Black_background_logo_BitcoinWorld-removebg-preview
3 Cryptocurrencies To Avoid Trading Next Week
Latest News News

3 Cryptocurrencies To Avoid Trading This Week

  • According to Cliff Unlocks from TokenUnlocksApp, here are the three cryptocurrencies to avoid trading next week.

Most cryptocurrency tokens have an ongoing initial distribution, which includes locked tokens under vesting contracts. 

Usually, it is smart to avoid trading these cryptocurrencies in the week of the token unlocks for proper risk management.

Notably, one of the most challenging aspects of cryptocurrencies is the initial distribution. Each project adopts a unique model for that, called ‘tokenomics.’

In particular, reserving over 50% of the entire supply for the team, the foundation, private investors, and advisors has become popular over the years. 

These reserves are usually locked in vesting contracts, and their release often means strategic sell-offs in the days or weeks following unlock.

See Also: Starknet Token Plummets Over 60% Value Amidst Airdrop Controversy And Sell-Offs

According to Cliff Unlocks from TokenUnlocksApp, here are the three cryptocurrencies to avoid trading next week. In total, the market will unlock $285.09 million worth of tokens in the next seven days.

Avoid Trading dYdX (DYDX) Amid Massive Unlock

First, dYdX (DYDX) amounts to nearly 45% of the total unlocked tokens next week, and speculators should avoid trading it. 

The decentralized exchange protocol will release 33.34 million DYDX on February 29, worth $130 million by press time.

Private investors will receive the most of it, 18.49 million tokens worth $72.10 million, which suggests profit realization. 

Further, the team will receive the remaining 14.85 million, which may also go through a sell-off.

Optimism (OP) Token Unlock

Second, crypto investors should avoid trading Optimism (OP) as next week’s second-largest unlock. 

The layer-2 protocol for Ethereum (ETH) will release 24.16 million OP earlier on February 29, worth $86.73 million.

Interestingly, the distribution will be similar for the team (‘Core Contributors’) and private investors. 

The former will receive 12.75 million OP, while the latter will receive 11.41 million tokens.

Echelon Prime (PRIME)

Finally, Echelon Prime (PRIME) will unlock $20.44 million worth of 1.66 million PRIME a day before the other two, on February 28. 

912,040 PRIME will go to the Parallel Studios reserve and 750,000 to its private investors.

Thus, the Web3 gaming studio native token is another cryptocurrency to avoid trading next week for investment protection.

See Also: Did Curve Finance (CRV) Founder Michael Egorov Make This Big Transfer To Binance?

However, these cryptocurrencies can still perform well in the following days despite the expected sell-offs. 

The cryptocurrency market is highly volatile and unpredictable, meaning everything can happen in the short term.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

 

#Binance #WRITE2EARN

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.