In recent years, dYdX has emerged as a prominent player garnering positive attention from investors and the wider community. However, a recent downturn in the token’s value has raised questions.
According to Lookonchain, “Whale”0x2A25” deposited the entire 1.5M $DYDX ($5.08M) received from dYdX Distributor to Binance 6 days ago, potentially instigating the sell-off.
Compounding the situation, dYdX is poised to unlock 150M $DYDX ($505.5M, 81.63% of Circulating Supply) on Dec 1, with 83.19M $DYDX ($280.35M, 46.15% of Circulating Supply) slated for investors.
The token allocation structure reveals that 50% (500M $DYDX) is earmarked for various entities, and 30% (150M $DYDX) of these tokens will be released on Dec 1.
Massive Notable DYDX Token Distribution
On-chain data further illustrates that the dYdX Foundation has distributed tokens to investor addresses, including a16z crypto, Defiance Capital, and Polychain Capital. Interestingly, a significant portion of these tokens has been bridged. For instance, a16z crypto has bridged 42.69M $DYDX ($143.87M) across multiple addresses.
Presently, 437.4M $DYDX ($1.47B) has been bridged, constituting 43.74% of the total supply, and due to the one-way nature of the bridge, these tokens will be permanently locked in the wethDYDX Smart Contract.
As the impending token unlock date approaches, the market anticipates potential selling pressure. The current market sentiment has reflected in a decline of over 8% in the past 24 hours, with DYDX trading at $3.257.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: calima3d/123RF // Image Effects by Colorcinch