The FTN, ZRO, KAITO tokens and many other coins will have a large unlocking event next week with a value of tens of millions of USD.
The token unlocking plan diversely affects the circulating supply, value, and market volatility of related cryptocurrency projects, especially during periods with large volumes of tokens returned to wallets.
MAIN CONTENT
Fasttoken (FTN) unlocked approximately 20 million tokens worth 91.4 million USD on August 18.
LayerZero (ZRO) and ZKsync (ZK) unlocked more than 25 million tokens, accounting for nearly 8.5% of the supply on August 20.
KAITO and SOON have high token unlocking rates, over 10% of the supply, significantly affecting the market.
What will happen to the Fasttoken (FTN) token when 20 million tokens are unlocked?
The amount of FTN tokens unlocked on August 18 is equivalent to 2.08% of the circulating supply, valued at around 91.4 million USD based on the current market price.
This quantity is not small and could impact liquidity and the price of FTN in the short term. Unlocking often increases selling pressure from previous holders and can lead to price declines if there is no corresponding demand.
Many projects have recorded significant price fluctuations after similar unlock events due to a sudden increase in supply in the market.
How will LayerZero (ZRO) and ZKsync (ZK) unlock tokens?
Both LayerZero (ZRO) and ZKsync (ZK) will unlock approximately 25.7 million tokens on August 20, accounting for 8.53% of the total circulating supply, valued at around 56.6 million USD.
This is a significant unlocking rate that could affect price volatility and liquidity. The simultaneous unlocking of the two projects could create a psychological effect on investors and the related cryptocurrency market.
In particular, LayerZero, with its expanding ecosystem, will need to manage its token flow well to stabilize prices and maintain community trust.
"The timing of token unlocking is always a test of the project's sustainability and supply management strategy. Clear information coordination helps minimize excessive volatility."
Mr. Nguyen Nam, cryptocurrency analyst, 2024
How does the large unlocking of KAITO and SOON affect supply?
KAITO will unlock 23.35 million tokens, accounting for 10.87% of the circulating supply on August 20, while SOON will unlock up to 41.88 million tokens, equivalent to 13.04%, on August 23.
This unlocking rate is very high and could suddenly increase market supply, creating downward price pressure if not accompanied by sufficiently large buying demand. Investors need to closely monitor related movements and consider appropriate trading strategies.
Projects with an unlock rate above 10% must have a token regulation strategy to maintain stability and trust within the community.
What is the impact level of the Melania Meme (MELANIA) token unlocking event?
Melania Meme (MELANIA) unlocked 26.25 million tokens on August 18, accounting for 5.60% of the supply and valued at approximately 5.7 million USD.
This unlocking level, while smaller than other projects, is still noteworthy due to its impact on liquidity and token prices in the market. Volatility often depends on supplementary factors such as speculation and the holder community.
Project management needs to coordinate with marketing campaigns and provide transparent information to mitigate the risk of negative volatility.
Frequently Asked Questions
What impact does token unlocking have on the cryptocurrency market?
Unlocking increases the supply of tokens, which can lead to selling pressure, resulting in price volatility and affecting liquidity in the market.
How should investors respond to a large unlocking event?
Investors should monitor the unlocking schedule, assess market demand trends, and plan appropriate risk management.
What unlocking token rate is concerning?
When the unlocking rate exceeds 5-10% of the circulating supply, psychological pressure and prices may experience significant fluctuations if there is no compensating buying flow.
What is the project's move when unlocking tokens?
Projects usually announce in advance, coordinating information to reduce community panic and may apply price stabilization strategies.
What factors determine the USD value of unlocked tokens?
The value of unlocked tokens is calculated based on the current market price at the time of unlocking and the amount of tokens issued.
Source: https://tintucbitcoin.com/ftn-zro-kaito-mo-khoa-lon/
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