News
$860 million in tokens to be released next month
Sun 30 Jun 2024 ▪ 4 min read ▪ by Evans S.
The cryptocurrency market is preparing for a turbulent July with the unlocking of tokens worth a total of $860 million. Around 40 crypto projects will see a portion of their tokens released onto the market, an event that could have significant repercussions on prices and market dynamics.
The main projects
Among the many projects involved, Xai crypto stands out with a massive release scheduled for July 9th. Approximately 198 million XAI tokens will be released, representing 71.5% of its circulating supply, with an estimated value of $97 million. These tokens will go to the project team, reserve, investors and ecosystem.
The cryptocurrency Aptos will follow closely with the unlocking of 11.3 million APT tokens on July 12, worth nearly $79 million. These tokens will be distributed to the Aptos Foundation, its community, top contributors, and investors.
Arbitrum plans to release 92.6 million ARB tokens on July 16, worth $76 million, for the team, investors, and project advisors. Finally, AltLayer will release 684 million ALT tokens on July 25, representing 45% of its circulating supply and valued at around $133 million.
Other notable projects include Io.net, Starknet, and Sui. Io.net will unlock 7.5 million IO tokens, representing 8% of its circulating supply and valued at $26 million, on July 1. Starknet will release 64 million STRK cryptocurrencies on July 15, representing 5% of its supply, worth $47 million.
Meanwhile, Sui will unlock 64 million SUI cryptocurrencies on July 1, accounting for 2.5% of its circulating supply and valued at $56 million.
Implications for the cryptocurrency market
Token unlocking refers to the release of tokens that were previously prohibited from trading.
This release can lead to increased selling pressure as a large amount of tokens enter the market, potentially driving down prices. Investors often fear these releases, anticipating a price drop.
However, not all token unlocks are necessarily bad. Smaller unlocks can have little impact on prices.
Furthermore, according to an annual report of Unlocks with tokens, tokens increase by an average of 34% after their unlocking for private investors. This shows that breakouts can also offer attractive buying opportunities if market conditions are favorable.
The exact impact of token unlocks often remains unpredictable. While some investors may be preparing for a drop in prices, others see these moments as opportunities to enter the market at lower prices. The inherent volatility of cryptocurrencies means that breakouts can create both risks and opportunities.
The advantages of Bitcoin in this context
Unlike many altcoins, Bitcoin remains a safe haven in the cryptocurrency universe. Its significant market capitalization and market leadership position make it a more stable option than more volatile altcoins.
Investors often see Bitcoin as a hedge against the extreme fluctuations seen in newer, less established projects.
Bitcoin continues to benefit from growing adoption by financial institutions and well-known companies.
This institutional recognition strengthens its position and resilience in the face of market turbulence. Additionally, regulations and financial infrastructure are developing around bitcoin, providing additional security for investors.
The Bitcoin blockchain is the oldest and most tested of all. Its security, transparency and decentralization are widely recognized, which gives it a certain advantage over other projects still in development or less mature. In times of volatilityThese features make Bitcoin a more attractive option for investors seeking stability.
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by Evans S.
Fascinated by bitcoin since 2017, Evariste has never stopped reading up on the topic. If his main interest is in trading, he will strive to capture all the advanced centers of cryptocurrencies. As an editor, he aspires to consistently provide high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.