BIT rises slightly after BitDAO unlocks 187.5 million tokens

The newest crypto platform on this week’s list of token unlocks is the decentralized construction economy project BitDAO. Unlike some peer projects, its native token BIT has increased throughout the process.

On February 14th, BitDAO unlocked 187.5 million BITs as part of a scheduled release. At current prices, the total value of unlocked tokens is approximately $106 million.

Additionally, unlocked accounts for approximately 2% of the entire BIT supply. The next unlock is on March 15th.

The BitDAO unlock schedule plans to release a similar number of tokens each month through June 2024. Such supply releases are intended to regulate investor interest, but often result in short-term price volatility.

When a large number of tokens flood the market, it increases the circulating supply and reduces demand, thereby reducing the price of the asset. Furthermore, this effect is exacerbated during bear markets.

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Building BitDAO Decentralized Economy

BitDAO is a platform that supports the architects of the decentralized economy. According to the official documentation, it is an “open platform for proposals voted on by BIT holders, independent of chains and projects”.

The ttokenomic of its governance token BIT is not controlled by venture capital like other crypto projects. Currently, about 70% of the total token supply of 10 billion is unlocked, but not all of it is in circulation. The 1.16 billion tokens in circulation give it a market capitalization of approximately $666 million.

About 45% of the total supply will hit the market within the next 16 months. Additionally, 30% of the total is allocated to the BitDAO treasury for administrative purposes.

On Feb. 14, BitDAO detailed its latest governance vote and funding request. Mantle is a product of BitDAO, which provides a high-performance Ethereum layer 2 network with a modular design.

BIT price increased slightly

Unlike The Sandbox and dYdX, where the value of The Sandbox and dYdX fell after the tokens were unlocked yesterday, the price of BIT kept increasing.

As a result, the BIT price is up 1.5% on the day, trading at $0.569 at press time. However, the token fell by 6% yesterday before the unlock event.

Source: TradingView

The price of BIT has risen 8% in the past two weeks, in line with the trend of the broader market, rather than a downward trend. However, the administrative asset is trading down 81.6% from its November 2021 all-time high of $3.1.

  • 197 votes passed the $100 million buyback plan, BitDAO BIT price increased by 20%
  • BLUR drops 87% after unlocks 360 million tokens, admits NFT Wash trade

board pass

According to BeinCrypto

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