Multiple Token Unlocks Scheduled For This Week, Crypto Market Retreats

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Seven crypto and decentralized finance (DeFi) platforms will perform token unlocks this week. Token prices generally do not react well to supply dilution.

On May 1, the 1 inch exchange will be the first major protocol to unlock tokens this week. However, with only 21,429 tokens released, there is unlikely to be a major impact on token prices.

Token unlocked this week

Unlocking the 1INCH token is worth less than $10,000 at current prices of around $0.463. According to Token Unlocks, 37% of the total supply of approximately 1.4 billion tokens remains locked.

Additionally, its tokenomics are massively weighted towards the team and investors. There are 1.29 billion tokens attributed to them in a release schedule that extends through December 2024.

This Week Crypto and DeFi Tokens Unlock Token Unlocks

Also on May 1, Polkadot-based web3 funding platform Acala will release assets. Around 27.4 million ACA tokens worth around $2.3 million will be unlocked. These represent 2.74% of the total supply, so there could be some downward pressure on token prices.

Acala’s tokenomics are a little more evenly spread across events, with an allocation of 34% to crowdlending participants, 29% to strategic partners, and 12% to reserve. The vesting and unlocking timeline extends through March 2028. ACA is trading down 97% from its high at $0.087.

On May 3, Nym will release almost 7.4% of its total supply. Around $16.3 million worth of NYM tokens will be released to expect downward price pressure this week.

The Trader Joe DEX releases tokens every other day, and the next is May 3 with 108,000 JOE tokens.

May 5 will see the unlocking of tokens for Liquity (LQTY) and Galxe (GAL). Meanwhile, on May 7, Tornado Cash will unlock 175,000 TORN tokens worth approximately $1.3 million.

The theory is that the process aligns incentives for all investors and stakeholders in the DeFi project. However, the reality is that this often causes short-term volatility and selling pressure.

Crypto Market Outlook

Crypto markets turned red during the Monday morning Asian trading session. Total capitalization fell 1.7% on the day, falling to $1.23 trillion.

BTC is down 2% at $28,595, while Ethereum (ETH) was down 2.7% trailing at $1,848. The only crypto asset in the top 20 to buck this trend is Binance’s BNB, which saw a 4.4% gain to $335 at the time of writing.

The correction appears to be picking up again, so projects with token deliveries this week could suffer heavier losses.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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