đŁ 3 cryptocurrencies to avoid this week amid $150 million in token unlocks
Three cryptocurrencies will unlock over $150 million in tokens this week, which cryptocurrency traders should avoid having substantial exposure to. These unlocks have the potential to flood the market, leading to increased selling pressure and significant price fluctuations.
đ¸ Arbitrumâs (#ARB ) $85M token unlock
First, Arbitrum (ARB) has the weekâs highest unlock in USD value, with an $85.37 million supply inflation. This amount will increase Arbitrumâs circulating supply by 3.2% on June 16, likely creating a selling pressure.
The event will release 92.65 million ARB from vesting contracts reserved for the team and private investors. Essentially, the former will receive 56.13 million ARB, worth $51.72 million, while the latter will receive $33.65 million of 36.52 million tokens.
Arbitrum unlocks a similar amount of tokens every month, resulting in a yearly inflation superior to 35%. In May, Finbold reported the same 92.65 million ARB unlock worth $92.44 million. Therefore, the $7.17 million month-over-month loss of its contracts evidences the economic effects of this event.
đ¸ Avoid trading Space ID (#ID ) and Pixel (#PIXEL )
Finally, Space ID (ID) and Pixel (PIXEL) make for the second and third-largest cryptocurrency unlocks this week.
Vesting contracts will release 78.49 million ID on June 22, worth $44.45 million. This will inflate Space IDâs supply by 18.2%, being the most substantial token unlock this week. Moreover, 54.37 million PIXEL will enter the market on June 19, inflating the projectâs supply by 7% at a $19.66 million valuation.
However, crypto traders will try to speculate on the economic effects these unlocks and sell-offs may have on price, which could bring increased volatility and worsen the potential risk-reward ratio. The market is uncertain and influenced by multiple factors, requiring proper risk management and learning when to avoid trading specific cryptocurrencies.
