It was reported that Apecoin’s native tokens, APE, slid early Friday ahead of a major token unlock by which nearly 25 million APE tokens would be released, anticipating an increase in selling pressure. It was estimated that the token unlock would release almost eight percent of the current circulating supply.
As a part of a preplanned token unlock, 25 million tokens released would gradually lead to a final supply of 1 billion APE. The current supply of APE is 314 million.
The supply of 1 billion APE tokens has a definite agenda. A total of 62% of the supply would be contributed to the ecosystem fund, 16% to ApeCoin issuer Yuga Labs, and 8% to Bored Ape Yacht Club (BAYC) founders. The remaining 14% would be handed over to the independent launch contributors.
The tokens would be unlocked for Yuga and BAYC founders on March 2023. This weekend will unlock the APE tokens destined for the contributors.
It is to be noted that there is not any clear information about these contributors. However, according to the crypto research firm Delphi Digital, it was “reasonable to deduce that it includes investors such as a16z, Animoca Brands, and FTX,” taking into account the funds provided for Yuga Labs and ApeCoin DAO.
Consequently, investors expected a massive increase in the selling pressure of APE. The Delphi analyst commented that:
Though the coin has lost almost 21% of its value in the previous month, some analysts pointed out that the APE staking would permit holders to borrow cryptocurrencies against their Bored Ape NFTs. Thus, APE staking would contribute to the hike in the APE value.
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Source: Cryptocurrency - investing.com
