The modular blockchain network Celestia has initiated a significant token unlock for its local token TIA, valued at approximately 890 million dollars at current prices. Following this unlock, TIA’s value has decreased nearly 20% over the past week and has fallen by 77% from its all-time high.
Impact of the Unlock
Token unlock events are often perceived negatively in the crypto market, as increased supply typically leads to more assets hitting exchanges for sale. However, it is known that such unlocks do not always result in corrections or crashes. If the anticipated drop does not occur, short positions may be closed, causing the spot price to move in the opposite direction.
In Celestia’s case, approximately 175 million previously locked TIA tokens will be distributed to contributors, early investors, and seed round investors. This will double the circulating supply of TIA.
Expert Opinions and Investor Strategies
Chris Burniske from Placeholder indicates that he will continue to invest in Celestia despite the unlock. He views TIA prices below 5 dollars as an outstanding opportunity for a bull market.
“The Celestia ecosystem is operating at full speed, providing a dynamic environment for developers.” – Burniske
Currently, TIA is trading at 4.76 dollars. Some market analysts suggest that the impact of the unlock may be less than expected, viewing this as an opportunity for long-term investors. However, regular unlocks are anticipated in the future. For instance, no one speaks of previous price targets for DYDX, as the supply has massively increased over three years since its launch, preventing the token price from rising despite capital inflow.
In conclusion, Celestia’s token unlock stands out as a significant development influencing market dynamics and investor behavior. Investors continue to monitor the long-term effects of such actions.
