Altcoins are showing great signs of life. Now that Bitcoin’s ($BTC) moment in the spotlight has ended and the Ethereum ($ETH) rally is taking shape (despite the current market retracement), it is only a matter of time before altcoins start to make those famous daily double-digit gains. But not all altcoins are created equal, and when searching for the best cryptocurrency to buy now investors have to pay attention to tokenomics and token unlocks.
There is a minefield of hidden sell pressure heading into 2024, with more and more major unlocks for leading tokens. Injective ($INJ) unlocked $139 million in tokens of January 21st, which could hamper chances of a strong recovery once the carnage has passed for the broader market. Presale investors are eyeing the Galaxy Fox ($GFOX) presale, betting on deflationary tokenomics this year.
Injective ($INJ) Last Round Of Token Unlocks: $139 Million Of Sell Pressure?
Injective has been among the strongest performers in the final quarters of 2023 and the early parts of this year. However, despite being a top crypto to buy, token unlocks have made investors jittery with a cliff unlock occurring on the 21st of January.
A total of 4.33% of the circulating supply was unlocked, with the bulk going to the team and a portion going to advisors – two of the most likely groups to sell the token. $139 million of sell pressure will be making its way to the Injective order books over the coming weeks, and retail will be the ones charged with absorbing it. That’s a tall order, given the devastation of the market over the past week from Grascale and FTX dumping their $BTC.
Unlocks are always a tough time for price action. The team deserves to enrich themselves after building this top-of-the-line blockchain. Built using the Cosmos SDK, Injective has been custom-built for financial applications, including basic primitives such as an on-chain order book and MEV resistance. Still, this doesn’t change the fact that retail bidders will be the ones buying the team’s bags and eating the loss.
Galaxy Fox ($GFOX) Presale Crosses $2.9 Million
Galaxy Fox has been attracting increased attention and capital over recent weeks as investors begin to understand the upside of holding deflationary assets in the bull market. Funding recently crossed $2.8 million, and nothing will stop this new hybrid token from smashing the $5…