Is a massive dump coming for some major altcoins? In the month of May, more than $3 billion worth of tokens will be released from early investors in projects such as Sui and Pyth Network. For example, they both account for $1 billion in tokens that will be released.
Why are these tokens suddenly released?
People who can get involved in certain projects early often make agreements about sales moments. They often receive the tokens at a large “discount” but can only sell them after months or sometimes even years.
These types of agreements are there to prevent these investors from immediately dumping when the tokens come on the market.
These projects include Sui. Of these projects, $1.15 billion worth of tokens will be released for Series A and Series B investors on May 31.
For Pyth Network, this is the second largest token release this month. On May 20, this will amount to 2 billion tokens, which together are worth approximately $ 1.1 billion.
Apart from these projects, these include names such as Avalanche, Aptos, Arbitrum, Starknet, Optimism and Immutable; which together will see the release of approximately $700 million worth of tokens.
What does this mean for the market?
For the projects in question, this could mean that the tokens make a belly slide this month. After all, it is usually not good if these amounts of tokens are released, as they can all be sold.
Other altcoins and Bitcoin may benefit from this. It could be that the investors in question sell their tokens and then buy back other projects.
Furthermore, the same can of course happen to investors who are already in the projects and can always sell their tokens. They can anticipate the release of the tokens and get their money’s worth now.
Do you own one of the mentioned tokens? And does this news affect your decision to hold the tokens in question this month?
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