This week, $57 million worth of tokens from various projects will be introduced into the circulating supply. dYdX will unlock tokens worth over $12 million.
When a project releases its tokens, some early investors, participants of the pre-seed rounds, team members, and developers cannot sell their holdings in the open market. Those tokens remain locked for a specific vesting period.
But after unlocking, the holders can sell their tokens in the open market. At times, due to increased selling pressure, the price of those tokens might go down.
Supply Pressure Worth Over $57 Million Through Token Unlocks
According to TokenUnlocks, over $57.7 million worth of tokens will be released for circulation during the week through cliff unlocks. While there will be linear unlocks of $21.9 million worth of cryptocurrency per day.
A cliff unlock is when the project introduces a huge supply in the circulation of the tokens in a single day. Whereas linear unlocks are the daily unlocking of a fixed supply for a specific period.
For run down of the latest token unlocks, click for our Learn guide
While there are multiple small unlocks during the week, dYdX, Hashflow, and Hop Protocol will add a minimum supply worth $1 million each.
dYdX $12.8M Unlock
As of writing, the dYdX token unlock is less than an hour away (15:00UTC). It’s a cliff unlock event, wherein $12.8 million worth of tokens will be introduced in the circulating supply. The unlocks make up 0.652% of the total supply.
The market might have reacted to the upcoming unlocks, as the token has been down by about 9.36% in the past 24 hours.
Hashflow (HFT) will unlock 0.3% of its total supply, worth over $1.3 million, at around midnight Tuesday hours. Similar to dYdX, the HFT token is also down by around 9.16% in the past 24 hours.
Lastly, Hop Protocol (HOP) will introduce 20 million tokens in the circulating supply on Friday. That makes up 2% of its total supply. And, as of current prices, tokens worth around $1.4 million will be unlocked.
Got something to say about this article or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
Source: https://beincrypto.com/token-unlocks-scheduled-this-week/