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3 Cryptocurrencies to Avoid Amid $170M in Token Unlocks
Three cryptocurrencies will unlock over $170 million in tokens this week, which cryptocurrency trader should avoid having substantial exposure to. These breakouts have the potential to flood the market, leading to increased selling pressure and significant price fluctuations.
On July 7, Finbold recovered data from the TokenUnlocks app, which shows $186.32 million in seven-day cliff unlocks. Specifically, the top three protocols will release $173.02 million in tokens this week, or 93% of the total.
In total, nine projects make up the “next seven-day cliff unlock”: Aptos (ADAPT (Water and Water Supply)), Xai (XAI), ImmutableX (IMMX-I …), Ethena (ENA), io.net (IO), dYdX (DYDX), Moonbeam (GLMR), 1 inch (1 INCH) and Forta (FORT).
Cliff unlocks the next 7D. Source: TokenUnlocks.app
Aptos (APT) $66M Token Unlocked
First, investors should avoid trading and exposing themselves to APT in a potential upcoming sell-off. Aptos is a layer-one blockchain for Web3 and decentralized finance (DeFi) solution developed by the former Meta Platforms (NASDAQ: Metaphysics) engineers.
On July 12, the protocol will unlock 11.31 million APT tokens, currently worth $66.16 million. Interestingly, the network unlocked the same amount of tokens on June 12, worth $103.48 million, as Finbold reported.
The Aptos unlock represents a supply inflation of nearly 2.5% that repeats every month with slight variations. The loss of purchasing power month over month demonstrates the potential economic impact of this inflation.
Core protocol contributors and the Foundation will receive 5.29 million APT worth $30.96 million, while private investors will receive $16.43 million to realize their monthly profits on retail buyers.
Xai (XAI) $65M Token Unlocked
Secondly, XAI has a more significant unlock despite having the same nominal value as Aptos due to its smaller market cap. In this regard, this upcoming event will represent a worrying 71.6% supply inflation for the project.
On July 9, the protocol will nearly double its market cap, unlocking 198.4 million XAI for private investors, the development team, the ecosystem, and “reserves.” Specifically, private investors will receive 103.95 million XAI, or over 52% of the total unlock value of $65 million.
The team will receive the second largest share of 71.43 million tokens, worth $23.64 million. A sale of this entire amount could liquidate XAI buy orders across all markets, driving the price to zero.
ImmutableX (IMX) $41M Token Unlocked
Finally, the last significant unlock is by ImmutableX, with an unlock of 32.47 million IMX worth $41.24 million. The project will have an even distribution aimed at ecosystem and project development, triggering the event on July 12.
Cryptocurrency traders will try to speculate on the economic effects of these breakouts and sell-offs on the price, which could increase volatility and worsen the potential risk-reward ratio. The market is uncertain and influenced by multiple factors, which requires proper risk management and learning when to avoid trading specific cryptocurrencies.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.