Token

Rally

<ul>
  
 <li>TIA will experience a large token unlock on October 31 with 175 million tokens or 16. 5% of the total supply to be released.</li>   
 <li>Currently, the token’s circulating market cap is at only 20% of the total supply, this raises eyebrows over consequent pressure on the price of the token.</li>   
 <li>From 1st November an extra 1,000,000 $TIA tokens will be launched daily to reach a total possible supply of $390M.</li> 
</ul>   
<p>For now, let us look at $TIA’s circulating market cap, which is currently at around $870 million and accounts for only 20% of the total supply; fears of a price drop have emerged. The next major unlock of tokens is possible on October 31, which is what market watchers are waiting for.&nbsp;</p>   
<p>This unlock will place 175 million $TIA tokens into circulation which is 16.5% of the total tokens. This unprecedented increase has raised concerns over possible token dilution especially given the fact that $TIA has been on an upward trajectory since its listing and is currently trading 80% down from its all-time high.</p>   
<h2 class="wp-block-heading" id="h-upcoming-token-unlock-and-supply-increase">Upcoming Token Unlock and Supply Increase</h2>   
<p>The first episode is due on October 31st, but this is only the start. From November 1st, an additional one million of $TIA tokens will be released into circulation daily. At the end of this unlock cycle, the total circulation supply of $TIA tokens will have risen to around 390%.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/Token_Unlocks/status/1833076383096185239 
 </div>
</figure>   
<p>If this additional supply cannot be absorbed, there can be considerable pressure on prices. Traditionally, such token unlocks have led to a reduction in the price if there is no corresponding increase in demand to counter the enhanced supply.</p>   
<p>One of the primary concerns in this scenario is the risk of token dilution. With a fully diluted <a href="https://coinmarketcap.com/dexscan/osmosis/1247/" target="_blank" rel="noreferrer noopener nofollow">market cap</a> of $4.54 billion, the increase in available tokens could drive the value of individual tokens downward. Investors and traders are paying close attention to whether $TIA can sustain demand levels high enough to counterbalance the rising supply. Token dilution often leads to decreased prices unless met with corresponding growth in buying interest.</p>   
<h2 class="wp-block-heading" id="h-long-term-sustainability-measures">Long-Term Sustainability Measures</h2>   
<p>However, a few aspects of the $TIA token release schedule indicate longevity as part of $TIA’s strategy. This way of releasing tokens in the subsequent years instead of releasing them all at once could also alleviate the effects of dilution in the short term.&nbsp;<br>In addition, governance mechanisms can constrain <a href="https://cryptonewsland.com/jasmy-will-play-a-crucial-role-in-the-future-of-free-flow-of-data-and-information-jpyd-launch-could-trigger-jasmy-pump/" target="_blank" rel="noreferrer noopener">token flow</a> and, thus, avoid sharp fluctuations in the market. However, the share price response to the October unlock remains critical in the $TIA’s future.</p> 
<p>The post <a href="https://cryptonewsland.com/is-tias-rally-at-risk-175m-tokens-unlocking-amid-dilution-concerns/">Is $TIA’s Rally at Risk? 175M Tokens Unlocking Amid Dilution Concerns</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Is $TIA’s Rally at Risk? 175M Tokens Unlocking Amid Dilution Concerns

Table of Contents

Crypto News Land

Other articles published on Sep 9, 2024

Zilliqa price prediction 2024-2030: What’s the future for ZIL?

Weekly Article Recap: 8/26-8/30

Ethereum’s Pivotal September – Surging Adoption and Key Price Catalysts

Martin Shkreli’s claim he forfeited all copies of Wu-Tang album ‘dubious,’ says PleasrDAO

Nigeria’s EFCC Blocks Bail for Binance Executive Despite Health Concerns: Report

Polygon Upgrades $MATIC Token to $POL: What It Means for the Network and Holders

Join our free newsletter for daily crypto updates!