Avoid Trading These 3 Cryptocurrencies Next Week Due to Upcoming Token Unlocks and Sell-Offs

Experienced cryptocurrency market participants closely monitor factors like demand and supply dynamics about the tokens and assets they are trading. By considering these dynamics, investors can make well-informed decisions that maximize profitability while effectively managing associated risks.

Finbold has highlighted three cryptocurrencies that traders may want to avoid trading next week due to substantial token unlocks and sell-offs, which could lead to increased selling pressure and significant price fluctuations.

Experienced cryptocurrency market participants pay close attention to factors such as demand and supply dynamics regarding the tokens and assets they are trading. By considering these dynamics, investors can make well-informed decisions that maximize profitability while effectively managing the associated risks.

In particular, data from TokenUnlocksApp shows potential sell-offs amounting to $164.76 million over the next seven days, starting from June 7. The two largest unlocks will occur on June 12 and June 14, releasing a combined total of $160.41 million worth of tokens. These two massive releases account for 97.5% of the total amount unlocked by six projects this week.

Aptos (APT) to unlock 11.31 million APT

First up is Aptos (APT), a layer-1 blockchain developed by former Meta (NASDAQ: META) engineers, which will see 11.31 million APT tokens, valued at $103.48 million, being unlocked. The Foundation will receive a smaller portion of the unlock, with 1.33 million tokens, which are currently worth $12.20 million.

Community and Core contributors will receive 3.21 million and 3.96 million tokens, respectively, totaling $65.59 million. Investors, on the other hand, will realize $25.69 million with sales of 2.81 million APT.

The total unlock will increase Aptos' circulating supply by 2.6% on June 12, which is likely to create a huge selling pressure.

ImmutableX (IMX) to inflate circulating supply by 1.7%

ImmutableX (IMX) is the second cryptocurrency to avoid trading due to a significant unlock that will inflate its circulating supply by 1.7% on June 14. Specifically, 25.53 million IMX tokens will be released for ecosystem development and project development.

The $56.93 million will be fully managed by the team, which represents a proportionally high share of centralized capital.

Avoid trading XRP amid Ripple sell-offs

From another perspective, Ripple has already unlocked 1 billion XRP in June and reserved 200 million tokens out of this total, plus an extra 200 million, to sell this month.

As reported by Finbold, the company has already moved 150 million XRP, which may soon land in crypto exchanges. With another 250 million tokens in its treasury account, Ripple's activities could also create a strong selling pressure on the cryptocurrency.

However, crypto traders will try to speculate on the economic effects these unlocks and sell-offs may have on price, which could bring increased 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.