3 cryptocurrencies to avoid trading next week

As cryptocurrency markets undergo corrections, several digital assets present investment opportunities, particularly for those looking to buy in at lower prices.

However, this strategy does not apply to all assets, as some may face heightened volatility in the coming week. 

Notably, select cryptocurrencies are set for significant token unlocks, historically impacting price dynamics.

Generally, token unlocks increase the circulating supply, potentially leading to downward price pressure. As a result, Finbold has identified the following three tokens to avoid trading in the coming week:

Aptos (APT)

The Aptos (APT) network is scheduled to conduct an unlock on September 12, releasing 11.31 million tokens into the market. This figure represents 2.32% of the asset’s market cap of $65.57 million. Currently, around 34.6% of the total supply (385.55 million APT) is unlocked, while 55.1% remains locked.

Aptos upcoming token unlock.Source: CryptoRank

It’s worth noting that Aptos’ price movement has remained subdued despite recent notable developments. For instance, during the Aptos Experience at Korea Blockchain Week, the platform partnered with Arculus, a digital security platform, to create an Aptos card that enables tap-to-pay functionality—a move that could enhance the token’s utility.

As of press time, Aptos was trading at $5.78, reflecting daily losses of over 1%, while APT has dropped 14% in the past week.

APT seven-day price chart. Source: CoinMarketCap

Conflux (CFX)

Although Conflux (CFX) has been in the news due to potential high-profile partnerships, the token remains susceptible to price swings ahead of ts September 9 unlock.

This event will release 2.01% of the token’s market cap, equivalent to $10.95 million or 87.49 million CFX. Currently, 85.5% of the total supply (4.34 billion CFX) is already in circulation, with 4.74% (262.46 million CFX) still locked. 

This unlock comes as CFX is undergoing a significant price correction. In the long term, prospects for Conflux remain bullish, particularly after the platform and Alibaba Cloud teamed up to drive Web3 solutions across industries like retail, tourism, entertainment, arts, and education.

At the time of reporting, CFX was valued at $0.125, having dropped by over 7% in the last seven days.

CFX seven-day price chart. Source: CoinMarketCap

Cheelee (CHEEL) 

Cheelee (CHEEL) is another token that has seen a sustained release of unlocked tokens in recent months. 

The network is preparing for another unlock on September 10, which will release about 11.66 million CHEEL into the market, representing 21% of its current market cap.

Cheelee upcoming token unlock.Source: CryptoRank

Additionally, the planned unlock coincides with a moment CHEEL is struggling to break through key resistance levels. Notably, the coin is aiming to reclaim the $20  spot, and if successful, it could potentially lead to a breakout.

CHEEL seven-day price chart. Source: CoinMarketCap

In summary, the highlighted cryptocurrencies pose increased risks for investors, especially as the market is experiencing a notable outflow of capital. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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