Inventory of 15 mainstream projects recently unlocked by tokens

In the near future, the tokens of many well-known projects, including Solana, Yuga Labs, Optimism, etc., will usher in a large amount of unlocking. With the market flagging, how will an unlock of this magnitude hit the market?

Odaily organizes the 15 mainstream coins that will be unlocked in a large amount in the next few months in the following table in terms of unlocking quantity, unlocking time, unlocking amount, and ratio of circulation, compares and classifies them, and analyzes representative projects against tokens holder influence.

secondary title

SOL "unlocks" a large amount, but 2/3 of it cannot be circulated

Among the many unlocked tokens, SOL is perhaps the most special one. From the perspective of unlocking rules alone, according to Solana Comapss data, SOL will unlock 21.3 million pieces this year, which is not a small number. If SOL, which accounts for 4% of the total supply, flows into the market, it will definitely impact the price. At current prices, these SOLs equate to about $270 million.

Despite the large number of unlocks,But these unlocked tokens may not flow into the market in a short time.secondary title

Cliff Unlock Once Unleash Huge

SAND is a typical example of cliff unlocking in this unlocking wave. SAND will unlock 350 million pieces at one time on February 14th,This amount would amount to 11.6% of the current circulating supply.

Although the number of unlocks is huge at one time, the SAND circulation will not change for as long as half a year after that, and the next unlock will not be ushered in until August.

secondary title

High-frequency sub-linear unlocking is worthy of attention

Although the number of "cliff unlocking" released at one time is quite huge, what should really be valued by investors is the inconspicuous linear release of each release. After a long period of accumulation, the number is still considerable. Its unlocking curve seems to have become a rapidly rising "ramp".

Taking GLMR as an example, in the latest unlocking, GLMR unlocked about 46 million pieces, which is equivalent to 4.6% of the current circulation, which is similar to SOL. But unlike SOL,GLMR is not only unlocked once, but will continue to be unlocked every month.After the end of 2023, GLMR will unlock 250 million pieces,The circulation has increased by more than one-third compared to today.

secondary title

Various unlocking curves

In addition to common unlocking types, some special situations deserve investors' special attention.

Taking DYDX as an example, the latest unlock only unlocked 0.6% of the tokens in circulation. But after the arrival of February, about 145 million investor and team tokens will be unlocked at one time. The newly unlocked amount accounts for about 60% of the current circulation.

The OP unlocking curve belongs to this category, and June will usher in a one-time large release, unlocking 15.5 million pieces.

AXS also deserves special attention. At the end of January, the project will usher in a small-scale unlock of 4.88 million pieces, and from late March to April, AXS will unlock about 23 million pieces in two installments.

secondary title

How are investors responding to unlocking?

Perhaps the most worrying thing for investors is whether there is a selling pressure on the price of the currency when the large amount is unlocked.

Take the past December, for example. At the end of December, over 200 million 1INCHs were unlocked. As early as December 7th, the 1inch Foundation had distributed the unlocked tokens to multiple contract addresses for investors and teams to claim by themselves. Although affected by the volatility of the broader market, it is not yet known how much impact the unlocking sell-off will have, but since the allocation, 1INCH has continued to fall. On December 7th, it fell by 6.7%, and the currency price has fallen from around 0.47 USDT to the current 0.39 USDT.

Just today, a SAND genesis allocation address transferred tokens after two years. The address transferred 21.6 million SAND (more than 10 million US dollars) to Binance, and there are currently 18.2 million in the address. Previously, this address transferred 4 transactions of 13.4 million SAND to Binance after SAND went online in August 2020. According to the unlocking schedule of SAND tokens, the distribution that can be circulated at that time is only reserved by the foundation and the company, that is, the address may be the address controlled by the project party/foundation.

Some community users speculate that SAND is already preparing for the unlocked control panel.

On the other hand, LooksRare chose to pledge to reduce the selling pressure of the circulation plate. On January 2nd, 37.5 million LOOKS were unlocked, accounting for 3.75% of the total supply. According to 0xScope monitoring, 25 million LOOKS belonging to the LooksRare team and 12.5 million LOOKS belonging to the treasury have been pledged by team members after they were unlocked and distributed on January 2. How its pledge will affect the market outlook remains to be seen further.

In a bear market, the unlocking of large tokens is not good news for holders. Specifically, the choice of selling, long-term holding, pledge or other financial operations depends on the belief of holders of different roles in the project and the cost of holding positions (there may also be short sellers who take the opportunity to disturb the market). How to develop product services and expand the market in a bear market will be a practical test for the project side.