Unlocking Over $170 Million in Crypto Tokens: Should You Avoid Investing?
Three cryptocurrencies are set to unlock over $170 million in tokens this week, posing potential risks to cryptocurrency traders who may be heavily exposed to these events. The sheer volume of tokens being unlocked has the potential to flood the market, leading to increased selling pressure and significant price fluctuations that could impact your investment strategy.
Avoiding Exposure to Large Token Unlocks
- Nine projects are set to unlock a significant amount of tokens in the next seven days.
- These projects include Aptos (APT), Xai (XAI), ImmutableX (IMX), Ethena, io.net (IO), dYdX (DYDX), Moonbeam (GLMR), 1inch (1INCH), and Forta (FORT).
Aptos’s (APT) $66M Token Unlock
If you are considering trading APT tokens, it is advisable to avoid exposure to this cryptocurrency due to a potential sell-off. Aptos is a layer-one blockchain designed for Web3 and DeFi solutions developed by former Meta Platforms engineers.
- The protocol will unlock 11.31 million APT tokens worth $66.16 million on July 12.
- This represents nearly a 2.5% supply inflation that occurs monthly.
- Core contributors and the Foundation will receive 5.29 million APT, while private investors will get $16.43 million.
Xai’s (XAI) $65M Token Unlock
XAI is expecting a significant unlock event that could impact the project’s supply inflation and market capitalization. Private investors will receive a substantial portion of the unlocked tokens, potentially affecting market dynamics.
- The protocol will unlock 198.4 million XAI on July 9, representing a 71.6% supply inflation.
- Private investors will receive over 52% of the total unlocked tokens, posing a risk to market stability.
- The team will receive a significant share of the unlocked tokens, further impacting market liquidity.
ImmutableX’s (IMX) $41M Token Unlock
ImmutableX will also experience a token unlock event, releasing 32.47 million IMX tokens worth $41.24 million. The distribution of these tokens will play a crucial role in the project’s development and ecosystem growth.
Cryptocurrency traders should closely monitor these unlocking events and assess the potential impact on market dynamics and token prices. Proper risk management and understanding the risks associated with trading specific cryptocurrencies are essential in navigating the volatile crypto market.
Hot Take: Mitigating Risks in Cryptocurrency Trading
As a cryptocurrency trader, it is crucial to stay informed about unlocking events and token releases that could significantly impact market dynamics. By actively managing your risk exposure and understanding the potential risks associated with trading specific cryptocurrencies, you can navigate the volatile crypto market more effectively.
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