-
Some
175
million
of
locked
up
TIA
will
be
released
on
Oct.
30
including
to
early
investors,
increasing
the
token’s
supply
by
80%. -
The
unlock
may
lead
to
“some
pronounced
effects,”
as
the
amount
of
released
tokens
is
multiple
times
larger
than
the
average
daily
trading
volume,
Anagram
partner
David
Shuttleworth
said.
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The
native
cryptocurrency
of
data
availability
blockchain
Celestia
(TIA)
braces
for
volatility
due
to
its
massive
supply
event
on
October
30,
which
will
nearly
double
the
number
of
tokens
in
circulation.
Some
175
million
of
previously
locked-up
TIA,
80%
of
the
current
supply,
will
be
released
on
Wednesday,
in
the
largest
single
unlocking
event
since
the
token
was
launched
last
October,
Tokenomist
data
shows.
That’s
$920
million
worth
of
tokens
with
prices
slightly
above
$5
on
exchanges.
Core
contributors
are
scheduled
to
receive
58
million
($298
million)
TIA
tokens,
per
Tokenomist.
65
million
($332
million)
tokens
are
allocated
to
early
investors
of
the
project’s
series
A
and
B
funding
rounds,
with
another
52
million
($268
million)
tokens
for
seed
investors.
Cryptocurrency
projects
often
lock
a
part
of
the
token’s
supply
and
release
it
gradually
to
prevent
early
investors
and
insiders
from
selling
in
large
quantities
immediately
after
they
get
the
allocations.
When
the
tokens
are
unlocked,
they
become
available
to
sell,
and
thus,
such
events
are
usually
considered
bearish;
often
they
induce
price
drops.
However,
sometimes
investors
front-run
and
may
sell
before
the
unlocking
happens.
In
TIA’s
case,
prices
have
tumbled
as
much
as
80%
from
the
February
peak
of
$21,
and
have
consolidated
in
the
$4-$6
range
for
multiple
months.
Meanwhile,
funding
rates
for
TIA
perpetual
futures
sit
in
deeply
negative
territory,
reaching
a
-90%
annualized
rate
on
crypto
exchange
Binance,
CoinGlass
data
shows.
This
suggests
traders
are
expecting
declining
prices
or
TIA
holders
are
hedging
their
exposure
leading
into
the
unlock.
“There
could
be
some
pronounced
effects,”
David
Shuttleworth,
partner
at
Anagram,
told
CoinDesk,
noting
that
the
amount
of
tokens
being
unlocked
is
multiple
times
larger
than
the
average
daily
trading
volume
between
$50
million
and
$200
million
over
the
past
month.
“The
broader
timing,
however,
is
favorable,”
he
added,
with
bitcoin
(BTC)
trading
near
all-time
highs
and
other
majors
including
ether
(ETH)
and
solana
(SOL)
also
performing
well.
Given
the
broad
crypto
market
rally,
the
probability
of
TIA
surprising
traders
with
a
rally
following
the
unlock
has
increased,
according
to
well-followed
crypto
analyst
Will
Clemente,
founder
of
Reflexivity
Research.
“This
BTC
price
action
has
further
slid
the
probability
of
Thursday’s
TIA
unlock
being
bearish
towards
‘no,'”
Clemente
said
in
an
X
post.
“6
months
of
reaccumulation
after
80%
drawdown,
ton
of
OTC
volume,
most
widely
telegraphed
unlock
in
crypto
history,
9
figs
[figures]
short,
BTC
nearing
ATHs,”
he
added.
Am
long
rn.”