Token Unlocks This Week: Immutable (IMX), Xai (XAI), and Ethena (ENA)

Token unlock involves releasing tokens that were previously blocked under fundraising terms. Projects carefully schedule these releases to avoid market pressure and prevent a drop in token prices.

Several projects are preparing for token unlocks in the upcoming week, an event that can influence an asset’s price dynamics.

While major unlocks are largely absent next week, here are three upcoming events to keep an eye on.

Immutable (IMX)

Layer-2 solution for scaling NFTs on the Ethereum blockchain.

Raised $12.5 million in IMX token sale on CoinList in September 2021.

Closed a $60 million investment round in March 2022, securing an additional $200 million from investors including ParaFi Capital, Declaration Partners and Tencent Holdings.

August 9: Circulating supply to increase by 32.47 million IMX tokens.

Newly unlocked tokens to be allocated for development of the project and the broader Immutable ecosystem.

Community discussing IMX’s lackluster performance, attributing it largely to the frequent unlocks.

“Look at the historical data. $IMX last bull market had a higher price but lower MC. Now it has a higher MC but the price is way less. This is due to supply unlocks,” noted one X user.

Xai (XAI)

World’s first Layer 3 solution designed specifically for AAA gaming.

Utilizes Arbitrum technology to prioritize simplicity and ease of use by removing the complexities of wallet management.

Makes blockchain integration a seamless part of the gaming ecosystem.

August 9: Project to unlock 35.88 million XAI tokens, allocating them to the team, investors, reserve and ecosystem.

Ethena (ENA)

Synthetic currency protocol built on Ethereum, offering a native cryptocurrency solution independent of traditional banking.

Provides global users with a dollar-denominated savings instrument called the ‘Internet Bond.’

The ENA token enables holders to vote on governance proposals.

August 11: Project to unlock nearly 15 million ENA tokens dedicated to ecosystem development.

Other next-week cliff unlocks include dYdX (DYDX), Hashflow (HFT) and Moonbeam (GLMR), with a total value exceeding $60 million.

While token unlocks are often viewed as bearish, a well-planned schedule can strengthen a project’s long-term viability. Aligned with milestones and development progress, unlocks will serve to motivate team members, boost community engagement and promote ecosystem growth.