Crypto Market Alert: $350M Token Unlocks in July Raise Concerns

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• DISCLAIMER
• WRITER’S INTRO

CONTENT

Major projects including Aptos, Xai, and ImmutableX set to release significant token volumes, potentially impacting market dynamics and investor sentiment. Experts warn of increased volatility and selling pressure.

The cryptocurrency market is bracing for a significant influx of tokens this July, with major projects scheduled to unlock approximately $350 million worth of digital assets. This wave of unlocks could potentially impact market dynamics and investor sentiment across the crypto ecosystem, with experts warning of increased volatility and selling pressure. According to data from TokenUnlocks.app, the seven-day cliff unlocks amount to $186.32 million, with three leading protocols accounting for $173.02 million, or 93% of the total.

Key project unlock details are as follows:

1. Aptos ($APT): Set to unlock 11.31 million tokens on July 12, valued at $66.16 million, representing a 2.5% supply inflation. Core protocol contributors and the Foundation will receive tokens worth $30.96 million, while private investors will get $16.43 million.
2. Xai (XAI): Scheduled to unlock 198.4 million tokens on July 9, valued at approximately $65 million, causing a 71.6% supply inflation. Private investors will receive 103.95 million XAI tokens, while the development team will get 71.43 million tokens worth $23.64 million. Analysts warn that a significant sell-off could severely impact XAI’s market price.
3. ImmutableX (IMX): Will unlock 32.47 million tokens worth $41.24 million on July 12, aimed at ecosystem and project development.

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Other notable projects include Worldcoin (doubling its daily token release rate to 6.62 million tokens, worth about $13.3 million, starting July 24, 2024) and Arbitrum (unlocking 92.6 million tokens valued at approximately $64 million on July 16). The gaming sector is also affected, with Axie Infinity, Apecoin, and Pixels set to unlock tokens worth millions in mid-July.

These unlock events may lead to increased cryptocurrency price volatility and potentially worsen the risk-reward ratio for certain assets. Experts emphasize the importance of proper risk management and advise investors to carefully consider their exposure to cryptocurrencies undergoing significant token unlocks. The market remains influenced by multiple factors, and the coming weeks may prove crucial in shaping the short-term trajectory of these projects and the broader cryptocurrency landscape.

As the crypto market faces this unprecedented wave of token unlocks in July, investors need to stay vigilant, closely monitor market dynamics, and adjust their investment strategies according to the latest developments.

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