Token Unlocking Events to Watch Out For
Token unlocking is the release of previously frozen tokens based on the fundraising situation. The project carefully schedules these releases to avoid market pressure and prevent the token price from falling. However, factors such as lack of liquidity or profit-taking by early investors can have a significant impact on the dynamics of the asset. While there are no major unlocks next week, the following three events are still worth keeping an eye on.
Immutable (IMX)
- Unlock date: August 9
- Number of unlocked tokens: 32.47 million IMX
- Current circulation: 1.54 billion IMX
Immutable is a layer 2 solution for scaling NFTs on the Ethereum blockchain. In September 2021, the project raised $12.5 million in just one hour through an IMX token sale on the Coinlist platform. In March 2022, it closed a $60 million investment round and received an additional $200 million from investors including ParaFi Capital, Declaration Partners, and Tencent Holdings. On August 9, the circulation of IMX is expected to increase to 32.47 million. Newly unlocked tokens will be used for project development and the broader Immutables ecosystem. The cryptocurrency community blames IMX’s poor performance on frequent unlocks.
XAI
- Unlock date: August 9
- Number of unlocked tokens: 35.88 million XAI
- Current circulation: 519.82 million XAI
XAI is the world’s first Layer 3 solution designed specifically for AAA games. The project will unlock 35.88 million XAI tokens on August 9 to be distributed to the team, investors, reserves, and ecosystem.
ENA
- Unlock date: August 11
- Number of unlocked tokens: 14.89 million ENA
- Current circulation: 180 million ENA
ENA is a synthetic currency protocol based on Ethereum. It provides native cryptocurrency solutions that are independent of traditional banks and offers USD-denominated savings instruments called “cyberbonds” to users around the world. On August 11, the project plans to unlock approximately 15 million ENA for ecosystem development.
As cliffs unlock next week include dYdX (DYDX), Hashflow (HFT), and Moonbeam (GLMR), with a combined valuation of over $60 million, many view token unlocking as bearish. However, a carefully planned timeline can enhance a project’s long-term viability. Aligning unlocks with milestones and development progress can help motivate your team, drive community engagement, and grow the ecosystem.
