Tokens increase 34% on average when unlocked by private investors

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Token prices have risen by an average of 34,5% in the seven days following the opening to private investors. The “Annual Report 2023: Unlock Revolution”Token Unlocking on the Data Platform The following is a list of the most recent shows.It is not common sense that tokens lose value before private investors can access large amounts of cryptocurrency. Retail fears could be the reason for this.

In general, the findings show that token prices tend both to increase before and after unlocking, across all allocation categories. The price of tokens allocated for Public Investors, or retail, tends to decrease after unlocking. In contrast, the Community & Other category, despite having a high ratio of unlocked tokens to circulating supply, shows higher prices before the unlock date than on the date itself.

The report analyzes 600 token unlock events excluding initial token creation events (TGEs) and their impact on token price. Five types of different unlocks were objects of study: Community & Other, Founder/Team, Private Investors, Public Investors, and Reserved.

The study classified each event according to predefined criteria. It examined price movements 15, 7, 3 days and 15 days before and after unlocking date in relation to token number and proportion of total circulating supply.

Image: Token Unlocks

The analysis reveals that unlocking events vary widely. Some releases are as small at 0.5%, while others can be as large as 50 % of the circulating supplies. The impact on token prices will be adjusted according to the size of the unlock. This is calculated as the ratio between the unlocked amount and the circulating supply.

Contrary to popular belief data suggests that unlocking in the Founder/Team Category does not lead to a price decrease. Prices are higher before and even after the unlocking date than the unlocking date itself.

The trend in the Private Investors’ category is particularly notable. Prices typically drop 15 to 7 days before unlocking, possibly because non-private investors are concerned about possible sell-offs from private investors who often purchase tokens in greater quantities and at lower prices. After the unlock, prices in this category increase significantly, more than other categories.

For tokens in the Reserve category, which are usually transferred to a protocol’s decentralized autonomous organization (DAO) or a multisig wallet, community voting is required before any expenditure, leading to mixed price movements both before and after the unlock date.

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