1inch, a DEX Aggregator, set to unlock tokens worth $112M: DeFi Watch
Decentralized exchange (DEX) aggregator 1inch is preparing to unlock 222 million 1INCH tokens as part of its token release schedule. The tokens, valued at approximately $112 million, will be available on December 30th.
According to on-chain data tracking website Token Unlock, the unlocked tokens represent 14.8% of 1inch’s total supply. The DEX aggregator has a total supply of 1.5 billion 1INCH tokens, with over 611 million tokens already unlocked. This means that 888 million tokens, comprising 59% of the total supply, remain locked.
Token lockups, also known as vesting periods, prevent the trading of a cryptocurrency upon its entry into the market. This feature ensures that large token holders do not immediately sell off their tokens, potentially causing a price decrease. The lockup period is usually defined during the token’s launch.
In the case of 1inch, the vesting periods were established before the launch of its token, with varying durations ranging from one to four years. The tokens will become available for trading once the vesting period ends.
The announcement of the upcoming token unlock has raised concerns within the crypto community about its impact on the price of 1INCH. Some speculate that a significant price drop might occur with the release of 14.8% of the token’s supply. However, as of now, the token remains unaffected and is trading at $0.49.
It is worth noting that 1inch is not the only platform utilizing a token lockup mechanism. Axie Infinity, a popular play-to-earn game, also implements this feature for its utility token, AXS. On October 24th, the platform unlocked 8% of its total supply. Ahead of the unlock, Axie Infinity co-founder Aleksander Larsen reassured the community that the team would not dump the tokens. As of now, 1inch has not released any official comments regarding its upcoming unlock.
Tags: Crypto News, DeFi News
