President and CEOFranklin Templeton
Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon…
President and CEOFranklin Templeton
Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon…
Axie Infinity’s AXS cryptocurrency is nursing losses ahead of Sunday’s planned unlocking of millions of dollars worth of the blockchain-based, play-to-earn project’s tokens.
Data from TokenUnlocks show on April 23, Axie will free up 18.89 million tokens, worth $155.27 million at the current rate, amounting to 7% of the cryptocurrency’s total supply of 270 million.
Axie kicked off a staggered 65-month token unlock in 2020, and so far, 176.55 million tokens have been made available. The remaining 77.76 million will be unlocked by the end of 2025.
Unlocks are widely considered bearish catalysts. That’s because holders benefiting from the unlock have the new ability to sell their coins, potentially adding to the supply in the market. It’s common for early stage projects to lock tokens to prevent big holders, typically early investors or project team members, from selling their coins all at once and causing a price slide.
Still, unlocks don’t always lead to lower prices and in the past AXS has rallied in the lead-up to the unlocking event. Besides, the broader crypto market has faced selling pressure this week, with top cryptocurrencies bitcoin (BTC) and ether (ETH) losing 8% and 10%, respectively. Most play-to-earn and gaming tokens are down between 5% and 10%.
In other words, AXS’ decline, at least, partly seems to be driven by broader risk aversion.
Amid AXS’ price drop, the dollar value locked in futures tied to the token has declined by nearly 20% to $44 million this week, according to data tracked by Coinglass.
A decline in both price and open interest suggests the fall has been caused mainly due to closures of bullish positions rather than outright shorts or bearish bets.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Post Disclaimer
The information provided in our posts or blogs are for educational and informative purposes only. We do not guarantee the accuracy, completeness or suitability of the information. We do not provide financial or investment advice. Readers should always seek professional advice before making any financial or investment decisions based on the information provided in our content. We will not be held responsible for any losses, damages or consequences that may arise from relying on the information provided in our content.
