Three Cryptocurrencies to Steer Clear of Trading This Week

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<p class="paragraph">Finbold has highlighted a trio of <a target="_blank" href="https://finbold.com/cryptocurrencies/" target="_blank" rel="noreferrer noopener">cryptocurrencies</a> that traders might be wise to exclude from their portfolios in light of impending voluminous token releases. Such events could inject a large quantity of tokens into the market, potentially triggering a surge in selling activity and considerable price swings.</p>
<p class="paragraph">Astute players in the <a target="_blank" href="https://finbold.com/category/cryptocurrency-news/" target="_blank" rel="noreferrer noopener">cryptocurrency arena</a> give special attention to variables like the token's supply-demand balance to shape their trade tactics and minimize financial setbacks. In considering these factors, they are better equipped to take actions that not only bring financial gains but also judiciously control underlying risks.</p>
<p class="paragraph">Specifically, information gathered from <a target="_blank" href="https://token.unlocks.app/" target="_blank" rel="noreferrer noopener nofollow">TokenUnlocksApp</em> indicates an imminent risk of roughly $373.11 million worth of <a target="_blank" href="https://finbold.com/topic/selloff/" target="_blank" rel="noreferrer noopener">sell-offs</a> over the ensuing week starting May 25. The prime contributory unlocks are slated for May 31 and June 1, which alone will account for the release of tokens valued at $219.67 million.</p>
<figure class="wp-block-image size-full"><img decoding="async" width="984" height="476" src="https://assets.finbold.com/uploads/2024/05/token-unlocks-avoid-trading.jpg" alt="" class="wp-image-178332" srcset="https://assets.finbold.com/uploads/2024/05/token-unlocks-avoid-trading.jpg 984w, https://assets.finbold.com/uploads/2024/05/token-unlocks-avoid-trading-300x145.jpg 300w, https://assets.finbold.com/uploads/2024/05/token-unlocks-avoid-trading-768x372.jpg 768w" sizes="(max-width: 984px) 100vw, 984px"/><figcaption class="wp-element-caption">Projected token unlocks in the following week. Source: <em>TokenUnlocks.App</em></figcaption></figure>
<h2 class="wp-block-heading" id="h-avoid-trading-optimism-op">Cautions on Trading Optimism (OP)</h2>
<p class="paragraph">Investors are advised to steer clear of trading Optimism (<a target="_blank" href="https://finbold.com/cryptocurrency/optimism/" target="_blank" rel="noreferrer noopener">OP</a>), an acclaimed layer 2 solution for Ethereum (<a target="_blank" href="https://finbold.com/cryptocurrency/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>), in anticipation of a potential dump. On May 31, about 31.34 million OP tokens, presently holding a $80.23 million valuation, are due for release.</p>
<p class="paragraph">This upcoming Optimism unlock signifies almost 3% monthly increase in the token supply, recurring with minor variances, something Finbold has <a target="_blank" href="https://finbold.com/3-cryptocurrencies-to-avoid-trading-in-mays-first-week/" target="_blank" rel="noreferrer noopener">previously noted</a>. The main beneficiaries include core contributors and private investors, set to gain 16.54 million OP (worth $42.35 million) and $37.89 million respectively, surpassing retail investors in terms of the benefit from the unlocks.</p>
<figure class="wp-block-image size-full"><img decoding="async" width="684" height="396" src="https://assets.finbold.com/uploads/2024/05/OP-avoid-trading-unlock.jpg" alt="" class="wp-image-178333" srcset="https://assets.finbold.com/uploads/2024/05/OP-avoid-trading-unlock.jpg 684w, https://assets.finbold.com/uploads/2024/05/OP-avoid-trading-unlock-300x174.jpg 300w" sizes="(max-width: 684px) 100vw, 684px"/><figcaption class="wp-element-caption">Schedule for OP token unlocks on May 31. Source: <em>TokenUnlocks.App</em></figcaption></figure>
