Attention crypto investors: Brace yourselves for a potential sell-off spree as more than $1 billion worth of tokens are scheduled to unlock this week. The primary tokens affected by this unlock event are Pyth Network (PYTH) and Avalanche (AVAX). It is crucial to note that last week, we cautioned against trading Aevo (AEVO) due to its token inflation resulting from a $1 billion unlock.
Over the course of seven days, starting on May 20, six cryptocurrencies will collectively unlock $1.27 billion worth of tokens. Pyth Network leads the pack with a massive $905.72 million unlock, causing a 141.7% increase in its supply. The remaining unlocks come from Avalanche ($348.18 million), SpaceID (ID) ($4.5 million), Acala (ACA) ($4 million), Euler (EUL) ($4 million), and 1inch (1INCH) ($3.6 million).
Pyth Network’s unlock commences first, with 2.13 billion tokens becoming available on May 20. Of this amount, the majority is reserved for Ecosystem Growth, followed by allocations for Publisher Reward and Protocol Development. Another 250 million PYTH is earmarked for “Private Sales” investors. Currently trading at $0.42, Pyth Network possesses a market cap of $630 million, with 1.5 billion PYTH circulating.
Avalanche’s unlock will occur on May 22, releasing 9.55 million AVAX tokens, valued at nearly $350 million. The distribution includes 4.50 million AVAX for the Team, 2.25 million AVAX for Strategic Partners, 1.67 million AVAX for the Foundation, and 1.13 million AVAX for the community airdrop. Notably, strategic partners and the foundation alone hold the potential to sell off over $142 million worth of AVAX.
While the token unlocks will undoubtedly introduce significant supply inflation, it should be noted that crypto markets can be unpredictable. Positive price performance may still be observed despite these unlocks. However, please exercise caution and recognize that investing in cryptocurrencies carries inherent risks.
Disclaimer: The information provided should not be interpreted as investment advice. Investing in cryptocurrencies involves a degree of speculation and risks the potential loss of capital.