The Sui Network, known for its fast-paced growth and community support, is on the verge of a notable event. On September 3rd, a massive amount of SUI tokens, worth roughly $18.7 million, will be unlocked.
Given its nature and the significant sum involved, this move could have some implications for the altcoin’s market dynamics in the coming days.
A Rewarding Gesture For The Early Birds?
The details surrounding this unlocking event have been transparently shared with the public. According to Token Unlocks, a crypto monitoring platform, this release will encompass 35.6 million SUI tokens.
This quantity represents roughly 5% of the current circulating supply and interestingly, a predominant portion of these tokens could be earmarked for the network’s early supporters.
🚨 Notable Unlocks Alert 🚨
🗓️ Save the date [ September 3rd ] 🗓️
🔓 In three days, 35.6 million $SUI will be unlocked, equivalent to a value of 18.7 million dollars
🔥 Get ready and mark your calendar!
— Token Unlocks (@Token_Unlocks) August 30, 2023
With this event, chances are that some of the scheduled unlocked tokens could likely be used to reward SUI’s Active Contributors and Early Supporters (ACES) program.
As instituted by the SUI developer, Mysten Labs, earlier this year, the ACES program was crafted as a gesture of gratitude. It aimed to acknowledge and reward those SUI discord members whose contributions were pivotal before the altcoin’s mainnet launch.
Moreover, alongside this unlocking, data from Token Unlocks suggest that SUI also intends to set aside a portion of the unlocked tokens for staking incentives.
With such a significant amount set to unlock, the temptation to sell might arise for some early supporters, especially if a portion is rewarded to Active Contributors and Early Supporters. This could potentially lead to a sell-off.
Historically, massive token unlocks have sometimes resulted in short-term price depressions, given the increased market supply.
Furthermore, the network, which has seen rapid expansion, has also recorded a user base jump from 3 million to 5 million users in a mere 14 days and then further to 6 million active accounts within another three days.
With an addition of approximately 1 million active accounts weekly over recent weeks, such growth rates might cushion any potential bearish impacts.
1 million new accounts in less than 12 hours 😱 pic.twitter.com/4dShywYoGn
— Suipiens 🦍💧 (@suipiens) August 30, 2023
Meanwhile, ranking 89th among larger crypto by market cap, SUI has seen a notable plunge of nearly 10% in the past 7 days. And even in the past 24 hours, the bloodbath continues as the asset records a 1.3% decline with a market price of $0.49 at the time of writing.
Featured image from Unsplash, Chart from TradingView
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