🔥 3 cryptocurrencies to avoid trading in May's first week
♦️ Avoid trading Memecoin (MEME)
First, Memecoin (MEME) stands out with a staggering $144.64 million worth of 5.318 billion MEME. The team will unlock these tokens on May 3, inflating the circulating supply by 32%, which may cause a crash.
From the total, 3.45 billion MEME will be released via airdrop for an imminent sell-off of $93.92 million. According to the CoinMarketCap index, this amount is over two times Memecoin’s 24-hour volume of $40 million.
♦️ dYdX Protocol (DYDX)
The decentralized exchange protocol DYDX is again featured among cryptocurrencies to avoid trading due to its unlocks. Finbold reported a similar warning for March 31 and, previously, for February 29, with 33.34 million tokens unlocked – worth $117.33 million and $130 million, respectively.
Now, the protocol will put the same amount of DYDX in circulation on May 1, currently worth $70.33 million. Evidencing the losses accrued from previous unlocks, worth nearly 50% less than from February’s unlock.
As for the distribution, early investors will receive most of the unlocks, worth $39.01 million by press time. The team will have $21.48 million worth of DYDX to sell in the following weeks, and a reserve for future employees will take the rest, worth $9.85 million.
♦️ Optimism (OP)
Finally, Optimism (OP) has the third-largest token unlock for the first week of May. Traders should also avoid trading OP in the following days despite a proportionally lower inflation than the previous two.
The layer-2 blockchain for the Ethereum (ETH) ecosystem will unlock 24.16 million OP, worth $56.29 million. On April 29, core contributors will receive 12.75 million tokens, while investors will receive 11.41 million tokens.
Increasing a token’s supply does not guarantee that its price will fall, as demand acts as a balancing force when there is any.
However, crypto traders will try to speculate on the economic effects these unlocks may have on price.
