3 Cryptocurrencies to Steer Clear of This Week as 150 Million in Token Unlocks Approach

This week, three cryptocurrencies are set to unlock over $150 million in tokens, a situation that traders may want to approach with caution. These unlocks have the potential to saturate the market, causing a surge in selling pressure and significant price fluctuations.

According to data retrieved by Finbold on June 15 from TokenUnlocks.app, a total of $181.35 million in tokens are scheduled to unlock over a seven-day period. The top three protocols releasing tokens this week will unleash $149.48 million, representing 82% of the total. The remaining nine projects make up the rest of the “next seven days cliff unlocks.”

Arbitrum’s (ARB) $85 million token unlock takes the lead in terms of USD value for the week. This significant supply inflation of $85.37 million will increase Arbitrum’s circulating supply by 3.2% on June 16, potentially leading to increased selling pressure.

Space ID (ID) and Pixel (PIXEL) are the second and third-largest cryptocurrencies unlocking tokens this week. Space ID will release 78.49 million ID tokens on June 22, valued at $44.45 million, inflating its supply by 18.2%. Similarly, Pixel will see 54.37 million tokens entering the market on June 19, inflating its supply by 7% at a valuation of $19.66 million.

As traders navigate these unlocks and potential sell-offs, they must consider the economic impacts on prices. Increased volatility and a potential shift in the risk-reward ratio could result from these events. It is crucial for traders to exercise proper risk management and know when to avoid trading specific cryptocurrencies in such uncertain market conditions.

Disclaimer: The information provided in this article is not intended as investment advice. Investment in cryptocurrencies carries inherent risks, and investors should be cautious as their capital is at risk.