• 22 June, 2024
News

Unprecedented Lido Finance Token Unlock Event Sparks Speculation and Fear

The LDO token price declined sharply today due to market speculation that a large number of tokens will be released soon. According to crypto analytics firm Token Unlocks, the last major release of LDO tokens is scheduled for August 26, 2023, unlocking 8.51 million tokens valued at approximately $15.67 million. This would represent 99% of all LDO tokens being fully unlocked and available to investors. 

Check out this important announcement from Token Unlocks about the upcoming LDO token unlock event on August 26, 2023:

The looming unlock has sparked heated debate within crypto circles on social media, with some predicting it could lead to a massive selloff and crash in LDO’s price. Supporters counter that the unlock has been long-planned and represents investors who have held the token for years finally gaining access to their funds. Detractors, however, argue that the sudden injection of millions of tokens could overwhelm buy orders and trigger panicked selling.

Lido Finance, which offers Ethereum staking services, held a series of locked token distributions over the past two years to incentivize early adopters. With the final round of unlocks approaching, analysts caution that extremely high selling volume could occur if investors immediately liquidate their unlocked tokens. Lido representatives have yet to comment on how the project plans to manage the unlocks.

At the time of writing, LDO is trading at $1.85, recording a slight price decrease of about 1% in the last 24 hours. However, most indicators are bearish in the short term. The RSI is in the neutral region, suggests the market can go either way. The MACD line has crossed over the red signal line, indicating that the market is trading in favour of bulls.

For now, the crypto world awaits August 26 with bated breath. Some warn that the unlock could bring reckoning, while others believe existing holders would keep buying surplus tokens. Regardless, Lido’s ability to maintain stability and confidence through the unlocks would prove a critical test for the young DeFi protocol. Traders are advised to monitor LDO price action as the critical date nears closely.

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