The latest crypto platform to unlock tokens this week is the decentralized builder economy project BitDAO. Unlike some of its peers, its native token BIT has held steady throughout the process.
On Feb. 14, BitDAO unlocked 187.5 million BIT tokens as part of its scheduled release program. At prices at the time, the token unlock was valued at around $106 million.
Furthermore, the unlock represented around 2% of the entire supply of BIT tokens. The next unlock is scheduled for March 15.
The BitDAO unlock schedule plans to release a similar number of tokens every month until June 2024. This trickle-feeding of assets aims to align investor interests but often causes short-term price volatility.
When large chunks of tokens flood the markets, it increases the circulating supply, decreasing demand and, consequently, the asset price. Additionally, this effect is much more prominent in a bear market.
BitDAO Building Decentralized Economy
BitDAO is a platform that aims to support builders of the decentralized economy. It is an “open platform for proposals that are voted upon by BIT token holders, and is agnostic to chains and projects,” according to the official docs.
The tokenomics of its governance token, BIT, are not as venture capital controlled as other crypto projects. Currently, around 70% of the total supply of 10 billion tokens is unlocked, but not all are in circulation. The 1.16 billion tokens circulating gives it a market capitalization of around $661 million.
Around 45% of the entire supply will be released over the next 16 months. Furthermore, 30% of the total is allocated to the BitDAO treasury for governance purposes.
On Feb. 14, BitDAO detailed its latest governance vote and funding request. Mantle is a BitDAO product that offers a high-performance Ethereum layer-2 network with a modular design.
Furthermore, the next major project to release tokens is ApeCoin later this week.
Price Outlook
Unlike the dumps for The Sandbox and dYdX following their token unlocks yesterday, BIT prices have held gains.
As a result, BIT prices were up 1.2% on the day, trading at $0.569 at the time of press. However, the token did dump 6% yesterday before the unlock event.
BIT prices have gained 8% over the past fortnight, bucking the broader market trend, which has been down. However, the governance asset is trading down 81.6% from its November 2021 all-time high of $3.10.
Disclaimer
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
Source: https://beincrypto.com/bitdao-bit-prices-hold-steady-following-106m-token-unlock/