- The dYdX Foundation has unlocked approximately 150 million DYDX tokens worth around $477 million from the allocated 50% supply for investors, founders, teams, and other managerial privileges.
- Following the unlocking, Lookonchain reported that three whales transferred nearly $21.5 million worth of DYDX tokens to Binance.
- The unlocking event for DYDX had a significant impact as it added more than 80% to its existing circulating supply, influencing the token’s price significantly.
dYdX Foundation sparked concerns on December 1 by releasing a massive amount of DYDX tokens: Here are the details!
dYdX Foundation Releases DYDX Tokens
The dYdX Foundation has unlocked approximately 150 million DYDX tokens worth around $477 million from the allocated 50% supply for investors, founders, teams, and other managerial privileges. The unlocking event was scheduled for December 1, releasing 150 million tokens. However, concerns were raised by investors due to the freely transferable nature of the newly released DYDX tokens on Binance.
Lookonchain reported that three whales transferred nearly $21.5 million worth of DYDX tokens to Binance immediately after the unlocking process. DYDX is the native token of the dYdX decentralized exchange (DEX), one of the popular platforms for trading Perpetuals. It has received support from major investors such as A16z, Paradigm, Polychain Capital, and many others.
In DeFi, unlocking events for tokens often lead to a downward trend in the asset’s market. The unlocking event for DYDX had a significant impact as it added more than 80% to its existing circulating supply, influencing the token’s price significantly. According to data, DYDX is currently trading at $3.16, experiencing a decrease of over 13% in the last 7 days.
What is token unlocking?
The term “token unlock” is commonly used in crypto projects and usually refers to the release of a cryptocurrency or token after being locked for a specific period. This can occur when certain conditions set by the project team or investors are met.
Crypto projects often enforce the locking or non-transferability of tokens for a specified period, typically during an ICO (Initial Coin Offering) or token sale. This is done to regulate the distribution of tokens to early investors or the project team and prevent market manipulation.
The token unlock process typically occurs automatically when specific conditions or milestones are met within a designated timeframe. This could be related to the project’s development, completion of goals, or reaching a specific date. The token unlock process can have a significant impact on the project’s future and token value within the crypto community. Therefore, investors and stakeholders often closely monitor the token unlock schedule and conditions.
