3 Cryptocurrencies to Steer Clear of This Week Amid 150 Million in Token Unlocks
Three digital currencies are set to release over $150 million in tokens this week, posing a risk for cryptocurrency traders who should be cautious about holding significant positions. These releases could result in a flood of tokens entering the market, leading to heightened selling pressure and notable price fluctuations.
According to data obtained on June 15 from TokenUnlocks.app, a total of $181.35 million is expected to be unlocked within the next seven days. The three primary protocols releasing tokens this week will account for $149.48 million, representing 82% of the total amount. Additionally, there are nine other projects included in the upcoming token unlocks.
Arbitrum’s (ARB) $85 million token unlock stands out as the largest release in terms of USD value this week. This inflation in the token’s supply by $85.37 million, scheduled for June 16, is likely to lead to a surge in selling pressure. The event will see 92.65 million ARB tokens being released from vesting contracts, with the team and private investors set to receive significant amounts.
Space ID (ID) and Pixel (PIXEL) are also gearing up for substantial token unlocks this week. Space ID will release 78.49 million ID tokens on June 22, equaling $44.45 million, while Pixel will introduce 54.37 million tokens on June 19, valued at $19.66 million. These releases will significantly impact the circulating supply of these cryptocurrencies.
It is advisable for traders to exercise caution and carefully consider the potential economic consequences of these token unlocks and subsequent sell-offs on the market. Heightened volatility and a shift in risk-reward ratios are expected, emphasizing the importance of effective risk management strategies when engaging in cryptocurrency trading.
Please note that the information provided in this article is not intended as investment advice. Investing in cryptocurrencies carries inherent risks, and individuals should be aware that capital can be at risk when participating in such markets.
