150M $DYDX Token to be Unlocked on December 1st, Raises Concerns Over Market Price Dump
The post 150M $DYDX Token to be Unlocked on December 1st, Raises Concerns Over Market Price Dump appeared first on Coinpedia Fintech News
DYDX, a prominent cryptocurrency, is gearing up for the unlocking of 150 million tokens, valued at a staggering $500 million, scheduled for December 1st. This substantial unlocking of tokens has raised concerns about the significant price drop in token. Similar to this, other tokens like OP, 1inch, APT, and APE are about to unlock in the coming months.
Unlocking 150M $DYDX Token
According to TokenUnlocks data, on December 1st, dYdX is scheduled to release around 150 million tokens, representing 81.63% of its circulating supply and 15% of the total supply, which will be unlocked.
Meanwhile, the breakdown of the distribution constitutes 30% of the allocated supply for 83.19 million to Investors, 45.72 million to Founders, Employees, 21 million allocated to Future Employees, 1.58 million for Trading Rewards, and 575.35k designated for Liquidity Provider Rewards.
This unlocking event represents nearly 80% of the current circulating supply of DYDX, with a total estimated value of $500 million, according to The Block’s price data.
Originally planned for January 2023, these tokens faced a delay due to bear market conditions. Looking ahead to 2024, a monthly unlocking pattern is anticipated, with nearly 34 million DYDX tokens scheduled to unlock each month for the first six months.
Consequently, the DYDX circulating supply, currently at 188 million tokens, is expected to nearly triple, reaching approximately 553 million tokens by June 1, 2024.
Will This Crash DYDX Price?
Despite the substantial amount being unlocked, a critical factor comes into play. The upcoming token unlocks are set to take place on the dYdX chain, which currently lacking support from centralized exchanges.
Additionally, the Ethereum-dYdX chain bridge is one-way, preventing the conversion of dYdX chain tokens back to ERC-20.
This unique situation introduces complexities to the market dynamics. While there’s anticipation of a price dump due to increased Open Interest (OI) in DYDX, the tokens can’t be immediately dumped as the unlocks are happening on the dYdX chain.
OP, 1inch, APT, APE Coins Unlocking Soon
Beyond dYdX, various prominent projects are also preparing for token unlocks in the upcoming weeks. Optimism is set to unlock 24.16 million OP tokens, valued at over $42 million, while 1inch anticipates unlocking around 98.74 million 1INCH tokens, equivalent to approximately $34.5 million in value.
Moreover, according to TokenUnlocks, the layer 1 blockchain platform Aptos is poised for a significant token to unlock on December 12th, releasing 24.84 million APT tokens, valued at $180 million.
Additionally, around December 26th, approximately 15.16 million APE tokens, with a market value of $25 million, are set to enter the cryptocurrency market.
Filed under: Bitcoin - @ November 27, 2023 12:25 pm