Altcoins
Crypto: investors are in danger!
Sat June 01, 2024 ▪ 3 min reading ▪ by Eddy S.
Crypto investors face a formidable challenge in 2024. According to analysts, as much as $44 billion in previously locked altcoins will hit the markets in the coming months. An astronomical figure which could destabilize a large number of alternative projects. Indeed, this massive influx of new cryptocurrencies into circulation threatens to crush prices under incessant selling pressure.
Crypto: The Pitfalls of Low Supply Altcoins
From the outset, it is clear that alternative cryptos present a significantly higher risk profile than that of heavyweights like Bitcoin or Ether. The reason? Many alternative tokens deliberately choose to start with an abnormally low circulating supply. A controversial strategy aimed at artificially inflating overall market value.
But this tactic turns out to be a dangerously precarious game for retail investors. Indeed, when founders or historical investors decide to unlock their token reserves, devastating selling pressure occurs. Prices then fall, turning these small crypto investors into real scapegoats.
Projects like DYDx in the past, or more recently Altlayer, Pixels and ApeCoin, perfectly illustrate these abuses. With a circulating supply of less than 10% at launch, DYDx was able to maintain its price above $20 for many months before the inevitable collapse. A typical scenario that is constantly repeated to the detriment of novice crypto investors.
2024, the year of all risks for altcoins
Unfortunately, this year 2024 is shaping up to be a real nightmare for the alternative crypto ecosystem. Indeed, the volume of tokens unlocked is expected to reach a stratospheric level of $44 billion according to estimates. An unprecedented flood!
Starting in June, billions of Altlayer (ALT), pixels (PIXEL) and ApeCoin (APE) tokens will be released, exposing these projects to immense correction risk. But according to famous analyst Alex Wacy, this is just the beginning. He warns that a significant amount of tokens will enter the crypto market this year. Without sufficient capital inflows, selling pressure could increase significantly for many altcoins.
To survive this $44 billion deluge, investors Increased caution and agility will be required in 2024. Taking an ultra-selective approach will be key to avoiding the worst investor pitfalls amid the onslaught of emerging altcoins. Monitoring liquidity levels and unlock schedules for each crypto will be essential to emerging victorious in this high-risk environment.
Maximize your Cointribune experience with our “Read to Earn” program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning benefits.
Click here to join “Read to Earn” and turn your passion for crypto into rewards!
Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.