Optimism is rising on the cryptocurrency horizon, fueled by a mixture of technical indicators, adoption news, and regulatory developments. Yet, three cryptocurrencies will experience inflationary events, and speculators should avoid trading them next week during likely sell-offs.
A massive token unlock event—worth over $1.4 billion — is incoming this week, far larger than the usual seven-day cliff unlocks. Finbold gathered data from TokenUnlocksApp on May 12 to provide proper risk management insights to cryptocurrency traders navigating the market.
Conversely, bullish divergences have surged in different indicators for most cryptocurrencies, creating good opportunities for savvy investors. Thus, focusing on tokens going through significant emissions exposes traders to colossal opportunity costs, requiring thoughtful analysis and planning.
Aevo’s (AEVO) $1 billion token unlock
First, Aevo (AEVO) will shockingly unlock 827.6 million tokens on May 15, worth $1.02 billion. This is one of the largest unlocks reported by the platform. Moreover, it represents nearly 8 times the token’s circulating supply of 110 million AEVO.
As a result, the project will suffer 752.4% inflation in a single hit. This could drastically impact Aevo’s price in the week of the unlock, making this a cryptocurrency to avoid trading in May.
The DAO treasury will receive $414 million in tokens. Next, the team will receive 215.04 million AEVO, worth $264.5 million, and initial private sale investors will receive $212.75 million to sell.
Avoid trading Aptos (APT) and Arbitrum (ARB)
The two other cryptocurrencies to avoid trading next week due to relevant token unlocks are Aptos (APT) and Arbitrum (ARB). Each project will release nearly $100 million worth of tokens, which is also a relevant amount from an economic perspective.
In particular, Aptos will unlock 11.31 million APT today (May 12), worth $94.55 million and representing 2.6% of its market cap. Receiving entities are the Foundation, community, core contributors, and investors.
In closing, Arbitrum will inflate its supply by 3.5% on May 16, unlocking $92.44 million worth of tokens. The team, “future team,” and advisors will receive 56.13 million ARB, valued at $56 million, while investors will receive 36.51 million ARB, valued at $36.44 million.
However, despite significant supply inflation, these tokens could still display positive price performance in the next few days. The cryptocurrency market is unpredictable, and everything can happen, even in unfavorable economic conditions.
Therefore, the decision to avoid trading these cryptocurrencies this week assumes a solid risk management strategy, but nothing is guaranteed.