Hashflow price likely to crumble under selling pressure after massive HFT token unlock
|- The HFT token unlock on November 7 has flooded the market with 160.38 million tokens.
- As $44.32 million worth of HFT tokens enter circulation, the asset braces for a pullback in price.
- Hashflow price lost 2% on the day while supply on exchanges continues mounting.
Hashflow DEX’s token HFT, unlocked 73% of its circulating supply early on Tuesday. The massive token unlock event flooded exchanges with Hashflow tokens, likely increasing selling pressure on the asset. HFT price could lose its value further, when entities that received the unlocked tokens begin to shed their holdings.
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HFT unlocks 160.38 million tokens, floods exchanges
Based on data from token.unlocks.app, 160.38 million Hashflow (HFT) tokens worth $44.32 million at the time, were unlocked on November 7. Of these, the core team received $13.35 million, $115,150 was set aside for community rewards, $13.59 million was spent on ecosystem development and $17.27 million was allocated to early investors of HFT.
HFT is stuck in a long-term downtrend. At the time of writing, HFT price is down 14.37% on the month and nearly 2% on the day. The asset is likely to witness further correction, with a rise in volatility in the short term as the wallet addresses that received the unlocked tokens engage in profit taking. This is likely to lead to HFT supply on exchanges mounting and increased selling pressure on the asset.
HFT vs TetherUS: Daily Chart
To examine the likely impact of the token unlock, the on-chain metric, Supply on Exchanges can be used.
HFT Supply on Exchanges climbed 88.5% in the past three months and 4% since the beginning of November, according to data from Santiment. The chart data below reveals that HFT is slowly but consistently moving to exchange wallets, contributing to the selling pressure on Hashflow’s token.
Further, HFT supply held by large wallet addresses (as a percentage of total supply) declined 1.7% in three months, and a whopping 10.65% since the beginning of November. This suggests large wallets are offloading the token in order to sell.
Supply on exchanges, supply held by top addresses and price
As seen in the chart above, when combined, the supply on exchanges and the supply held by top addresses holding HFT points towards a bearish outlook on the asset. Both these metrics point towards an impending correction in HFT price.
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