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3 Cryptocurrencies to Avoid This Week Among $150 Million in Tokens Unlocked
Three cryptocurrencies will unlock over $150 million in tokens this week, which cryptocurrency traders should avoid having substantial exposure to. These breakouts have the potential to flood the market, leading to increased selling pressure and significant price fluctuations.
On June 15, Finbold recovered data from TokenUnlocks.app, showing $181.35 million in seven-day cliff unlocks. In particular, the three main protocols this week will release $149.48 million in tokens, equal to 82% of the total. Nine projects make up the “next seven days of unblocking the cliff.”
Arbitrum (ARB) $85 million token unlocked.
First, Referee (ARB) recorded the highest unlock of the week in terms of USD value, with supply inflation of $85.37 million. This amount will increase Arbitrum’s circulating supply by 3.2% on June 16, likely creating selling pressure.
The event will release 92.65 million ARB from the vesting contracts reserved for the team and private investors. Essentially, the former will receive 56.13 million ARBs, worth $51.72 million, while the latter will receive 33.65 million dollars out of 36.52 million tokens.
Arbitrum unlocks a similar amount of tokens each month, driving annual inflation above 35%. In May Finbold reported the same $92.65 million ARB release is worth $92.44 million. Therefore, the $7.17 million month-over-month loss of its contracts highlights the economic effects of this event.
Avoid mixing up Space ID (ID) and Pixel (PIXEL)
Finally, Space ID (ID) and Pixel (PIXEL) are the second and third largest cryptocurrency unlocks this week.
The vesting contracts will release 78.49 million IDs on June 22, worth $44.45 million. This will increase Space ID’s supply by 18.2%, being the most substantial token unlock this week. Additionally, 54.37 million PIXELs will hit the market on June 19, inflating the project’s offering by 7% at a valuation of $19.66 million.
However, cryptocurrency traders will seek to speculate on the economic effects these breakouts and sell-offs may have on the price, which could lead to greater volatility and worsen the potential risk-reward ratio. The market is uncertain and influenced by multiple factors, requiring proper risk management and learning when to avoid trading specific cryptocurrencies.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.