Steer Clear 3 Cryptocurrencies to Avoid as 170 Million in Token Unlocks Approach
Three cryptocurrencies are set to release over $170 million in tokens this week, prompting caution among cryptocurrency traders regarding exposure. These unlocks have the potential to flood the market, leading to heightened selling pressure and significant price volatility.
On July 7, data retrieved from TokenUnlocks.app shows a total of $186.32 million in seven-day cliff unlocks. The week’s leading protocols are expected to release $173.02 million, which constitutes 93% of the total amount unlocked.
The upcoming seven-day cliff unlocks involve nine projects: Aptos (APT), Xai (XAI), ImmutableX (IMX), Ethena (ENA), io.net (IO), dYdX (DYDX), Moonbeam (GLMR), 1inch (1INCH), and Forta (FORT).
Aptos (APT) will unlock tokens worth $66.16 million on July 12. Investors are advised to exercise caution due to potential sell-offs. Aptos functions as a layer-one blockchain for Web3 and decentralized finance (DeFi), developed by former Meta Platforms (NASDAQ: META) engineers. This unlock represents nearly 2.5% inflation in supply, occurring monthly with slight variations. Core protocol contributors and the Foundation will receive $30.96 million worth of APT, while private investors will realize $16.43 million.
Xai (XAI) will unlock tokens worth $65 million on July 9, significantly impacting its market cap. Private investors, the development team, and reserves will receive 198.4 million XAI, with private investors alone receiving 103.95 million XAI. A potential sell-off could liquidate XAI’s buy orders across all markets.
ImmutableX (IMX) will unlock tokens worth $41.24 million on July 12, focusing on ecosystem and project development.
Cryptocurrency traders are advised to carefully consider the economic implications of these unlocks and potential sell-offs on market volatility and risk-reward ratios. The market remains uncertain, influenced by various factors, necessitating prudent risk management and strategic trading decisions.
Disclaimer: This content does not constitute investment advice. Investing in cryptocurrencies involves speculative risk, and capital is at risk.