SUI, IMX, and These Tokens Could Crash as Massive Unlocks Happen in October, while Ethereum Holds Steady

2023-10-5 19:30

The underlying tokenomics of a project can either pave the way for its success or become a stumbling block. This October, a slew of projects are slated to unlock substantial token amounts, prompting critical reflections on their tokenomic structures and potential repercussions on their market stability.

SUI: A Potential Pitfall of Over-Allocating to Early Backers

SUI released 34 million tokens on October 3rd, which is 4% of all the tokens they will ever have. Only 8% of all SUI tokens are out there right now, which means a lot more are coming. This could cause problems because a big chunk is promised to early investors and companies who might sell them quickly to get their money back, potentially dropping the token’s price.

IMX (Immutable X): A Facade of Stability Amidst Underlying Concerns

Immutable X is letting go of 16 million tokens on October 7th, which is 1.5% of all their tokens. They seem a bit more stable because they’ve already released 60% of all their tokens, but there are still concerns about what releasing more tokens will do to their value.

APT (Aptos): A Layer 1 Project Teetering on the Edge

Aptos is releasing 4.5 million APT tokens on October 12th, which is 1.9% of all the tokens they’ll ever have. In a space where there’s a lot of competition, even small mistakes in how they manage their tokens can cause big problems.

AXS (Axie Infinity): Inflationary Pressures Threatening to Undermine Success

Axie Infinity is planning to release 15 million AXS tokens on October 20th, which is a whopping 11% of all their tokens. Even though it’s a popular coin, this big release might test how loyal their investors are, especially with the coin being quite inflationary.

OP (Optimism): A Significant Unlock with Uncertain Implications

Optimism is releasing 24 million tokens on October 30th, which is 3% of all the tokens they will have. People are watching closely to see how this will affect its place in the market, especially since it’s been getting some attention lately.

Ethereum: A Stark Contrast in Inflation Management

In contrast, Ethereum, even though it can have an unlimited supply of tokens, has a system (like EIP-1559) that burns some tokens with each transaction, helping to manage inflation. This, along with being one of the first of its kind, helps Ethereum keep inflation in check better than its competitors.

Final Thoughts

While how these projects manage their tokens can definitely affect their value, it’s also true that having a lot of users and good technology can help fight against the problems token releases might cause. The big question is: will these projects manage to keep things steady, or will they face problems?

If you own any of these tokens, how do you feel about their plans? Do you think the popularity and uses of these tokens will help them stay strong against the issues that releasing more tokens might bring? Let’s talk more about it!

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The post SUI, IMX, and These Tokens Could Crash as Massive Unlocks Happen in October, while Ethereum Holds Steady appeared first on CaptainAltcoin.

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