Three cryptocurrencies have released more than $150 million in tokens this week, which may have consequences for their prices. This article will provide information on the tokens involved and it is advisable to be prepared for this.
Unlocking tokens is a common strategy for crypto projects. More tokens are put into circulation, which can improve the decentralization of the network and attract new users. However, the disadvantage of token unlocks is that there is more supply, which can create great selling pressure. This in turn results in significant price fluctuations, which is why it is important to keep an eye on token unlocks.
The first token to unlock this week is Arbitrum (ARB). This will also be the highest unlock in terms of dollar value. ARB 92.65 million will be released from so-called acquisition contracts for the team and investors. This will increase ARB’s supply by 3.2 percent, which could lead to higher selling pressure.
The ARB team will receive 56.13 million tokens worth $51.72 million. In addition, investors will receive $36.52 million tokens with a value of $33.65 million. Arbitrum unlocks a similar number of tokens every month, which is annualized inflation of more than 35 percent.
The second and third token unlock comes from the crypto tokens Space ID (ID) and Pixels (PIXEL). Starting with PIXEL who will do the token unlock on June 19th. There will be 54.37 million PIXEL tokens on the market, increasing the supply by 7 percent. The value of these tokens amounts to $19.66 million.
On June 22, 78.49 million ID tokens will be released, worth $44.45 million. Don’t be alarmed, the supply will increase by 18.2 percent.
If you are in possession of these tokens, you must be careful. Crypto traders often anticipate news of token unlocks, which can lead to increased volatility. It is always advisable to thoroughly research the project and what impact token unlocks can have. The crypto market is uncertain and several factors can influence the underlying prices. Good risk management is therefore wise in a crypto market.
