Altcoins
THESE Altcoins Will Experience a Massive Crash This Week: Here’s Why
Analyst Altcoin Buzz sheds light on the often overlooked factor of token unlocking and their potential impact on cryptocurrency prices. With several major token unlocks planned for May, investors are advised to pay attention to these events in order to effectively strategize their portfolio management.
Why Token Unlock Timings Matter
In a recent video segment, he explained the importance of being aware of token unlock schedules, which are publicly available but often ignored by many investors. These unlocks, which involve the release into circulation of previously restricted tokens, can significantly affect market dynamics as investors, including project teams and early backers, may choose to sell their tokens, leading to fluctuations in value. price.
Token Unlocks Coming in May
The analyst highlighted four significant token unlock events planned for May, focusing on projects in the top 30 by market cap:
Aptos: Aptos is set to unlock 11.31 million APT tokens, valued at tens of millions of dollars. This event follows a structured monthly unlock schedule, with previous months witnessing significant token releases.
Aevo: Avo is preparing for a massive release of 8.13 billion tokens, worth over $1 billion, scheduled for mid-May. This event, which represents 80% of its total supply, should exert downward pressure on its price.
PYTH network: PYTH Network, a challenger to Chainlink in the Oracle space, is preparing to unlock 2.13 billion tokens, valued at over $1 billion. Despite its potential as a competitor, this significant unlocking could have a negative impact on its price.
Avalanche: avalanche, known for its fast and scalable blockchain, will see 9.54 million AVAX tokens put into circulation. Although previous unlocks had minimal impact on prices, this event could influence market sentiment.
While some projects may experience minimal price impact due to token unlocking, others, especially those with large releases, could face massive sell-offs, leading to a temporary price drop.
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