These Seven Crypto Projects Open Tokens This Week. Will Prices Shake?
The 1inch exchange will be the first major protocol to release tokens this week on May 1st. However, with only 21,429 tokens issued, there is unlikely to be a significant impact on the token price.
At a current price of around $0.463, a 1INCH unlock token is worth less than $10,000. Token Unlocks estimates that 37% of the entire supply of around 1.4 billion tokens is still locked.
Also, the tokenomics is heavily skewed towards teams and investors. They have 1.29 billion tokens in delivery plan till December 2024.
Acala, a Polkadot-based web3 finance app, will also release assets on May 1. A total of 27.4 million ACA tokens worth around $2.3 million will be unlocked. Since they account for 2.74% of the total supply, the token price may be under pressure.
Tokenomics Acala is more event-focused, with 34% allocated to crowd loan participants, 29% allocated to primary partners, and 12% allocated to reserves. The vesting and unlocking schedule runs through March 2028. The ACA is down 97% from its high of $0.087.
On May 3, Nym will release approximately 7.4% of its entire supply. This week, around $16.3 million of NYM tokens will be distributed, putting downward pressure on the price.
Every few days, Trader Joe DEX issues tokens, and the next one is on May 3rd, with 108,000 JOE tokens. On May 5, tokens for Liquity (LQTY) and Galxe (GAL) will be available. Meanwhile, on May 7, Tornado Cash will grant access to 175,000 TORN tokens worth around $1.3 million.
The procedure, hypothesized, aligns incentives for all DeFi project investors and stakeholders. In practice, however, this often results in short-term volatility and selling pressure.
During the Asian Monday AM trading session, cryptocurrency markets turned red. Total capitalization fell 1.7% today, reaching $1.23 trillion. BTC fell 2% to $28,595, while Ethereum (ETH) fell 2.7% to $1,848. Binance’s BNB, which has gained 4.4% to $335 at the time of writing, is the only crypto asset in the top 20 bucking this trend.
As the correction appears to be continuing, projects with token supply releases this week may suffer even greater losses.