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Bitcoin‘s (BTC) fourth block reward halving is expected to bring about a strong bull market. With this expectation, AirDrops have become popular again. AirDrops correspond to a process that can bring high returns to participants, and investors should stay away from some altcoins that have been recently launched through an AirDrop. The reason is the potential for large sell-offs in these altcoins in the short term, as early investors look to convert their unrealized gains into realized profits. We have compiled a list of altcoins released through AirDrops that should not be traded in the coming days.
Dymension (DYM)
Dymension‘s (DYM) AirDrop has attracted speculators and is currently trending due to the planned mainnet launch on February 6. At this point, the project is preparing to distribute a token called IOU through an AirDrop, not the actual native asset that will be launched on the mainnet.
Dymension, which carries more risk than the usual risks associated with trading a newly distributed token, could expose investors to liquidity risks as people will use the IOU synthetic asset for the real token.
Dymension’s IOU token is trading at $4.69 at the time of writing and has been rising relatively steadily since January 29. Despite this stable appearance, there is a risk of a crash after the mainnet launch of the altcoin.
Jupiter (JUP)
Jupiter (JUP) is another altcoin that has recently started to decline but is trending. Despite the trend, there are many reasons why investors should stay away from the altcoin in the coming days. In particular, JUP has retreated from its initial launch price of $1.27 to $0.63, a significant 50% drop, confirming this situation. JUP‘s price drop demonstrates what can happen with an altcoin released through an AirDrop.
Moreover, Jupiter has only distributed 13.5% of its total token supply through an AirDrop. This is a significant sign that the altcoin could be under more selling pressure in the future.
ZetaChain (ZETA)
Last on the list is ZetaChain (ZETA). ZetaChain is the third altcoin that should not be traded following the ZETA AirDrop. ZETA is currently trading in an upward trend, moving from $0.817 to $1.78 at the time of writing, but it now has a market value of $420 million, which is relatively high for a new altcoin project.
From this perspective, ZETA is one of the altcoins most likely to plummet sharply if AirDrop participants decide to turn their massive unrealized gains into realized profits.
