Investors are getting a baptism of fire regarding tokenomics and unlocks. Sophisticated market actors understand flows, and smaller investors are having to learn quickly. Bearish flows are investor and team token unlocks, existing token holders waiting to exit, and inflationary token emissions. Bullish flows are new holders (fresh capital) and token sinks.
Major token unlocks have dragged down the altcoin market rally as supply increases outpace demand. But how can investors navigate these markets? Are presales a safer bet? Galaxy Fox ($GFOX) has risen as a top crypto to invest in due to its aggressive deflationary tokenomics offering a panacea in a sea of inflationary emissions and unlocks.
Understanding Token Unlocks
Token unlocks represent the most significant bearish flow for altcoins. Markets operate on the basic principle of supply and demand, and when a fresh wave of supply is introduced but no corresponding demand, it leads to a dump.
Large altcoins like $DYDX, $OP, $SUI, $AXL, and $1INCH have token unlocks in the coming weeks, increasing the total supply by almost $650 million. $650 million of sell pressure that markets will have to absorb.
Crypto is a wonderful financial technology, and tokens allow for genuine decentralization and ownership for smaller participants. At the same time, tokens have given VCs an excellent way to dump on retail. The disruption of the altcoin rally comes from these major unlocks, and it is early VCs and investors using the opportunity to absorb value from smaller market participants.
The influx of sell pressure will dampen the altcoin market mood. But what crypto to buy to avoid these massive gluts of supply? One innovative strategy investors can employ is to participate in presales. This way instead of being dumped on by VCs, they enter projects at the same stage as VCs.
Presales are a novel advantage crypto offers retail and an opportunity investors would be foolish to miss. The current hottest presale is Galaxy Fox, and experts are already calling $GFOX the top crypto to invest in due to its amazing deflationary tokenomics structure.
Galaxy Fox’s ($GFOX) Bulletproof Tokenomics
Galaxy Fox is a play-to-earn token that has forced investors to pay attention due to its resounding success in early-stage funding. Flying past $350,000, this ICO is teaching the market what it means to be an up-and-comer.
The basic premise underlying Galaxy Fox is a Web3 runner game housed inside a rich and elaborate ecosystem that unlocks passive income for all token holders. The most skilled players earn prizes at the end of each season, and all owners of $GFOX earn around the clock.
Staking rewards are paid to investors periodically, and one nuanced element of this protocol is that buy and sell taxes fund these rewards. This has two key advantages for stakers. First, no inflationary token emissions acting as a bearish flow. Second, rewards directly correlate to ecosystem growth. The larger Galaxy Fox grows, the more bountiful staking rewards will become.
Imagine the rewards for stakers when $GFOX is a widely adopted Web3 currency! No wonder it is being called a top crypto to buy in 2023.
How $GFOX Accrues Value for Token Holders
$GFOX’s tokenomics put it leagues ahead of its competition- particularly the supply of tokens released at the TGE (80%). Early investors do not have to worry about supply shocks like the token unlocks currently killing the altcoin rally. The bulk of $GFOX tokens will already exist, with the majority going to presale participants.
Add in the protocol’s burn mechanism, which steadily reduces the total supply, and Galaxy Fox has introduced a deflationary asset that produces yield to DeFi. $GFOX has both indirect and direct value accrual mechanisms explaining the presale’s breakout success.
Closing Thoughts: New Protocols Good Old Protocols Bad
General wisdom dictates that investors who buy new tokens will outperform those who buy old tokens. Market flows are the logic underpinning this. As seen with leading alts, all old protocols still have huge unlocks looming, waiting to dampen rallies. Whereas new protocols do not.
Participate in the Galaxy Fox presale today and discover why it has been called the top crypto to invest in before 2024. A total absence of bearish flows and huge growth ahead makes this nascent P2E token one of 2023’s most exciting opportunities. Don’t let this chance pass you by!
Learn more about $GFOX here:
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Source: https://coinpedia.org/press-release/major-token-unlocks-drag-down-altcoin-market-rally-are-presales-safer-bet/