Traders who are focused on token unlocks make HUGE PROFITS! This month, 3 big projects from the Top 30 cryptos are about to unlock a huge number of tokens. Which are these projects? What should you do? Buy? Sell? Short? Just Avoid?
Can you play it to make big profits? Well stick around and find out all the answers. And don’t miss the end of this article because I will share the entry point about tokens that 4x in the month of April.
How to Play the Unlocks and Biggest of the Month?
First, how do you play token unlocks? Conventional wisdom says that the increased selling pressure means the token will drop in price. But that doesn’t always happen. But if it does, you can trade the token unlocks in the following 3 ways:
- Sell a week or two before the unlock or at a recent high before the unlock and wait to buy back later. Other than having to declare your profits for tax reasons, this is probably the most conservative approach and the one most of us should follow. That’s if you have a position in the coin already.
- Wait AFTER the token lock and buy. This is conservative too if you don’t have a position in the token going into the unlock. You might just get to buy a project you like at a discount. Others could become short or medium-term trading opportunities with a good entry price.
- Short the token into the unlock. This is the most aggressive strategy. Only experienced traders should do this. But you could buy back post unlock for less and make a profit.
Now for our biggest unlock of the month. Layer 2 protocol, Optimism. By the numbers:
- Token: OP.
- Date of Unlock: May 30th.
- Amount: $324 million.
- % of Supply: 3.6% of the total supply.
Today is a major milestone for decentralized identity in the Optimism ecosystem: the AttestationStation has been upgraded to the EAS standard, giving developers one common standard for issuing & reading attestations that interoperate across the ecosystem.https://t.co/rj6jS3D3v6
— OP Labs (@OPLabsPBC) May 4, 2023
That’s the biggest. Now, let’s check the others. And before we do, do you have any Optimism or other Layer 2’s tokens in your portfolio? Let us know which ones you like in the comments below.
The Best of the Rest of the Unlocks
Before getting into the best of the rest, let’s see what’s happened recently. For example, in early May, here are 3 unlocks:
- 1inch on May 2nd for a very small amount, under $32,000.
- Nym on May 2nd for $15.2 million.
- GMX on May 8th for $52,000 per day on a linear unlock.
And how did they do post-unlock? We can see that 1inch dipped slightly from 46c to 44c and is almost back to 46c again. Basically no effect. Nym basically has no effect and is at ~21 cents too. And GMX is only facing small downward price pressure. But remember, they are unlocking every week in a linear way. So this means they are unlocking both profitable and unprofitable weeks of trading.
Now for the rest of the month, we have the biggest by percentage here:
- Token: Aptos (APT)
- Date: May 11th.
- Amount of Unlock: $44.7 million
- % of total supply: 0.5%
- Token: BitDAO (BIT)
- Date: May 15th.
- Amount of Unlock:$90 million.
- % of total supply: 2%
- Token: Hedera (HBAR)
- Date: May 31st.
- Amount of Unlock:$74 million.
- % of total supply: 2.5%
Top 7 Upcoming Token Unlocks in May
The tokens of the following projects with the highest unlock amount will be unlocked in May: $OP ($324.7M), $AVAX ($158.5M), $BIT ($90.2M), $APE ($60M), $APT ($44.8M), $IMX ($16.9M), $GAL ($12.9M).
— CryptoRank Platform (@CryptoRank_io) May 2, 2023
Now here are some of the biggest tokens by Dollar volume:
- Token: Avalanche (AVAX).
- Date: May 27th.
- Amount of Unlock: $159 million.
- % of total supply: 1.3%
- Token: Apecoin (APE)
- Date: May 16th.
- Amount of Unlock:$59.9 million.
- % of total supply: 1.6%
- Token: ImmutableX (IMX)
- Date: May 20th
- Amount of Unlock:$16.8 million.
- % of total supply: 0.9%
- Token: dydx
- Date: May 9th.
- Amount of Unlock:$15.8 million.
- % of total supply: 0.7%
- Token: Ronin (RON)
- Date: May 26th.
- Amount of Unlock:$14.1 million.
- % of total supply: 1.5%
- Token: Oasis Network (ROSE)
- Date: May 18th
- Amount of Unlock:$11.8 million
- % of total supply: 2.0%
- Token: Trader Joe (JOE)
- Date: May 2nd.
- Amount of Unlock: A drop in the daily unlocks from $56,000 per day to $46,800 per day.
- % of total supply: With less than 3% of the total supply still locked up.
Biggest Upcoming Token Unlocks in May (Part 1)
Monitoring of vested tokens and future unlock events is an important step to make more cautious and, in the end, better investment and trading decisions. Let’s take a look at some massive unlocks coming in May, including $APT, $GMT,… pic.twitter.com/MzBoqkouwI
— TOP 7 ICO | #StandWithUkraine🇺🇦 (@top7ico) May 1, 2023
And how did JOE do after this drop in the daily unlock? Even though the amount of the unlock is dropping, which is better for holders, Trader Joe is down since this unlock value changed. But after a recent high of 70c in mid-April, traders have been taking profits all the way down to 40c.
Then again, if you think this is a bargain price for JOE, a move back up to 70c is a 75% ROI and obviously very doable. So not all tokens see selling pressure from a token unlock. But it’s important to know when they are coming for the projects you follow. And in some cases like Trader Joe here, it could be a nice entry point to make a buy.
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