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3 cryptocurrencies to avoid trading next week

Poloniex hack: 3 cryptocurrencies to avoid trading next week

In the volatile cryptocurrency market, savvy traders know that identifying which cryptocurrencies to avoid trading can be just as crucial as pinpointing profitable investments. 

Particularly, this week was doomed with the shocking Poloniex Hack event, responsible for over $122 million stolen from Justin Sun’s cryptocurrency exchange.

Out of hundreds of the tokens now sitting in the hacker’s crypto wallet, three of them offer higher peril for cryptocurrency trading and should be avoided next week until things settle down.

Essentially, the following tokens have a higher weight of stolen capitalization against each of their market cap at the time of publication. In this context, a sell-off would be more impactful for these projects if the “Poloniex Hacker” manages to liquidate them.

Most affected cryptocurrencies by the Poloniex hack to avoid trading next week

Finbold looked into the stolen assets mapped by Arkham Intelligence and picked the three larger positions by the Poloniex Hacker, adjusted by their market caps.

Open Exchange Token (OX)

The Open Exchange Token (OX) is the 5th higher stolen value in dollars in the Poloniex hack. Notably, the hacker holds 197.75 million OX, worth $2.83 million by press time.

OX in the Poloniex hacker address. Source: Arkham Intelligence
OX in the Poloniex hacker address. Source: Arkham Intelligence

This amount corresponds to 7% of the token’s market capitalization of $40.47 million, according to CoinMarketCap. Interestingly, the same exchanged volume for OX in the last 24 hours represents a relevant weight that threatens its holders.

OX market stats. Source: CoinMarketCap

Floki (FLOKI)

Floki (FLOKI) is another cryptocurrency to avoid next week following the Poloniex hack. A total of $814,110 worth of FLOKI was stolen on Friday and could be dumped at any time by the red hat.

FLOKI in the Poloniex hacker address.
FLOKI in the Poloniex hacker address. Source: Arkham Intelligence

Meanwhile, Floki is trading at a $285.50 million market cap with a $45.95 million volume intraday. The market’s perception and fear can also affect its performance in the following days.

FLOKI market stats. Source: CoinMarketCap

Saitama (SAITAMA)

At last, Saitama (SAITAMA) is another low-cap digital asset traders should avoid in the following week due to Poloniex’s robbery. SAITAMA has a $43 million market cap and a shy $488,939 24-hour volume.

SAITAMA market stats. Source: CoinMarketCap

This means that the 271.85 million SAITAMA, worth $265,420 USD, represents more than half of its total volume and 0.6% of Saitama’s market capitalization.

SAITAMA in the Poloniex hacker address.
SAITAMA in the Poloniex hacker address. Source: Arkham Intelligence

However, Justin Sun is partnering up with other centralized and decentralized exchanges to mitigate the possible effects of the hack. With that, these institutions aim to limit the hacker’s capacity to liquidate de stolen tokens from Poloniex.

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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