🔥 Three cryptocurrencies to steer clear of in the first week of May:
♦️ Memecoin (MEME)
First up, avoid trading Memecoin (MEME). The team plans to unlock 5.318 billion MEME tokens on May 3, which will increase the circulating supply by 32%. This significant increase might lead to a price drop. Out of these, 3.45 billion MEME will be distributed through an airdrop, potentially leading to a quick sell-off worth $93.92 million. This figure is more than double Memecoin’s daily trading volume of $40 million, according to CoinMarketCap.
♦️ dYdX Protocol (DYDX)
Next, it’s wise to avoid dYdX Protocol (DYDX) as well. Historical data from Finbold shows repeated warnings about trading this cryptocurrency around unlock dates, including March 31 and February 29. On May 1, another 33.34 million DYDX tokens, valued at $70.33 million, will enter circulation. This is nearly 50% less in value compared to the tokens unlocked in February. Early investors will receive most of these unlocks, with additional portions designated for the team and a reserve for future employees.
♦️ Optimism (OP)
Lastly, trading Optimism (OP) is also risky in the upcoming days despite its relatively lower inflation rate compared to the others. On May 1, Optimism, a layer-2 solution for Ethereum, will release 24.16 million OP tokens valued at $56.29 million. Core contributors are set to receive 12.75 million tokens, and investors will get 11.41 million tokens.
While increasing a token's supply doesn't necessarily lead to a price drop due to potential demand, traders often speculate on the possible economic impacts of these unlocks on the cryptocurrency's value.
$MEME ME $DYDX $OP #MEME #dogecoin20 YDX #YDX #OP
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