With expectations of a bull market for 2024 following Bitcoin’s halving, token airdrops are becoming popular again. While rewarding for its participants, investors should avoid trading recently airdropped cryptocurrencies. This is because these tokens have a high potential to experience major sales in the short term. According to crypto analyst Vinicius Barbosa, investors should stay away from 3 trending cryptocurrencies due to recent major airdrops.
The first high-risk cryptocurrency: Dymension (DYM) IOU
First, Dymension’s (DYM) airdrop attracted speculators. It is currently trending due to main-neet launch on 6th February. Therefore, the DYM distribution airdropped an IOU token and not the actual native asset to be launched on the main-net. More than the usual risks of trading a newly distributed cryptocurrency, Dymension also exposes investors to liquidity risks as people will use the IOU synthetic asset for the real token. DYM’s IOU is trading at $4.69. It has also had a relatively stable track record since January 29. Thus, increasing the risk of a dump after main-net launch.
The second secret is Jupiter (JUP), the king of airdrops
Jupiter (JUP) is another trending cryptocurrency that has been declining recently. It would be beneficial for investors to avoid trading with this cryptocurrency next week. JUP in particular has fallen by a massive 50% from its initial value on January 31st. In this movement, it decreased from $ 1.27 to $ 0.63. This proves what can happen with an airdrop token in its early stages. Yet Jupiter has only distributed 13.5% of its total supply. So more sales are possible in the future.
The last cryptocurrency in the high-risk zone: ZetaChain (ZETA)
ZetaChain (ZETA) is the third token that is risky to trade after its airdrop. ZETA is trading in an upward trend from $0.817 to $1.78 at the time of writing. ZetaChain currently has a market cap of $420 million. This is a relatively high value for a new project. In this respect, ZETA is the token that is most likely to experience a major decline if airdrop recipients decide to realize this huge profit.
It is worth noting that highly promotional airdrops also become attractive targets for hackers. Therefore, people attending these events should be extremely careful when clicking on links and connecting their wallets. Despite the risks, it is possible for experienced investors to capture great opportunities with airdrops.
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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