LD Capital Storj Short-Term Liquidity Analysis

LD Capital Storj Liquidity Analysis

Author: Jaden

1. Project Introduction

Storj is an open-source decentralized cloud storage network that aims to provide censorship-resistant, secure, and affordable storage services primarily for enterprise clients. The distinctive feature of the Storj network is the introduction of satellite roles that connect users with storage nodes, acting as coordinators within the network. The technical architecture of Storj focuses on data storage, retrieval, and repair, as well as data auditing and reputation management for satellites and storage nodes. In terms of storage technology, Storj uses erasure coding to ensure file integrity and employs satellites to manage and track data location and data audits. The storage services can be paid for using its token.

Project Development Milestones

• ARK Invest acquires European ETF issuer Rize ETF Limited.
• When we say institutions are entering cryptocurrencies, what institutions are we actually referring to?
• Starknet’s Volition Analysis The Perfect Interpretation of Data Security and Cost Control

• 2014: Storj was founded.

• 2014-2016: Test version v1 was released.

• 2017: Version v2 was launched.

• 2020: Version v3 was officially released.

• February 2023: Storj Next version will be adopted, which introduces permanent storage functionality and token storage rewards.

2. Financial Situation

The total supply of STORJ tokens is 425 million, with a circulating supply of approximately 394 million, accounting for 93% of the total supply. The remaining portion is held by the official team. The circulating supply of STORJ tokens experienced significant changes in the second half of 2022, mainly due to adjustments made by the official team to the long-term locked portion.

After the token sale in 2017, the official team held 245 million STORJ tokens. Starting from December 2018, the official team divided the 245 million tokens into 8 portions, with each portion consisting of 30.625 million tokens. Before 2020, a portion of tokens was unlocked and locked every quarter to maintain a constant circulating supply. However, due to the pandemic, the official team made the first adjustment to the long-term locked portion of tokens in 2020 and entered a period of frequent adjustments in 2022, transferring most of the tokens to wallet addresses reserved for operations.

According to the latest announcement, tokens unlocked from the third quarter of 2022 to the third quarter of 2023 will be transferred to the operational reserve wallet, leaving only 2 portions of tokens unlocked. (Whether the remaining portion will be unlocked will be announced 45 days in advance by the official team.)

Currently, the top 10 addresses hold 20.1% of the locked tokens and team multi-signature wallet, centralized exchanges hold 15.4%, and the remaining addresses hold 32.3%.

In terms of on-chain address activity over the past six months, there have been two active periods, one in July and the other in September. There is a high correlation between price fluctuations and on-chain activity. Whether high on-chain activity represents large holders accumulating positions needs to be comprehensively judged based on factors such as changes in holding addresses and the degree of price fluctuations.

According to the analysis of large transactions in the past 30 days, the main active addresses include (the following calculations are for convenience and are subject to modulo processing):

1) Address 0x3313: The activity of this address started on September 15th. It has been gradually withdrawing 25.572 million STORJ from Binance and OKEx, accounting for 6.07% of the total token supply. Among them, 16.26 million tokens were transferred from Binance and 9.31 million tokens were transferred from OKEx.

2) 0x0528c2/0xfd52b5/0x41ed42/0xcb1c98: Highly correlated addresses. Some of these addresses have been continuously sending small amounts of tokens to exchanges since June 2023, suspected to be originally locked tokens. Since September 1st, the aforementioned highly correlated addresses have transferred 15.8 million tokens to Binance via 0xe6026, and the calculation for tokens transferred to OKEx is not provided due to the involvement of too many addresses.

3) Storj team: Transferred 2.5 million tokens to Binance. Currently, the wallet holds 6.5 million STORJ tokens.

III. Summary

The main fundamental updates of the project occurred in February this year. In terms of funds, the team started unlocking a large amount of tokens in the second half of 2022. The currently unlocked holding amount should exceed 30%. It is necessary to pay attention to the team’s selling situation. Address 0x3313 made a large withdrawal from the exchange, and the possibility of this address being related to the team cannot be ruled out.

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