MAVIA, HFT, EUL, GAL holders brace for volatility ahead of $55million worth of cliff token unlocks next week
|- Heroes of Mavia, Hashflow, Euler and Galxe networks have cliff token unlocks lined up next week.
- MAVIA, HFT, EUL and GAL tokens worth millions will be unlocked in a cliff event.
- Token holders should brace for volatility as unlocks are typically bearish catalysts.
Data according to TokenUnlocks shows that several projects are lining up to increase their circulating supplies next week, between May 5 and 9.
Cliff token unlocks to watch out for next week
The Galxe network will also be unlocking 5.18 million GAL tokens on Sunday, May 5, worth $18.27 million and comprising 5.76% of the circulating supply.
Heroes of Mavia to unlock 7.66 million MAVIA tokens worth $27.19 million on Monday, May 6. This will comprise 25.13% of the circulating supply and will be allocated to presale, gameplay rewards, to the community and the ecosystem at large.
On Tuesday, May 7, the Hashflow ecosystem will unlock 13.62 million HFT tokens worth $4.07 million and comprising 3.46% of the circulating supply.
There will also be another cliff unlock on Thursday, May 9, on the Euler network, where 67.94K EUL tokens will be unlocked. The tokens, worth $365K will comprise only 0.36% of the circulating supply.
After EUL, the Moonbeam ecosystem will be unlocking 0.35% of its circulating supply on Saturday, May 11. The unlock is omposed of 3.04 million GLMR tokens worth $902.54K.
More closely, the 1inch Network will unlock 15K 1INCH tokens on Saturday, May 4, worth $5,500.
Why token unlocks happen and their implications on project price
Token unlock events take place to establish a controlled and stable token distribution process. At the same time, it helps align incentives, while at the same time ensuring the project’s long-term success.
Some cryptocurrency projects also unlock their tokens at regular intervals in a gradual attempt to:
- Distribute tokens
- Incentivize participation
- Build community confidence
- Fund project development
- Enforce vesting periods to prevent immediate selling
Token unlocks are typically bearish catalysts and can, therefore, impact token prices. Particularly, when a project holds a voluminous tokens event, and these allocations are sold immediately, it could lead to a decrease in price due to increased supply.
In the same way, when tokens are unlocked gradually and used for project development or that the recipients turn out to be long-term investors, it can positively influence price stability and growth for the token.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.