Over $27M in Token Unlocks This Week Could Sink Prices Further
This week will see a large swathe of token unlocks from various crypto and DeFi projects and networks. Usually, these unlock events put downward pressure on token prices.
More than $27.5 million worth of tokens are set to be unlocked this week, according to Token.unlocks.app. Altcoins are already in retreat from last week’s Ripple-induced rally and this could send some of them further down.
Token Unlocks Galore
On July 18, the Token.Unlocks.app platform reported that millions of dollars worth of crypto tokens were about to be released in cliff unlocks.
The largest of which is the Axie Infinity AXS unlock on July 22. This will see 3.43 million AXS tokens, or 3% of the circulating supply, flood the market. Furthermore, the massive token tranche is valued at a whopping $22 million.
However, this huge release isn’t as large as the one in April when 18.9 million AXS tokens were unlocked. In the week surrounding the event, AXS dumped 17%, so prices are expected to dip a little this time.
AXS had dropped 1.2% on the day to $6.34 at the time of writing and was down a whopping 96% from its all-time high.
Digital identity platform SPACE ID is set to release more than 15 million ID tokens on July 22. These are valued at around $4 million and represent 5.3% of the circulating supply. ID has dropped 10% over the past fortnight, and further losses are expected.
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On July 18, the X2Y2 NFT marketplace releases 37.5 million coins worth just under $1 million, representing almost 13% of its circulating supply. Its token of the same name is already down 6% over the past 12 hours or so.
Arkham ARKM Sale Commences
The big token sale of the week is Arkham’s ARKM on the Binance Launchpad which opened for subscriptions on July 17.
Binance capped the transaction price for the first five minutes at 10 times the public sale price. This means that ARKM prices cannot exceed $0.50 initially.
Arkham came under fire recently for data harvesting and was labeled a “snitch-to-earn” platform by some in the crypto community.