⭐️ 3 cryptocurrencies to avoid trading this week
🔸 Avoid trading Optimism (OP)
First, investors should avoid trading Optimism (OP), the popular second layer for Ethereum (ETH), amid a potential sell-off incoming. On May 31, the protocol will unlock 31.34 million OP tokens currently worth $80.23 million.
Optimism’s unlock represents a nearly 3% supply inflation that repeats every month with slight variations, as previously reported by Finbold. Core contributors to the protocol will receive 16.54 million OP worth $42.35 million, while private investors will get $37.89 million to realize their monthly profits over retail buyers.
🔸 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 April 27 and, previously, for March 31, with 33.34 million tokens unlocked – worth $70.33 million and $117.33 million, respectively.
On February 29, we also reported the unlock of the same amount, worth $130 million. The gradual loss of purchasing power evidence the nefarious effects of supply inflation on cryptocurrencies and the “avoid trading” alert.
Now, the protocol will put the same amount of DYDX in circulation on June 1, currently worth $70 million. This represents a nearly 12% monthly inflation likely to affect DYDX investors. As of this writing, the token trades at $2.10.
🔸 Sui Network (SUI)
Another cryptocurrency to avoid trading due to recurrent monthly token unlocks is Sui Network (SUI). The competing layer-1 blockchain developed by former Meta Platforms (NASDAQ: META) engineers will inflate its supply by 2.8% this month.
On June 1, the protocol will unlock 65.08 million SUI for private investors, the development team, and the Mysten Labs treasury. Notably, private investors will receive 39.16 million SUI for over 60% of the total $70 million worth of unlocks.
