Modular blockchain network Celestia has begun a large unlock of its native token, TIA, valued at roughly $890 million at current prices.
At time of writing, TIA is down nearly 20% in the last week, and is 77% down from its all-time high as the unlock takes place.
Token unlocks are often seen as bearish for a crypto asset as it implies more available supply for selling. However, unlocks don’t always result in corrections or crashes, and sometimes even precede rallies.
In the case of Celestia, roughly 175 million tokens that were previously locked will now be distributed to core contributors, early investors and seed investors, doubling the amount of TIA in circulation.
Crypto analyst Will Clemente says the TIA unlock is largely overblown, with much of the sell pressure being absorbed by over-the-counter OTC investors looking to enter positions after a long reaccumulation period.
“I think this BTC price action has further slid the probability of Thursday’s TIA unlock being bearish towards “no”
6 months of reaccumulation after 80% drawdown, ton of OTC volume, most widely telegraphed unlock in crypto history, 9 figs short, BTC nearing ATHs. Am long right now.”
Recently, Chris Burniske, partner at venture capital firm Placeholder, doubled down on Celestia despite the unlock, and said that anything below $5 for TIA was a prime opportunity for bulls.
Said Burniske,
“What TIA bottom trolls aren’t grasping:
1)Celestia as an ecosystem is firing on all cylinders, with an ideologically committed & diverse set of builders experimenting with zeal. Reminds me of early Bitcoin, Ethereum and Solana energy.
2) The ‘evil VCs’ that’re given liquidity are unlikely to unload as anticipated in October because they see the ecosystem traction and aspirations of the team. Many of TIA’s biggest backers are less short-term oriented than portrayed.
3) When the unlock happens, it’s likely Mr. Market realizes there’s far less sell pressure than these shorts are anticipating, and the shorts get blown out, if they don’t get blown out before.
4) Buyers that have been sidelined, worried about the overhang of the unlock, will both be reassured by positive price action, as well as the reduction of uncertainty, allowing them to take action.
5) TIA market released from its current semi-paralysis.”
At time of writing, TIA is trading at $4.76.
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The post Celestia Corrects As TIA Absorbs $890,000,000 In Token Unlocks Worth 80% of Supply appeared first on The Daily Hodl.