Finbold identified three cryptocurrencies to avoid trading next week due to the upcoming substantial token unlocks and sell-offs. These unlocks have the potential to flood the market, leading to increased selling pressure and significant price fluctuations.
Experienced cryptocurrency market participants closely monitor factors like demand and supply dynamics about the tokens and assets they are trading. By considering these dynamics, investors can make well-informed decisions that maximize profitability while effectively managing associated risks.
In particular, data from TokenUnlocksApp shows $164.76 million in potential sell-offs for the next seven days from June 7. The top two highest unlocks will happen on June 12 and June 14, releasing $160.41 million worth of tokens. These two massive releases correspond to 97.5% of the six projects, unlocking this week’s total amount.
Cliff unlocks the next seven days. Source: TokenUnlocks.App
Aptos (APT)
First, Aptos (APT), a layer-1 blockchain developed by former Meta (NASDAQ: META) engineers, will unlock 11.31 million APT worth $103.48 million. The Foundation will receive a smaller share of the unlock, with 1.33 million tokens worth $12.20 million.
Community and Core contributors will receive 3.21 million and 3.96 million tokens, totaling $65.59 million. Meanwhile, investors will realize $25.69 million with sales of 2.81 million APT.
The whole unlock will inflate Aptos supply by 2.6% on June 12, likely creating a huge selling pressure.
Cliff unlocks Aptos (APT) on June 12. Source: TokenUnlocks.App
ImmutableX (IMX)
ImmutableX (IMX) is the second cryptocurrency to avoid trading due to a significant unlock that will inflate its supply by 1.7% on June 14. Specifically, 25.53 million IMX will be released to ecosystem development and project development.
The $56.93 million will be fully managed by the team, which represents a proportionally high share of centralized capital.
Cliff unlocks Immutable (IMX) on June 14. Source: TokenUnlocks.App
Avoid trading XRP amid Ripple sell-offs
From another perspective, Ripple has already unlocked 1 billion XRP in June and reserved 200 million tokens out of this total, plus an extra 200 million, to sell this month.
As reported by Finbold, the company has already moved 150 million XRP, which may soon land in crypto exchanges. With another 250 million tokens in its treasury account, Ripple’s activities could also create strong selling pressure on the cryptocurrency.
Ripple (1), treasury account (XRP). Source: XRP Scan / Finbold
However, crypto traders will try to speculate on the economic effects these unlocks and sell-offs may have on price, which could bring increased volatility and worsen the potential risk-reward ratio. The market is uncertain and influenced by multiple factors, requiring proper risk management and learning when to avoid trading specific cryptocurrencies.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
