Crypto: Investors are in danger!

Crypto investors face a formidable challenge in 2024. According to analysts, no less than 44 billion dollars of previously locked altcoin tokens will be released onto the markets in the coming months. An astronomical figure that could destabilize a large number of alternative projects. Indeed, this massive influx of new cryptocurrencies in circulation threatens to crush prices under unrelenting selling pressure.

Crypto: The pitfalls of low-supply altcoins

From the outset, it is clear that alternative cryptos exhibit a significantly higher risk profile compared to heavyweights like Bitcoin or Ether. The reason? Many alternative tokens deliberately choose to start with an abnormally low circulating supply. A controversial strategy aimed at artificially inflating overall market value.

But this tactic proves to be a dangerously precarious game for retail investors. Indeed, when founders or historical investors decide to unlock their token reserves, a devastating selling pressure occurs. Prices then plummet, turning these small crypto investors into real scapegoats.

Projects like DYDx in the past, or more recently Altlayer, Pixels, and ApeCoin, perfectly illustrate these drifts. With a circulating supply of less than 10% at launch, DYDx was able to maintain its price above 20 dollars for long months before the inevitable collapse. A typical scenario that repeats endlessly to the detriment of novice crypto investors.

2024, the year of all risks for altcoins

Unfortunately, this year 2024 promises to be a veritable nightmare for the ecosystem of alternative cryptos. Indeed, the volume of unlocked tokens is expected to reach a stratospheric level of 44 billion dollars according to estimates. An unprecedented deluge!

Starting in June, billions of Altlayer (ALT), Pixels (PIXEL), and ApeCoin (APE) tokens will be released, exposing these projects to immense risk of correction. But according to the renowned analyst Alex Wacy, this is just the beginning. He warns that a significant amount of tokens will enter the crypto market this year. Without sufficient capital inflows, selling pressure could increase considerably for many altcoins.

To survive this 44 billion dollar deluge, investors will need to exercise heightened caution and agility in 2024. Adopting an ultra-selective approach will be essential to avoid the worst investor traps among the onslaught of emerging altcoins. Monitoring liquidity levels and unlocking schedules for each crypto will be key to coming out on top in this high-risk environment.