Avalanche sell-off alert: Avalanche (AVAX) is facing a tough week because almost $400 million of its tokens will be sold. This sale is due to the release of tokens that were initially distributed when Avalanche started. It adds to the regular creation of new tokens that happens in systems like Avalanche’s, where token holders help maintain the network.
On February 21, contracts will unlock 9.54 million AVAX valued at $376.61 million based on current prices. This information was obtained from TokenUnlocksApp on February 17.
Avalanche makes up more than 86% of the platform’s $433.94 million in unlocks for the next week.
This big release is equal to 2.6% of the 367.51 million AVAX available right now. Also, it’s 27 times bigger than the daily trading amount of $13.80 billion reported by CoinMarketCap.
Avalanche token sell-off distribution
The ‘Team’ will get 47% of the money available this year. Starting February 21, team members can sell 4.50 million AVAX, which is valued at $177.62 million right now.
Also, ‘Strategic Partners’ and the ‘Foundation’ will add 2.25 million and 1.67 million AVAX to their funds, respectively. This means they could later sell AVAX worth more than $154.6 million.
The biggest amount of funds becoming available will be 1.13 million AVAX, worth $44.40 million, for the community giveaway.
AVAX price analysis
Right now, AVAX is being sold for $39.46 each. Since October 2023, Avalanche has really gone up in value because more money is going into DeFi.
History tells us that AVAX was really hurt during the last time tokens were released on August 26. Finbold also issued a warning like this one before, telling investors that there might be a big sale of $101 million worth of the same 9.54 million AVAX.
The price of Avalanche fell from $12.88 on August 1 to $10.81 on August 29, and then to $8.90 by September 23. Basically, Avalanche’s value dropped more than 30% since August 1 and 18% from a high point three days after a certain event until a month after that.
So, people who invest in Avalanche and trade cryptocurrencies should be very careful in the coming days. The crypto market changes a lot and can be hard to predict, because big players and those who make the market move are always trying to make the most money.
Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.
