- Only half of +$1 billion TIA from token unlock could hit the market.
- Will the reduced sell-off risk boost TIA prospects?
According to an OTC (over-the-counter) dealer, Celestia’s over $1 billion worth of TIA token unlock might not experience as intense sell pressure as previously projected.
Taran Sabharwal, founder of crypto OTC firm Stix, projected that the sell-pressure could be half of the token unlocks (188.5 million tokens), as only half have been unstaked for sell-off on October 31st. He said,
“We’ve summarised that a total of 92.3M $TIA will be liquid post unlock, which would act as the upper bound of overall spot selling pressure.”
He added,
“This equates to a max selling pressure of ~$460M. What is also interesting here is that this accounts for <50% of the total cliff unlocks, which means that the sell pressure is half of what people have been expecting.”
Source: STIX
Better for TIA price?
Commenting on the potential impact of the unlock on TIA price, Sabharwal said it would be a bullish signal for spot buyers as more shorts opened during the first unlock would unwind.
“We expect a lot of these shorts to continue winding down, partially negating the spot-selling pressure. This funding reset may be a bull signal for spot buyers.”
Other users echoed the bullish outlook and expected any potential dip to be a good re-entry for long positions. One
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Author: Benjamin Njiri
