3 cryptocurrencies to avoid this week amid $150 million in token unlocks
This week, three cryptocurrencies are set to unlock over $150 million worth of tokens, posing potential risks for traders. These unlocks could result in a flood of tokens into the market, leading to increased selling pressure and significant price fluctuations. It is advisable for traders to avoid having substantial exposure to these cryptocurrencies during this period.
According to data retrieved from TokenUnlocks.app by Finbold on June 15, a total of $181.35 million in token unlocks is scheduled for the next seven days. The three leading protocols account for $149.48 million, comprising 82% of the total unlocks.
The first cryptocurrency, Arbitrum (ARB), will have the highest value unlock of the week, with $85.37 million worth of tokens. This will increase Arbitrum’s circulating supply by 3.2% on June 16, potentially creating selling pressure. The unlock will release 92.65 million ARB tokens from vesting contracts, with 56.13 million going to the team and private investors and the remaining allocated to other recipients.
Space ID (ID) and Pixel (PIXEL) are the second and third-largest unlocks, respectively. On June 22, vesting contracts will release 78.49 million ID tokens, worth $44.45 million, resulting in an 18.2% inflation of Space ID’s supply. On June 19, 54.37 million PIXEL tokens will enter the market, inflating the supply of Pixel by 7% at a valuation of $19.66 million.
It is important to note that the economic effects of these unlocks and subsequent sell-offs on the price of these cryptocurrencies are uncertain. Speculation by traders can lead to increased volatility and worsen the risk-reward ratio. Therefore, proper risk management strategies and the ability to identify when to avoid trading specific cryptocurrencies are crucial.
Disclaimer: The information provided in this article should not be considered as investment advice. Investing in cryptocurrencies carries inherent risks, and individuals should be cautious and do their own research before making any investment decisions.