Chainlink unlocks 300 million worth of LINK leads to massive selloff on Binance
On June 21, Chainlink (LINK) unlocked 21 million non-circulating tokens, valued at nearly $300 million. This significant increase in supply may have economic consequences that could impact the price as the tokens are sold off.
According to a report from SpotOnChain, the team sent 18.75 million of the unlocked tokens to a deposit address on Binance, indicating their intention to immediately sell nearly 88% of the inflated supply. At the time of reporting, this amounted to a market value of $265 million.
Additionally, the contract sent 2.25 million LINK to the multisig wallet address 0xD50f, which currently holds over 6 million LINK. This non-circulating supply address still has 391.5 million LINK for future unlocks, worth $5.4 billion, posing a potential threat.
Chainlink has been unlocking and selling its tokens since August 2022. In total, it has unlocked 127 million LINK and deposited 107.7 million LINK to Binance over the past two years. This has resulted in a 26.4% inflation in the circulating supply, which currently stands at 608.10 million LINK.
Interestingly, there have been eight “unlock and deposit to Binance” events during this period, with sell-offs ranging from 6.1 million to 18.75 million LINK. These events have had minimal effects on the price.
As of now, Chainlink is trading at $13.78, showing a remarkable 127.6% gain year-over-year. Despite the supply inflation, the Oracle protocol has performed well and demonstrated growth potential, with an exchange rate of $6 per token in June 2023.
This suggests that LINK has been able to generate sufficient demand over the years. It is worth noting that Chainlink’s Oracle solution is valuable for the growing narrative of real-world assets (RWA).
Traditional finance giants like BlackRock and Franklin Templeton have shown interest in the tokenization of RWA. As these narratives develop and institutional capital flows into the cryptocurrency market, related projects can gain momentum.
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