blockchain chart, symbol RIOT, it is clear that many investors have been trying to chase prices higher, especially in the November and December timeframe. That’s so typical during a strong bull market.
One of the key success factors of investors is that they don’t lose money. It is far better to miss an opportunity that has risen too high rather than chase its price higher. Moreover, if the opportunity is not solid, it is better to not take any risk.
RIOT is a textbook example of this investment principle.
At InvestingHaven, we run a blockchain investing research service. Although we gave RIOT the benefit of the doubt, we never categorized it as a top blockchain stock. This is what we wrote at a certain point:
The company made many interesting acquisitions in the Blockchain sector and the share prices increased exponentially. However, we believe that the damage from the CNBC report and the recent media exposure in addition to multiple possible lawsuits might be too damaging. The stock price might spike here and there but from an investment perspective, there are much better opportunities for investors at this point. CNBC Report & Follow up investigation as well as the CEO’s answer.
As said, even in a raging bull market like the one in cryptocurrencies and blockchain stocks, it is mandatory to avoid stocks that are not doing the right thing, i.e. create value. It is one of those insights that investors tend to forget when they see a chart unfolding like the one embedded below, only to get in near the top and sell much lower once bad news breaks out. Identifying ‘stocks to avoid’ is crucially important, and you can get a list of 23 blockchain stocks to avoid in our blockchain investing research service.