Crypto News

XAI Unlocks 198 Million Tokens, Significantly Impacting Market Dynamics

XAI recently unlocked 198 million $XAI tokens, worth approximately $70.7 million, accounting for 71.59% of the circulating supply.

This significant unlock is driven by the project’s decision to distribute additional tokens to its reserve, investors, and team.

The breakdown of the unlock is as follows:
– Reserve: 3.375 million $XAI (~$1.03 million)
– Investors: 103.95 million $XAI (~$31.84 million)
– Team: 71.42 million $XAI (~$21.88 million)

XAI’s current market capitalization stands at $81 million, with a 24-hour trading volume of $31.2 million. The amount unlocked is substantial, almost equivalent to the market cap and 2.3 times the daily trading volume. This large influx of tokens could significantly impact market dynamics.

$XAI Price Movement And Expectations Upon Token Unlock 

Notably, the focus is on investors who have already realized substantial profits from previous rounds. The project raised approximately $10.4 million through three fundraising rounds, with token prices at $0.01, $0.032, and $0.035 per $XAI, respectively. Currently, $XAI is priced at $0.295.

If all unlocked tokens are sold, early investors from the seed round could see returns of 29.5 times their initial investment, while private round investors could see returns of 9.2 times. This potential for high returns may prompt investors to liquidate their holdings, putting downward pressure on the token’s price.

In conclusion, XAI’s recent token unlock has introduced a significant amount of $XAI into the market, with implications for its price and trading dynamics. Investors who have seen substantial returns may take this opportunity to sell, potentially affecting the token’s value. Market participants should closely monitor these developments as they unfold.

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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