The altcoin market is showing some volatility as investors gear for more than $500 million in token unlocks this week.
The altcoin market is experiencing volatility as over $500 million worth of tokens are set to be unlocked this week, including $80 million in Worldcoin (WLD).
Investors are gearing up for more than $500 million in token unlocks this week, as per the data shared by TokenUnlocks. Among these unlocks are over $80 million in Worldcoin’s WLD, $51 million in Arbitrum’s ARB, and nearly $40 million each in Eigenlayer’s EIGEN and Axie Infinity’s AXS will be released over the next seven days.
The Worldcoin (WLD) token release would increase the cryptocurrency’s supply by 7%. Later, the token distribution would happen among Worldcoin investors, team members, and advisors. Initially, the WLD tokens distributed to early contributors were part of a three-year lock-up schedule. However, in July, the lock-up period extended to five years.
Moreover, the Layer 2 network Taiko will see a supply surge of 15% with more than $18 million unlock scheduled. Out of the total $500 million in unlocks, tokens valued at $200 million will be released in a “cliff”, which refers to a substantial release of tokens all at once. Below is the list of altcoins along with their token unlocking value.
Apart from these altcoins, giants like Solana’s SOL will also see $80 million worth of unlocks as part of its “linear” plan, which involves emitting and absorbing the tokens by the market.
Unreported token creation events can lead to massive sell-offs in the token’s market. For instance, in 2022 April, a large volume of 1INCH tokens were unlocked as part of the project’s tokenomics, which triggered a sell-off in the token’s price.
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