The cryptocurrency market is inherently uncertain and volatile. However, it is possible for certain events to increase uncertainty and volatility for certain cryptocurrencies. From a risk management perspective, avoiding trading under extreme uncertainty can improve investors’ overall outcomes. In this context, analyst Vinicius Barbosa says that investors of these 3 altcoins should be alert next week.
Attention: These 3 cryptocurrencies will perform ‘cliff unlocks’
Token unlock events are events that often create uncertainty and volatility. By increasing the circulating supply, they are likely to greatly influence prices. Therefore, here are three altcoins to avoid trading next week. Over the next seven days, crypto projects will unlock $338.42 million worth of tokens. Specifically, Aptos (APT), The Sandbox (SAND), and CyberConnect (CYBER) will unlock 98.9%, worth a total of $334.74 million, according to Token Unlocks App.
Aptos (APT) unlocks major token on February 11
First, Aptos opens the largest dollar-denominated lock expected on February 11. The vesting agreement will release 24.84 million APT worth over $221.59 million by press time. Specifically, “Investors” and “Core participants” will receive the largest portion, amounting to over $180 million in liquid assets. The total unlocking will increase the circulating supply of APT by 7.3%.
Stay away from SNAD and CYBER trading next week!
Two other cryptocurrencies that should be avoided due to token unlocking are The Sandbox and CyberConnect. The first will release 205.59 million SAND ($95.18 million), while the second will release 2.36 million CYBER ($17.97 million). Both unlocks will increase the circulating supply by 9.2% and 15.9% respectively. Specifically, The Sandbox will unlock its tokens on February 14 and CyberConnect on February 13.
Effects of cryptocurrency token unlock event
Essentially, it is possible for recipient organizations to use this opportunity to launch unlock tokens. This situation will inevitably create huge selling pressures for these cryptocurrencies. This will affect their prices and reduce their holding value. On the other hand, it is possible that speculative price movements will cause the prices of these tokens to increase in the short term. In this scenario of high speculation and uncertainty, investors should avoid buying or selling the three cryptocurrencies mentioned above and wait for further developments.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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