The bull season of 2021 spotlighted new stars in the cryptocurrency market, offering significant gains to investors. However, the bear market in 2022 pushed many altcoins to the brink of extinction. The upward trend at the beginning of 2023 suggests the emergence of new stars, with Injective (INJ) experiencing a 3,300% increase from its lowest price level in 2023. A significant token unlock is scheduled for January 20, involving around $150 million worth of tokens.
Investors have historically been wary of token unlocks, fearing the negative impact on prices as new tokens enter circulation. The upcoming unlock for Injective is tied to genesis distribution contracts that remain locked. On January 20, 3.67 million INJ tokens will become available for the team and advisors to control and potentially sell.
The unlock process will release 3.33 million tokens worth $125 million for the team. Advisors will gain ownership of tokens valued slightly over $12 million, reflecting profits since INJ’s market entry. The table from TokenUnlocksApp, dated January 17, provides updated information on the airdrop.
Developments continue for Injective, which is currently trading just under $40, below its previous all-time high (ATH) of $45.28. This price reflects a 3,300% jump from its December 2022 low of $1.21. The upcoming INJ unlock could impact prices amid market uncertainty following the Bitcoin ETF’s influence.
A previous unlock on August 20, 2023, worth $22.05 million, led to a price drop of over 12%, challenging investors. INJ’s price fell from $7.88 on August 18 to $6.92 by August 28. Considering these factors, a potential price drop following the upcoming unlock is within the realm of possibility.