Categories: Crypto News
| On
2023-12-01 12:22 PM

DYDX Token Plunges After $485 Million Unlock, Whales Transfer Millions

  • Massive DYDX Token Unlock: 150 million DYDX tokens, worth about $485 million, were unlocked, impacting the market dynamics.
  • Whale Wallet Activity Increases: Large wallet investors moved significant amounts of DYDX tokens to exchanges, notably 6.81 million to Binance.
  • Restrictions on Bridged Tokens: Bridged DYDX tokens cannot be sold on centralized exchanges, potentially limiting the immediate selling pressure on the asset.
By Nonhlanhla

In the crypto market, the DYDX token faces a potential decline after a significant token unlock event. On Friday, 150 million DYDX tokens, valued at $485 million (approximately ZAR 9.06 billion), were unlocked, affecting market dynamics.

Large-Scale Token Unlock and Market Impact

This substantial token release led to increased activity on both centralized and decentralized exchanges, potentially heightening selling pressure on DYDX.

Whale Wallets Moving Tokens to Exchanges

Significant transactions were noted, including three whale wallets transferring 6.81 million DYDX tokens, worth $21.46 million (around ZAR 401.01 million), to Binance.

Bridging and Selling Restrictions

DYDX tokens bridged to the native dYdX chain cannot be immediately sold on centralized exchanges, potentially limiting peak selling pressure. For instance, a16z cannot sell its 42.69 million bridged DYDX tokens, valued at millions, unless there’s exchange support for the dYdX chain.

Non-Bridged Tokens Affecting Exchanges

Investors who haven’t bridged their DYDX tokens are likely sending them to exchanges. This includes $21.46 million (about ZAR 401.01 million) worth of DYDX moved to Binance.

Rapid Influx of Tokens to Binance

A rapid deposit of 6.25 million DYDX tokens, valued at $20 million (approximately ZAR 373.6 million), was recorded on Binance within just 45 minutes.

For South African crypto investors, these events underscore the importance of understanding how token distribution and unlocking events can significantly influence the market, particularly in terms of price volatility and trading opportunities.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: dYdX