The crypto ecosystem has different types of coins that are categorized according to their products, chains, focuses, and several other branches. What gets them together is their previous experience in the recent bull market. If a coin has already been pumped hard, then the investors look for a similar project that has the same potential rather than supporting a solid project.
The mentality in crypto has never been earning sound money with time and effort. Rather, people see crypto as the place where they can take unnecessarily high risks to multiply their initial deposit within a short time. Actually, unless you jump into the train in the last carriage or get rugged, it is pretty likely in the hard pumps.
In this risky atmosphere, everyone looks for the same gems: The 100x projects!
But first, let's listen to what Token Unlocks has to say.
For now, some coins are being discussed and the majority consists of 2022-2023 tokens that have never seen any bull cycle. The expectation is a massive pump on the charts when the market turns permanently green.
Arbitrum's Risky Unlocks
The tokenomics is everything for a project. If it is not created wisely, it may bring a lot of trouble even if everything starts perfectly.
Here we need to focus on what risks are in the tokenomics:
In 185 days, around 25% of ARB supply will be released.
This is seen as s huge risk for investors especially when we look at the value of the tokens that might be dumped on the market. Investors were allocated 17.5% of the total supply and team gets 1/4 of it.
The numbers are absolutely discomforting.
Optimism's Risky Unlocks
On the side of Optimism, the situation is a bit different. Half of the token is untrackable and the coin does not have a certain day to increase the inflation by 25% but it has a consistent sell pressure (around 3%) in its emission plan.
The majority of the token is allocated to the community. under different groups in funds and investors get 21% of the total supply. I think 1/6 is a big portion of the project.
Only 17% of OP token has been unlocked. This is a threat against your investment for sure.
SUI's Risky Unlocks
Only 8% of SUI is in circulation for now. However, this will not be the case as of 2024!
SUI suffers from a high potential dump due to the sudden inflation that the project will experience.
Actually, I do not put more money in SUI majorly because of that risk that we are discussing.
The unlocks are too steep and seem unreasonable to me. It is still a good project but we need to wait for the unlock time to dive into it thoroughly. Meanwhile, the devs are rewarding the community for their engagement but there is hardly any buy pressure on the coin while we can count several factors to push the price lower.
APTOS' Risky Unlocks
Aptos shares a similar problem with the other hyped coins.
Only 18% of APT is in circulation and take a look at the upcoming waves of inflation on Aptos.
Though this is a strong project like SUI, they are heavily influenced by the negative perception of the investors. They need time to get more mature as far as what I see.
Meanwhile, I will never leave them behind but the amount of money put on Aptos will always be very limited, too.
Even when these coins come up with a new narrative, the pressure on them is too strong. I follow my DCA strategy but never for the risk that sleeps on the blockchain.
What do you think about the unlocks?
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