$MANTA #MANTA ๐๐
BIG WARNING ๐จ
@Manta is an Ethereum Layer 2 Network, will unlock 7.12M tokens worth $4.12 Million on September 18. This unlock represented 0.71% of its circulating supply. The release was divided as follows: Ecosystem +1.59% (+3.37M tokens), Foundation +1.39% (+1.88M tokens), Advisor +2.31% (+1.87M tokens). Today, the price of Manta is at $0.65 showing a monthly slight decrease of 2.00%. ๐
WHAT IS THE UNLOCK IMPACT?๐ฑ
When a significant number of tokens are unlocked and potentially sold on the market, it can create a supply shock. This sudden increase in available tokens can lead to a decrease in price due to the basic economic principle of supply and demand. But it is a notably short-term price drop, possibly because a significant portion of these tokens are being sold and retailers are shorting the token.
NOTE: token unlocks lead to price drops. If the project has positive momentum or the demand for the token is high, the price may remain stable or even increase despite the unlock.
What is INVESTOR Sentiment? ๐ค
It can lead to uncertainty and fear due to the potential for increased price volatility. On the other hand, they can also be viewed positively as they often represent a milestone in a projectโs roadmap and can attract new investors looking to buy at a potentially lower price point. ๐ค
History of #TokenUnlocks
A research study looked at over 5000 events where tokens were unlocked. The study found interesting patterns that showed how the supply of tokens and market feelings are delicately balanced.
1.Small Unlocksโ (from 0% to 1%). it doesnโt really affect the price of the tokens.
2.Big unlocksโ (More than 2%) it tends to have a noticeable negative effect.
BUT, unlocks can vary based on various factors, including the overall state of the market and investor sentiment at the time of the unlock.
ANALYSIS: These Manta Small Unlocks will not affect the price. While it increased market volatility, they also present unique opportunities for investors.
