Markets
$860 million worth of tokens to be released next month
Sun June 30, 2024 ▪ 4 min read ▪ by Evans S.
The crypto market is set to have an eventful July with the unlocking of tokens worth a total of $860 million. Around forty crypto projects will see part of their tokens placed on the market, an event which could have significant repercussions on prices and market dynamics.
The flagship projects
Among the many projects involved, the Xai crypto stands out with a massive release scheduled for July 9. Approximately 198 million XAI tokens, representing 71.5% of its circulating supply, will be issued for an estimated value of $97 million. These tokens will go to the project’s team, reserve, investors, and ecosystem.
Crypto Aptos will follow closely with the release of 11.3 million APT tokens on July 12, worth nearly $79 million. These tokens will be distributed to the Aptos Foundation, its community, its main contributors and investors.
Arbitrum plans to release 92.6 million of its ARB cryptocurrencies on July 16, worth $76 million, to the team, investors and project advisors. Finally, AltLayer will unlock 684 million ALT tokens on July 25, representing 45% of its circulating supply and valued at approximately $133 million.
Other notable projects include Io.net, Starknet, and Sui. Io.net will release 7.5 million IO tokens, representing 8% of its circulating supply and valued at $26 million, on July 1. Starknet will launch 64 million STRK tokens on July 15, representing 5% of its supply, valued at $47 million.
Sui, meanwhile, will unlock 64 million SUI cryptos on July 1, representing 2.5% of its circulating supply and valued at $56 million.
Consequences for the cryptocurrency market
Token unlocking refers to the release of tokens that were previously prohibited from trading.
This release may lead to increased selling pressure as a large amount of tokens enter the market, which could push prices down. Investors often fear these releases, anticipating a drop in prices.
However, not all token unlocks are necessarily negative. Smaller releases may have minimal impact on prices.
Furthermore, according to an annual report from Tokens unlocked, tokens increase on average by 34% after their release to private investors. This shows that unlocks can also provide attractive buying opportunities if market conditions are favorable.
The exact impact of token unlocking often remains unpredictable. While some investors may prepare for falling prices, others see these times as opportunities to enter the market at lower prices. The inherent volatility of cryptocurrencies means that unblocking can create both risks and opportunities.
The advantages of Bitcoin in this context
Unlike many altcoins, Bitcoin remains a safe haven in the world of cryptocurrencies. Its large market capitalization and market leadership position make it a more stable option compared to more volatile altcoins.
Investors often view Bitcoin as a hedge against the extreme fluctuations seen in newer, less established projects.
Bitcoin continues to enjoy increasing adoption by financial institutions and renowned companies.
This institutional recognition strengthens its position and resilience in the face of market turbulence. Additionally, regulation and financial infrastructure around bitcoin are growing, providing additional security for investors.
The Bitcoin blockchain is the oldest and most tested of all. Its security, transparency and decentralization are widely recognized, giving it a clear advantage over other projects still in development or less mature. In time of volatilityThese characteristics make Bitcoin a more attractive option for investors seeking stability.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.