unlocking of around $300 million in tokens pushed back to December
This is quite a thorn out of the foot of dYdX users. The platform which was preparing this week to release 150 million DYDX tokens for investors, advisors and employees has finally decided to extend the deadline to December 2023. This represented almost 300 million dollars at the current price, and an increase of 67% of supply.
dYdX delays token release
This deadline had the effect of a sword of Damocles hanging over the heads of DYDX token holders. The dYdX platform planned to add 150 million new tokens to circulation on February 3, 2023, intended for investors who participated in the financings, consultants and employees.
This quantity of new tokens represented a mass of approximately 288 million and a multiplication by 1.67 of the total supply. A movement which would therefore have had the effect of massively dilute the value of tokens already in circulation and undeniably drag the price of the DYDX down.
Nevertheless, the dYdX platform has decided to postpone this deadline to December 1, 2023. A news that had a relief effect among token holders and that allowed during the DYDX to appreciate by more than 20% in the space of 24 hours.
📢Token Unlock Update📢
dYdX Trading Inc., dYdX Foundation and certain parties to the Warrants to Purchase Tokens signed an amendment to, among other things, postpone the initial release date applicable to investors $DYDX tokens to Dec 1, 2023
— dYdX Foundation 🦔 (@dydxfoundation) January 25, 2023
The token started Wednesday at a price of $1.56 before starting a real bullish rally even driving it beyond 2 dollars. As of this writing, the DYDX is trading around $2.1. As a reminder, dYdX is a decentralized trading platform and one of the few to have taken advantage of the fall of FTX to repatriate users.
Note, however, that this rise started long before the official announcement of dYdX. Indeed, it is undeniable that the initial investors to receive their tokens on February 3 were informed in advance of this decision.
👉 Discover our complete tutorial and our opinion on dYdX
Trade on the leading DEX
⛓️ A platform at the heart of DeFi
What is dYdX’s schedule now?
Although this announcement is positive in the short term, it only postpone the deadline for the release of these new tokens to December 1, 2023. Let’s take stock together of what to expect from this event.
In total, the foundation created 1 billion DYDXs. At the time of writing these lines, only 232 million tokens are in circulation. This quantity increases almost linearly every 28-day period in order to reward the traders of the platform in particular.
As of December 1, 2023, the release of the 150 million new tokens will be as follows: 45.8 million for employees, 21 million for the foundation for future recruitments and 83.2 million for investors who participated in the financing rounds.
Allocation of DYDX and prediction of token release over time
What should also be remembered is that the 83 million DYDXs intended for investors represent 30% of what they will receive in total. After the first event of December, 40% of total tokens will be unlocked monthly over the following six months, then 20% over the following year and finally 10% the year after.
Note also that the DYDX is ranked 123rd among the most valued cryptocurrencies, with $305 million capitalization. Eventually, with 1 billion tokens in circulation – and assuming a price always equal to 2.1 dollars – the token would end up in 32nd place in this ranking.
👉 Check out Cryptoast’s first collection of NFTs in partnership with dYdX:
Cryptoast launches its 1st collection of NFTs
NFTs associated with a collector paper journal 🔥
Source : Token Unlocks
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our pages Financial situation, Media Transparency and Legal Notice.