Injective (INJ) Token Unlock: What You Need to Know
Injective (INJ) has experienced an impressive surge in value, with gains of over 3,300% since its lowest point. However, as the team prepares to unlock tokens worth nearly $150 million on January 20, it is important to understand the potential impact on the price.
The token unlock stems from Injective’s genesis distribution, which includes locked tokens held in vesting contracts. A total of 3.67 million INJ will be available for the team and advisors to sell at their discretion.
Specifically, the team will have access to 3.33 million INJ valued at $125 million, while advisors will receive over $12 million worth of tokens. This information was obtained from TokenUnlocksApp on January 16.
Injective (INJ) Price Analysis Amid Token Unlock
At present, Injective is trading at $40.81, slightly below its all-time high of $45.28. This represents an unrealized profit of 3,300% since its lows in December 2022.
It remains uncertain how this upcoming token unlock will impact INJ’s price. Previous unlocks worth $22.05 million caused a decrease of over 12% in price from two days before the unlock to one week after it occurred.
In August 2023, for example, Injective traded at $7.88 on August 18 and closed at $6.92 on August 28 following the unlock.
To minimize potential losses during this token unlock, Injective must generate sufficient demand and prevent a significant negative impact on price as the bull market continues.
Hot Take: Will Injective Overcome the Token Unlock Challenge?
As Injective prepares to unlock tokens worth nearly $150 million, there is speculation about the potential consequences for its price. While the cryptocurrency has experienced substantial gains in recent times, previous token unlocks have resulted in significant price declines.
To ensure a positive outcome, Injective must attract enough demand to counterbalance any potential sell-offs and maintain its position in the market. The success of this endeavor will determine whether Injective can overcome the challenges posed by the upcoming token unlock and sustain its growth trajectory.
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