Lookonchain: Will the unlocking of 1INCH cause a large-scale market sell-off?

Will 1INCH unlocking trigger a market sell-off?

2.4981 billion 1INCH (worth 100 million USD) will be unlocked in 3 days, accounting for 16.65% of the total supply. Will this lead to a massive sell-off in the market? Lookonchain has conducted an analysis based on previous unlock data.

According to the data, the price of 1INCH has been declining for a long time after the first three unlocks. The price drop after the second unlock was also influenced by the UST/LUNA crash. However, the price drop after the first and third unlocks was mainly due to selling after the unlocks. Some investors sell their unlocked 1INCH by depositing it in exchanges, such as addresses related to Alameda. Some investors, such as Binance Labs and Blockingntera Capital, do not sell their 1INCH after unlocking.

In terms of funding, seed and Series A investors will receive 19.5% of the total supply, with an average cost of about $0.05. $175 million was raised in the Series B funding round at a token sale price of $1.5. Today, the price of 1INCH is $0.4. Based on the speculated token sale price, seed and Series A investors will receive an 8x return on their initial investment, while Series B investors will lose 73% of their funds.

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Reference: https://twitter.com/lookonchain/status/1663110670001532933

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