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There is a trend in this bull market, which is the issuance of tokens with low circulation and high valuation. In particular, many VC coins have very small circulation in the early stage, and most of them have less than 10% circulation.
When a token is first listed on an exchange, the market maker uses a small amount of funds to maintain the token at a very high price, attracting "leeks" to enter the market and take over, and then the price continues to fall, attracting more funds to provide liquidity for the subsequent 90% of unlocked tokens.
Therefore, the newly listed tokens in the market recently often open with high market capitalization, and then continue to fall for a long time.
According to Binance’s latest research report, it is estimated that approximately US$155 billion worth of tokens will be unlocked from 2024 to 2030.
If there is no large-scale incremental capital entering this market in the future, the unlocking of such a large number of tokens will inevitably cause the token price to fall sharply in a short period of time.
Therefore, we need to grasp as much information about token unlocking as possible. Most of this information is hidden in the official English website or white paper, and most Chinese investors have no way to find it.
Friends can learn to use the website Token Unlocks, which is a data website that monitors the unlocking information of various tokens. After learning how to use it, we will know the unlocking time and amount of each token, so as to predict the potential selling pressure or market crash risks faced by the market in advance.
Video link https://youtu.be/Jwr33_kEi9A