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This Cryptocurrency Will Unlock $65 Million in Tokens This Week
Referee (ARB), one of the Ethereum (ETH) the second most popular tiers, will unlock over $65 million in tokens on July 16. This will increase the circulating supply of Arbitrum’s native token by nearly 3% and could impact its price, creating selling pressure.
Finbold recovered this data from TokenUnlocksApp on July 13, highlighting cryptocurrency cliff unlocks for the next seven days. In particular, Arbitrum stands out as the largest unlock in US dollar face value, accounting for 37% of the $174.88 million.
Specifically, the team will end vesting contracts with 56.13 million ARB, worth $39.39 million. Meanwhile, private investors will have $25.63 million of 36.52 million ARB to sell, realizing profits on retail buyers. At the time of writing, Arbitrum is trading at $0.69 per token in a worrying year-to-date downtrend.
Cliff Arbitrum (ARB) unlocked. Source: TokenUnlocksApp
Arbitrum Historical Unlocks and Sales Activity
Arbitrum’s vesting contracts unlock new tokens every month as part of ARB’s release schedule and inflation model. Finbold has reported these unlocks and it is noteworthy to see how the face value has dropped over time.
Interestingly, the highest inflation occurred in March, with a Massive unlocking of 1.11 billion ARBwhich at the time was worth $2.06 billion, for an average of $1.85 per token.
In Aprilrecurring monthly unlocks have begun, releasing the 92.65 million ARB from each month’s schedule. At the time, the unlock had a face value of $105.62 million at $1.14 per token. This represented a 38% drop in Arbitrum’s month-over-month (MoM) price.
Later, the following month it was marked from another sell-off of 92.65 million ARBs worth $92.44 million. Arbitrum has seen losses of about 12% since April and 46% from March to May. Finally, the Abritrum unblocking was worth $85.37 million in Junelosing 7.6% on a monthly basis and accumulating even greater losses than in previous months.
These token unlocks are a warning about the economic effects of supply and sales inflation for cryptocurrencies. They highlight the importance of cryptocurrency investors and traders study the fundamentals of a cryptocurrency before investing capital.
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