- Bitcoinworld selected three cryptocurrencies to avoid trading next week due to higher risks on the horizon.
The cryptocurrency market is naturally uncertain and volatile, but specific events may increase uncertainty and volatility for specific cryptocurrencies.
From a risk management perspective, avoiding trading under extreme uncertainty may improve traders’ overall results.
In this context, Bitcoinworld selected three cryptocurrencies to avoid trading next week due to higher risks on the horizon.
3 Cryptocurrencies To Avoid Trading Next Week Due To Token Unlocks
Amid events that generate uncertainty and volatility, token unlocks often massively impact prices by increasing the circulating supply.
Therefore, three cryptocurrencies to avoid trading next week are due to token unlocks.
For the next seven days, crypto projects will unlock $338.42 million worth of tokens.
In particular, Aptos (APT), The Sandbox (SAND), and CyberConnect (CYBER) will unlock 98.9% of it for a total of $334.74 million worth, according to Token Unlocks App.
Aptos (APT) Massive Token Unlock On February 11
First, Aptos has the largest unlock in dollars, expected on February 11. Its vesting contract will release 24.84 million APT worth over $221.59 million by press time.
Notably, “Investors” and “Core contributors” will receive the largest part, summing up to over $180 million of liquid assets. The total unlock will increase Apto’s circulating supply by 7.3%.
Avoid Trading SAND And CYBER Next Week
The former will release 205.59 million SAND ($95.18 million), while the latter 2.36 million CYBER ($17.97 million).
Both unlocks will increase their circulating supply by 9.2% and 15.9%, respectively.
Specifically, The Sandbox will unlock its tokens on February 14 and CyberConnect on February 13.
Essentially, the receiving entities could take this opportunity to dump the unlocked tokens on the market.
This would inevitably create huge selling pressures for these cryptocurrencies, affecting their prices and diluting their holding values.
On the other hand, speculative price action could also make these tokens increase in price in the short term.
In this scenario of high speculation and uncertainty, investors should avoid trading the three aforementioned cryptocurrencies and wait for further developments.
Disclaimer: The information provided is not trading nor financial advice. Bitcoinworld.co.in holds no liability for any trading or 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 trading or investment decisions.