Steer Clear of These Three Cryptocurrencies During the Unleashing of 170 Million Worth of Tokens
This week, the cryptocurrency market is bracing for a significant event as three digital currencies are set to release over $170 million worth of tokens. Traders are advised to exercise caution and limit their exposure to these assets, as the influx of new tokens could lead to a surge in selling activity and considerable price swings.
On July 7, Finbold accessed information from TokenUnlocks.app, revealing that $186.32 million worth of tokens are scheduled for release over the next seven days. The bulk of this amount, $173.02 million, will come from just three major protocols, representing 93% of the total expected releases.
The upcoming week will see nine projects reaching their cliff unlock milestones: Aptos (APT), Xai (XAI), ImmutableX (IMX), Ethena (ENA), io.net (IO), dYdX (DYDX), Moonbeam (GLMR), 1inch (1INCH), and Forta (FORT).
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*Cliff Unlocks Next 7D. Source: TokenUnlocks.app*
**Aptos (APT) – $66M Token Release:**
Investors are cautioned against trading Aptos (APT) tokens due to the likelihood of a sell-off. Aptos, a Web3 and DeFi platform created by ex-Meta Platforms (NASDAQ: META) engineers, is set to release 11.31 million APT tokens valued at $66.16 million on July 12. This event mirrors a previous unlock on June 12, which released the same number of tokens then valued at $103.48 million.
The upcoming unlock for Aptos signifies a supply inflation of nearly 2.5%, a recurring monthly event with minor variations. This consistent dilution of value underscores the economic implications of such inflation. Core team members and the Foundation are set to receive 5.29 million APT tokens worth $30.96 million, while private investors will obtain tokens valued at $16.43 million, capitalizing on their monthly gains at the expense of retail investors.
*APT Token Release on July 12. Source: TokenUnlocks.App*
**Xai (XAI) – $65M Token Release:**
Xai’s upcoming token release is particularly noteworthy due to its lower market capitalization, despite the nominal value being on par with Aptos. The unlock scheduled for July 9 will result in a staggering 71.6% supply inflation for Xai, as 198.4 million XAI tokens become available to private investors, the development team, the ecosystem, and reserves. Private investors are set to receive the lion’s share of 103.95 million XAI, accounting for over 52% of the $65 million worth of tokens being unlocked. The development team is next in line with 71.43 million tokens, valued at $23.64 million. A complete sell-off of these tokens could potentially wipe out Xai’s market orders, plummeting the price to zero.
*XAI Token Release on July 9. Source: TokenUnlocks.App*
**ImmutableX (IMX) – $41M Token Release:**
Finally, ImmutableX is preparing for a significant token release of 32.47 million IMX tokens, collectively valued at $41.24 million, set to occur on July 12. The distribution is aimed at fostering ecosystem and project development.
*IMX Token Release on July 12. Source: TokenUnlocks.App*
Cryptocurrency traders are gearing up to navigate the economic repercussions of these token releases and potential sell-offs, which may amplify market volatility and alter the risk-reward balance. Given the market’s inherent unpredictability and the multitude of influencing factors, traders must employ sound risk management strategies and discern when to steer clear of trading certain cryptocurrencies.
**Disclaimer:**
The information provided here is not intended as investment advice. Investment decisions involve speculation, and there is always the risk of losing capital.
