ID, CTSI, and YGG: Over $30 million worth of cliff token unlocks to watch next week

• Space ID, Cartesi, and Yield Guild Games have some of the most voluminous token unlocks scheduled for next week.
• ID, CTSI, and YGG worth millions of dollars are set to flood markets in a cliff unlock.
• Increased token supply could create massive sell pressure. 

The week starting April 21 does not have many significant unlocks lined up, with the only ones standing out being from three ecosystems. Investors should expect volatility around the calendar dates of the token unlocks and maintain cognizance that this event is often a bearish catalyst.

Also Read: What to expect from Bitcoin post halving, less than 70 blocks to go

Brace for these three token unlocks next week

Cryptocurrency token unlocks are typically considered bearish events for asset prices. Unlocked tokens enter circulation, increasing selling pressure on the asset across cryptocurrency exchange platforms.

First in line is the Space ID ecosystem, due to release 18.49 million ID tokens worth $14.16 million on Monday, April 22. Constituting 4.29% of the network’s circulating supply, the tokens will be allocated to the ecosystem fund, the foundation, community airdrop, and towards the network’s marketing endeavors.

The Cartesi network will follow, releasing 21.43 million CTSI tokens worth $4.36 million of Tuesday, April 23, issued to the team. The tokens will make up for 2.73% of the network’s circulating supply

Gaming ecosystem, Yield Guild Games, will be unleashing 16.69 million YGG tokens worth $14.01 million on April 27, making up for 5.33% of its circulating supply.

While token unlocks are generally considered bearish catalysts, those cryptocurrencies that unlock over 3% of their circulating supply are often the ones that suffer a correction in their price.

Reasons for token unlock events

Cryptocurrency projects have a defined roadmap from the time they launch. The ecosystem carefully plans how it will release specified proportions of its token supply into circulation on a batch-by-batch basis. The goal of such a structure is to promote the stability of the token while fostering long-term health.

Token allocation varies, depending on how they have been earmarked. The recipients determine whether selling pressure should be expected or not, depending on their assumed selling appetite.

Traders tend to keep an eye out for such events because of their nature to cause price volatility. Proactive traders know how to make a profit by trading around these events. The other lot is often rekt as part of exit liquidity.