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The cryptocurrency market is poised for significant liquidity changes due to upcoming token unlocks. On August 29, 2024, several major tokens will release a substantial number of tokens into circulation. Specifically, $LIT will unlock 1.59 million tokens, while $PORTAL will unlock 24.6 million tokens, and $WLD will release 5.02 million tokens. Analysts note that such unlocks can lead to underperformance in token prices, particularly in the seven days surrounding the event. This phenomenon is observed when unlocks represent over 5% of the circulating supply, often resulting in counterintuitive market reactions. The market is closely monitoring these events as they could influence trading dynamics significantly.
Cliff unlocks can have a major impact on token performance. Our research shows that unlocks involving 5%+ of circulating supply often lead to noticeable underperformance versus the rest of the market, especially in the seven days before and after the event. Timing matters! https://t.co/4YCvXgusa4
The relative underperformance of token unlocks mainly occurs in a window seven days before and seven days after the event. Meanwhile, highly anticipated large unlocks can have counter-intuitive market reactions. So, are bullish unlocks in the room with us? Navigate the market… https://t.co/wCSayYVUue
I want to see milestone-based vesting. Ie, If team maintains valuation at $50m fdv for 2 weeks, x amount of tokens unlock So and so forth. Same for investors and KOLs. This way, everyone is incentivized to make the token successful. Thoughts?
