Total sell pressure exceeds 60 million euros! This week, 'these 3 types of coins' will be unlocked in large quantities, so be careful of the pullback risk.

Why does token unlocking have to be followed?

Are you unfamiliar with the term ‘unlocking’ in the cryptocurrency market? If you are an investor planning to delve deeper into the market, unlocking and the potential impact on token prices are events you must closely follow.

What is token unlocking? When a project issues native tokens, they are usually distributed to developers, early investors, etc. in proportion. This is the token distribution model. In order to avoid huge selling pressure on tokens at the start of the project, many projects set a ‘lock-up period’ to lock the tokens held by relevant personnel for a period of time, making them unable to trade immediately. Later, at a specific time point, these tokens will be partially unlocked, allowing holders to trade freely.

This is a mechanism to protect the price for the project, but for investors, a large amount of token unlocking may put pressure on the token price. For example, at the end of last year (2023), $DYDX unlocked tokens worth about 485 million US dollars, leading to a nearly 5% single-day price plunge, which continued for several days. However, there are also cases where the price did not fall as expected after the unlocking ended, but instead rose. Therefore, whether it rises or falls, investors need to conduct their own research.

After understanding the potential impact of unlocking, it is inevitable to introduce a useful tool - ‘Tokenomist (formerly Token Unlocks)’. This is a practical data provider website that allows you to see the schedule, circulation, and unlocking amount of various tokens.

So let’s take a look at which tokens will be unlocked this week!

Ethena（$ENA）

Total Market Value: 30.88 billion US dollars

Unlock time: December 25th 15:00

Token unlock amount: 12.86 million, worth approximately $13.37 million, accounting for 0.44% of the circulating supply

Cardano（$ADA）

Total Market Cap: 315.37 billion US dollars

Unlock time: December 26th, 20:00

Token unlocked: 18.53 million, worth approximately $16.31 million, accounting for 0.05% of the circulating supply

Immutable（$IMX）

Total Market Cap: 22.32 billion US dollars

Unlock time: December 27th, 08:00

Token unlocked: 24.52 million, worth about $32.12 million, accounting for 1.45% of the circulating supply

【Disclaimer】There are risks in the market, and investment needs to be cautious. Analyst opinions are for reference only. Users should refer to more diverse indicators to determine whether to invest, and consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this, at one’s own risk.

The total throw pressure exceeds 60 million euros! This week, ‘these 3 types of coins’ will be unlocked in large quantities, so be careful of the callback risk. This article was first published in ‘Cryptocurrency City’