Did you know that some cryptocurrency projects have vesting schedules where tokens are unlocked daily, often flying under the radar?
This quiet but constant release of tokens can lead to significant inflation in the market, frequently going unnoticed by many investors.
Let’s examine a few tokens that use a daily unlock mechanism:
– Worldcoin ($WLD): This token is unlocking 5.32 million tokens every day, injecting an additional $8.5 million into the market at the current price of $1.69. Over a month, this adds up to 255 million tokens, or $268 million worth of Worldcoin, entering circulation.
– Sei ($SEI): Currently, Sei emits 2.11 million tokens daily, valued at $630,000. However, starting on August 15th, when investor and team vesting begins, the daily emissions will jump to 5.03 million tokens, worth $1.53 million. Over the course of a month, this will amount to 146 million tokens, or 4.6% of the circulating supply, adding $43 million to the market.
– Arkham ($ARKM): This token releases 545,000 tokens daily, contributing $570,000 to the market. Since investor, team, and advisor vesting began last month, Arkham’s monthly emissions total 16.36 million tokens, representing 6.75% of the circulating supply and valued at $17.2 million.
📅 Daily Unlocks: The Hidden Force Behind Token Inflation?
Did you know that some projects have vesting schedules where tokens unlock daily, often going unnoticed?
This can lead to significant inflation without many people realizing. pic.twitter.com/CM97XtaSB5
— Token Unlocks (@Token_Unlocks) August 14, 2024
These examples highlight just a few tokens with daily unlocks. However, it’s important to note that these unlocks don’t necessarily result in immediate selling or drastic impacts on token prices. Various factors, including market sentiment, demand, and overall trading volume, can influence price dynamics.
In conclusion, while daily token unlocks may seem minor, their cumulative effect on inflation and token prices can be significant over time, subtly influencing the crypto market landscape. Investors should be aware of these dynamics when evaluating their portfolios.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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