The Sui Network’s Massive Token Unlocking Event: What to Expect
The Sui Network is about to unlock a significant amount of SUI tokens, worth approximately $18.7 million, on September 3rd. This move could have implications for the altcoin’s market dynamics. Here are the key points to note:
1. Transparent Unlocking Event: The details of the unlocking event have been shared with the public, and it will encompass 35.6 million SUI tokens, representing 5% of the current circulating supply.
2. Rewarding Early Supporters: A predominant portion of the unlocked tokens could be earmarked for the network’s early supporters, including those who contributed to the ACES program. This program was created to acknowledge and reward SUI discord members who played a crucial role before the altcoin’s mainnet launch.
3. Potential Sell-Off: The temptation to sell might arise for some early supporters, especially if a portion of the unlocked tokens is rewarded to active contributors. This could lead to a short-term price depression due to increased market supply.
4. Rapid Expansion: The Sui Network has experienced rapid growth, with the user base jumping from 3 million to 6 million active accounts in a short period. This steady growth rate could help cushion any potential bearish impacts.
5. Market Performance: SUI has seen a notable decline in the past 7 days, with nearly a 10% drop in market cap. The asset continues to experience a decline, with a 1.3% decrease in the past 24 hours.
In conclusion, the unlocking of SUI tokens on September 3rd could have a significant impact on the altcoin’s market dynamics. The allocation of tokens to early supporters and the potential sell-off may affect its price in the short term. However, the network’s rapid expansion and growing user base could help mitigate any bearish impacts.
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