Tomorrow, Arbitrum will perform a “Cliff Unlock” and release fresh ARB tokens to the crypto market, according to data from the Token Unlock app. The app shows that the layer-2 project’s upcoming Token Unlock event will include most of the tokens to be released this week.
Real-time data on the app indicates that this particular Token Unlock is estimated to inject around $110 million into the crypto market. Arbitrum will unlock 92.65 million ARB, equivalent to 3.49% of the circulating supply. This event will take place exactly one month after the previous Token Unlock, where the project released 1.11 billion ARB, equivalent to $2.09 billion, into the cryptosystem.
It is important to note that Token Unlock has emphasized that the upcoming program will be a “Cliff Unlock,” meaning that no tokens will initially be released until a certain date, known as the “cliff.” This event is where projects release large amounts of tokens on the designated release day.
Token Unlocks, such as the upcoming event, often have an economic impact on the crypto market and directly influence the price of the token in question. This often increases the supply of the token, which in turn leads to many traders taking short positions in the short term.
After the last Token Unlock event, ARB fell by more than 25%, with its price decreasing for four consecutive days. The layer-2 blockchain token saw a drop from $1.96 on March 16 to $1.44 on March 19 before staging a recovery, according to data from TradingView.
At the time of writing, the layer-2 blockchain scalability solution was trading at $1.23, recovering from a recent dip. The members of the Arbitrum community are looking forward to the upcoming event, knowing that the overall dynamics of the crypto market can influence the effect of the exercise.
Source: https://cryptobenelux.com/2024/04/15/deze-week-zal-arbitrum-9265-miljoen-arb-vrijgeven-bij-de-uitgifte-van-nieuwe-tokens/
