Three Cryptocurrencies to Steer Clear of Trading This Week

A current wave of enthusiasm is building up within the digital currency landscape, propelled by a blend of market analysis tools, widespread adoption stories, and evolving regulatory frameworks. However, three specific cryptocurrencies are poised for inflationary pressures, and it is advisable to steer clear of trading these assets during the expected sell-offs next week.

An extraordinary token release event is on the horizon this week, with an unlocking value exceeding $1.4 billion, outstripping standard weekly unfreezing occurrences. Insights were compiled on May 12 by Finbold from TokenUnlocksApp to aid digital asset traders in their risk management as they navigate these market dynamics.

On the flip side, bullish divergences are on the rise across various metrics for numerous cryptocurrencies, presenting attractive entry points for astute market participants. Investors should evade focusing on tokens undergoing significant release events to stay away from missing out on considerable gains, demanding judicious examination and strategic planning.

Token Unveiling for Aevo (AEVO): $1 Billion Worth

In an unexpected development, Aevo (AEVO) is set to release a staggering 827.6 million tokens on May 15, equating to a value of $1.02 billion. This massive unlocking event stands out as one of the most sizeable on record. Additionally, it constitutes almost 8 times the existing circulating total of 110 million AEVO tokens.

This event will prompt a 752.4% inflationary spike in the Aevo project overnight, which could significantly depress the token’s price during the week of the release, positioning AEVO as a cryptocurrency to bypass in trading circles for the month of May.

The DAO’s treasury will be allocated $414 million in tokens. Following that, $264.5 million worth, or 215.04 million AEVO, will be distributed to the team, while initial private sale backers are set to receive $212.75 million worth of the tokens for potential sale.

Caution Advised for Aptos (APT) and Arbitrum (ARB) Trading

Next week, traders are advised to exercise caution with Aptos (APT) and Arbitrum (ARB), as these two tokens will also undergo significant unlocking events, each unleashing nearly $100 million in value, representing substantial economic influxes.

Specifically, Aptos is slated to unfreeze 11.31 million APT tokens valued at $94.55 million today (May 12), which accounts for 2.6% of its total market cap. Recipients include the Foundation, community members, significant contributors, and backers.

Finally, Arbitrum is anticipating a 3.5% inflation in its total token supply on May 16, corresponding to $92.44 million in token value. The team, its future members, and advisors are the recipients of 56.13 million ARB, worth $56 million, while investors will receive 36.51 million ARB, valued at $36.44 million.

Nevertheless, despite the influx of substantial token supplies, these assets might still manifest positive price action in the ensuing days. The crypto space is notorious for its volatility, and outcomes contrary to economic expectations can occur.

Accordingly, the recommendation to forego trading these particular digital assets this week is a component of a comprehensive risk management approach, though no outcomes are unequivocally assured.

Disclaimer: The information provided on this site does not constitute investment counseling. The nature of investments is speculative, and it is important to note that there is a risk involved with investing your capital.