Investors within the cryptocurrency sphere are frequently on the lookout for lucrative investments, yet they must tread carefully due to the inherent risks. A notable example of such risk involves the scheduled release of tokens for certain cryptocurrencies, which can lead to increased market volatility. This report focuses on three specific altcoins that are poised for notable token unlocks, advising traders to exercise caution.
Caution Advised for Sui Network Trading
The Sui Network (SUI) is expected to release over 34 million SUI tokens, valued at around $57 million, which equates to nearly 3% of its current circulating supply. The release, part of the community access program, may result in substantial selling pressure due to the tokens being made available through public sales on various exchanges. Market participants are urged to be vigilant and consider refraining from Sui Network transactions this week.
GAL Token Release Could Pressure Prices
Another cryptocurrency facing a significant token unlock is Galxe (GAL), with an impending release equivalent to $7.03 million. This release, conducted by the project’s team and foundation, could potentially lead to a downward push in the token’s price, particularly as community allocations are also involved. Given these conditions, analysts recommend that traders avoid engaging with Galxe during this period.
Approach Hashflow with Caution
Lastly, the decentralized exchange protocol Hashflow (HFT) is set to unlock 13.62 million HFT tokens, which represents a market value of $6.37 million. Though the majority of this distribution is earmarked for the core team and ecosystem growth, the element of community incentives requires attention. Consequently, experts suggest staying away from trading Hashflow in the short term.
Given the unpredictable nature of the crypto market, it’s prudent for investors to take heed of these upcoming developments and plan their trading strategies accordingly.