THE BIGGEST SUPPLY IN CRYPTOCURRENCY

in Tron Fan Club2 years ago

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If you don't know already, I will like to let you know that last week, the total cryptocurrency market cap reached 1 trillion dollars for the first time in months. As with all assets you could think of, the price of a cryptocurrency is determined by supply and demand besides block rewards, staking rewards, and inflation which is happening in many countries. One of the biggest supply in cryptocurrency is selling by early investors. According to the recent annual report by token, we got to know that over 100 billion dollars worth of cryptocurrency early investors will have in the next year.

Of course, the result of sell pressure by the early investors could crash the price of these cryptocurrencies. The first token unlocks report of the year shows in detail which coin and token may likely see huge sell pressure and also exclaim as this could affect the crypto market. The token unlock tells you in detail when the first supply of tokens or coins will be released and to the specific type of investor. You should know that there are a lot of different kinds of vesting methods though the most significant are linear vesting and Cliff vesting. Just like the name suggests, Linear vesting is when coins or tokens are unlocked bit by bit, that is, not at once and it is every time a new block is added to the blockchain.


On the other hand, a cliff vesting schedule is where a fixed supply of a coin or token is unlocked at the specific date that has been given. I will say the linear vesting schedules are unusually better for the price action of a coin or token due to the fact that any selling by the early investors is spread out over a very long time. Conversely, cliff vesting schedules usually lead to a lot of short-term sell pressure in the price action of the particular coin or token, and also sometimes, the cliff vesting schedule does have any impact on the price of a token or coin. A big example of this is Solana, the SOL coin of Solana had a single vesting cliff. The whole SOL coin was unlocked in January 2021 and the price of SOL did very well.

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