Why did SUI rise after token unlocking? Perhaps we need a new idea for token unlocking. It is easy to rise in the early stage of unlocking, not to fall.

The normal logic of token unlocking is that oversupply leads to price drop, which is correct.

However, many tokens have experienced sharp rises in the early stage of unlocking.

SUI token unlocked on September 6, and rose 15% in the following three days. 1inch token unlocked on August 30, and soared 25% five days later.

There is also the much-discussed WLD, which started unlocking in August this year, but also experienced a short-term surge at the end of August.

As for the reason.

First, token unlocking will add chips to the project team. They can pull the market at this time and take this opportunity to cash out and leave, so as to avoid the depreciation of the tokens in their hands due to long-term oversupply and no one to take over.

Secondly, in the early stage of token unlocking, investors generally believed that the tokens would depreciate and began to short. In this case, the dealer needs to pull the market to clear some high-leverage shorts.

Therefore, the initial stage of token unlocking should be a time point that we should pay attention to. We can not only look for opportunities to go long, but also wait for higher prices to go short.

Because supply exceeds demand, it will inevitably depreciate, but it will not plummet as soon as it is unlocked. Depreciation is a long-term result. Just like WLD unlocks more than 10 million US dollars of tokens every day, it has also been falling until today after a short rise in the initial stage of unlocking.

However, the current circulation market value of Sui is only 27%, and most of the tokens have not been unlocked. According to the logic we mentioned above, Sui may not be a good choice for long-term investment.