While token unlocks are met with anxiety by investors due to their impact on the price, a loaded token unlock will take place in Celestia (TIA).
Accordingly, Celestia is set to surge due to a major token unlock that will take place on October 30.
With this unlock, the number of TIA tokens in circulation will almost double.
According to the data, approximately 176 million previously locked TIAs will be unlocked, which equates to 80% of the current supply.
This unlock will be the largest single unlock event since TIA launched last October.
Impact of Unlocking on Price!
Altcoin projects usually lock a portion of their token supply and gradually unlock it to prevent early investors and insiders from selling large amounts immediately after token allocations.
Once the tokens are unlocked, they become tradable and therefore, such large unlocks are generally considered bearish and often result in price drops.
Commenting on the unlocking of TIA, Taran Sabharwal, founder of OTC trading platform STIX, said that after the unlocking, a total of 92.3 million TIA tokens are expected to come into circulation, including unstaking tokens, tokens in the 21-day unstaking queue, and approximately 24.1 million unregistered tokens, and the estimated maximum selling pressure will be $460 million.
Anagram partner David Shuttleworth said the unlocking could have an impact on the TIA price, adding: “There could be some obvious impacts from the token unlocking. The amount of tokens unlocked is many times the average daily trading volume of $50 million to $200 million last month. However, it could have positive impacts in the longer term.”
Popular cryptocurrency analyst Will Clemente said:
“Given the broad rally in the cryptocurrency market, the possibility that TIA will surprise investors with a rally has increased, even though TIA is set to experience a major unlock.
Bitcoin’s sharp rise has reduced the likelihood of the TIA price trending lower following the unlock.”
TIA continues to trade at $5.02 at the time of writing.
*This is not investment advice.
