Big G explains: SXT plummeted 16.38% today, back to square one overnight! Behind this lie three deadly minefields:
Institutions cashing out in advance set a trap.
On-chain data shows that Binance announced an initial price of $0.17. In the first 3 hours, a mysterious institution sold off 12 million SXT tokens (worth about $6.72 million). This precise dump directly crushed the price from $0.56, and the retail investors were cut before they even got on board. What's worse is that early players, who had a seed round cost of only $0.01, can now make a 17 times profit by selling just one token!
Unlocking bombs in a chain reaction.
A timed bomb was planted right after the launch: 375 million tokens will be unlocked in the first month, which equals 13 million tokens hitting the market daily. The current circulation is only 1.4 billion tokens, and this wave of unlocking will directly saturate the selling pressure. In comparison, similar projects like GRT only increased their circulation by 22% in the first year, while SXT is set to explode by 42.8%, clearly doubling the selling pressure.
Technical boasting is hard to realize.
The so-called industry-disrupting Proof of SQL technology has dismal actual commercial data—only 8,000 daily queries on the mainnet, which is less than even a fraction of the competitor The Graph. Although Microsoft has provided cloud service binding, the nodes are still concentrated in the hands of institutions, making decentralization merely a hollow phrase.
Market script prediction:
Short-term (1 week): $0.10 is the critical line; falling below may trigger a staking collapse (the current staking rate is only 28.6%).
Mid-term (1 month): A wave of unlocking is coming at the end of May, and the price may dip to $0.08.
Reversal signal: Keep an eye on the funding rate for Binance contracts; a negative interest rate for five consecutive days indicates that the bears are still increasing their positions. If Microsoft suddenly announces an enterprise-level collaboration, it might save the situation.
In summary: SXT is currently an ATM for institutions; retail investors should definitely avoid catching falling knives! If you really want to buy the dip, wait for the daily line to stabilize at $0.12 before taking action.
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