<h2 class="wp-block-heading" id="dydx-protocol-dydx">Regarding dYdX Protocol (DYDX)</h2>
<p class="paragraph">Another candidate for cautious trading is the dYdX Protocol (<a target="_blank" href="https://finbold.com/cryptocurrency/dydx/" target="_blank" rel="noreferrer noopener">DYDX</a>). Its token unlocks have consistently placed it on Finbold's watch list, including those on <a target="_blank" href="https://finbold.com/3-cryptocurrencies-to-avoid-trading-in-mays-first-week/" target="_blank" rel="noreferrer noopener">April 27</a> and <a target="_blank" href="https://finbold.com/3-cryptocurrencies-to-avoid-trading-next-week-25/" target="_blank" rel="noreferrer noopener">March 31</a>, with prior unlocks amounting to $70.33 million and $117.33 million, respectively.</p>
<p class="paragraph">Notably, on <a target="_blank" href="https://finbold.com/3-cryptocurrencies-to-avoid-trading-next-week-21/" target="_blank" rel="noreferrer noopener">February 29</a>, there was an unlock of the same magnitude, valued then at $130 million. These events demonstrate the detrimental impact of supply expansion on token value, reinforcing the advisories against trading. The next unlock is due on June 1, adding another 33.34 million DYDX to the mix, with a current valuation of $70 million and accounting for a nearly 12% monthly supply jump, setting the current trading price at $2.10.</p>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="947" height="772" src="https://assets.finbold.com/uploads/2024/05/DYDX-6month-pricechart.jpg" alt="" class="wp-image-178334" srcset="https://assets.finbold.com/uploads/2024/05/DYDX-6month-pricechart.jpg 947w, https://assets.finbold.com/uploads/2024/05/DYDX-6month-pricechart-300x245.jpg 300w, https://assets.finbold.com/uploads/2024/05/DYDX-6month-pricechart-768x626.jpg 768w" sizes="(max-width: 947px) 100vw, 947px"/><figcaption class="wp-element-caption">DYDX price trajectory over the past six months. Credit: Finbold</figcaption></figure>
<h2 class="wp-block-heading" id="sui-network-sui">Reflection on Sui Network (SUI)</h2>
<p class="paragraph">Sui Network (<a target="_blank" href="https://finbold.com/cryptocurrency/sui/" target="_blank" rel="noreferrer noopener">SUI</a>), yet another digital currency warranting caution due to regular monthly token releases, could see a 2.8% increment in its token supply this month. Private investors, the Mysten Labs team, and its treasury will see a collective unlock of 65.08 million SUI on June 1st, with private holdings accounting for more than 60% of the $70 million total value of the tokens being unlocked.</p>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="684" height="684" src="https://assets.finbold.com/uploads/2024/05/SUI-token-unlocks-1.jpg" alt="" class="wp-image-178336" srcset="https://assets.finbold.com/uploads/2024/05/SUI-token-unlocks-1.jpg 684w, https://assets.finbold.com/uploads/2024/05/SUI-token-unlocks-1-300x300.jpg 300w, https://assets.finbold.com/uploads/2024/05/SUI-token-unlocks-1-150x150.jpg 150w" sizes="(max-width: 684px) 100vw, 684px"/><figcaption class="wp-element-caption">SUI token release details for June 1st. Source: <em>TokenUnlocks.App</em></figcaption></figure>
<p class="paragraph">Nevertheless, <a target="_blank" href="https://finbold.com/guide/cryptocurrency-trading/" target="_blank" rel="noreferrer noopener">cryptocurrency traders</a> may seek to capitalize on the potential impacts of these releases on the market value, potentially leading to heightened volatility and an uncertain cost-benefit balance. Given the unpredictable nature of the market, influenced by a multitude of factors, engaging in diligent risk management and recognizing when to abstain from trading certain tokens is paramount.</p>
<p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The information provided here should not be taken as investment counseling. Investment activities are speculative by nature and come with the possibility of capital loss.</em></p>  
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