Unlocking tokens significantly increases the circulating supply, directly impacting the price. Concerns about excess supply turning into sales are a major factor. Domestic investors sell to buy at lower levels fearing the massive supply entering exchanges, weakening buyer liquidity and causing the price to drop further. However, there is also a reverse strategy in token unlocks.
Altcoin Lock Release Update
DYDX and many altcoins triggered volatility in favor of bulls by deciding to delay major unlocks. Now, the XAI Coin team recently shared an update announcing a revision related to the major unlock. The details of the announcement are as follows:
“Many of you have probably read articles or other publications on the web about the upcoming XAI unlock. We have seen high figures up to 79. These reports are incorrect.
Before the upcoming unlock, we announce that Xai participants have agreed to relock their July unlock tokens for 6 months. This reduces the supply allocated for the team in July from ~85 million to ~17.7 million.
The updated details of the upcoming July unlock are as follows:
Investor: ~72.3M
Team: ~17.7M
Advisor: ~4.2M
DAC: ~5.2M
Xai Foundation: ~8.5M
All this means that approximately ~107.9 million tokens will be unlocked in July. The current circulating supply of XAI is ~300M tokens. 107.9 million tokens represent an increase of ~36%, making up about 26% of the new circulating supply. Please note that the current total supply is 1,473,270,834. Also, remember that esXAI is not counted in the circulating supply as it is non-transferable. All tokens unlocked from each allocation are unlocked daily, not monthly. This applies not only to July but to all months. This means there is no single day when a large amount of tokens will be unlocked at once. Thank you for your support.”
