In altcoins, the owners of pre-allocated tokens can be returned over time. Token unlock This event, known as altcoins, takes place at different times.
Some altcoinUnlocking, which is every 6 months in some countries and every 3 months in some, takes place monthly in some altcoins. We are trying to announce these token expansions to you on a weekly basis.
The Tie opening of token locks altcoin published a report examining the effect on prices.
In its report, The Tie, which examined 100 tokens and 350 thousand unlocks, stated that in general token prices fell before the unlock, recovered a little during the unlocking, and then went below the level during the unlocking.
“Prices of tokens are pulling back a bit before the unlock and if the amount of tokens unlocked represents more than 100% of the daily average volume, the price quickly recovers with the unlocking. However, two weeks after the unlocking, it goes even lower than this level.
We found that two weeks after major unlocks, the price went below the price level at which the locks were opened. This shows that token holders prefer to wait a few days before selling.”
Regardless of The Tie report, it is possible to say that the price first moves up due to the concentration of short positions on the token in similar lock openings and then falls again after liquidating the short positions.
When we approach from this point of view, it can be painful to open a short position when the lock is opened just because it will be unlocked and there will be selling pressure.
*Not Investment Advice.
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