As Bitcoin approaches its fourth block reward halving, anticipation for a potential bull market surge is growing. Concurrently, the popularity of AirDrops, a method of distributing new altcoins, is on the rise. However, investors are advised to practice caution with certain newly launched altcoins that may face short-term sell-offs due to early investors cashing in. The discussion includes a list of altcoins from recent AirDrops that pose trading risks in the near future.
High Risk in Dymension’s Anticipated AirDrop
Dymension is set to distribute IOU tokens via AirDrop as a precursor to their mainnet launch. This move has garnered attention from speculators, despite the increased risk of liquidity issues that such IOU tokens present. Trading at $4.69, there is skepticism surrounding the token’s future post-mainnet launch.
The allure of Jupiter’s recent decline, despite being a trending altcoin, comes with a warning for investors. Following a 50% decrease from its initial price, Jupiter exemplifies the volatility that can afflict AirDrop-released altcoins. This could indicate future selling pressure, considering only a fraction of Jupiter’s tokens were distributed through the AirDrop.
ZetaChain’s Market Value Raises Concerns
ZetaChain also joins the list of altcoins to be approached with caution. After an AirDrop, ZETA’s price has shown an upward trend. Yet, with a substantially high market value for a new project, there’s a high potential for a steep decline if investors start to sell off their holdings.
Investors are reminded to stay vigilant as the environment around Bitcoin’s halving and the AirDrop phenomenon creates both opportunities and risks. While some altcoins may promise high returns, the potential for abrupt price drops remains a critical consideration.