SNEAK PEEK

• The imminent release of 249.8M tokens causing market jitters.
• Lookonchain analysis reveals sell-offs after 1INCH unlocks, impacting price. 
• Notable addresses, including Alameda, swiftly deposit 1INCH on exchanges post-unlock.

Lookonchain, a renowned blockchain analytics platform, has unearthed intriguing insights into the imminent unlocking of 1INCH tokens. With 249.8 million 1INCH coins set to be released in three days, equivalent to a staggering 16.65% of the entire supply, the crypto community eagerly awaits the consequences this unlocking may have on the market. Based on Lookonchain’s analysis, a series of sell-offs have historically followed previous unlocks, causing notable price drops. 

1/ Note that 249.8M #1INCH ($100M) will be unlocked after 3 days, 16.65% of the total supply.

Will this lead to a huge sell-off in the market?

A thread. 🧵 pic.twitter.com/AQVRqz0tca

— Lookonchain (@lookonchain) May 29, 2023

Lookonchain’s research reveals a captivating narrative surrounding the previous unlock events. The first two unlocks were accompanied by a prolonged decline in 1INCH’s price, with the second unlock notably affected by the UST/LUNA crash. However, the sell-off following unlocks seems to have exerted the greatest influence on price drops. Notably, addresses associated with influential entities such as Alameda wasted no time depositing their 1INCH holdings on exchanges immediately after unlocking.

Understanding 1INCH’s financing is crucial to comprehending its token distribution landscape. Investors participating in the Seed and Series A rounds will receive 19.5% of the total supply, acquired at an average cost of approximately $0.05 per token. Moreover, an impressive $175 million was raised in the Series B round, with a token sale price of $1.5.

While some investors, like Binance Labs and Pantera Capital, have chosen to retain their 1INCH holdings, the historical sell-off patterns after unlocks hint at potential volatility ahead. Traders and enthusiasts are advised to tread cautiously as they navigate this anticipated market turbulence.

As the countdown begins to 1INCH’s significant token unlock, Lookonchain’s exclusive data provides a captivating glimpse into the past sell-offs and price fluctuations surrounding such events. Investors and traders alike must prepare themselves for potential market upheavals.