Axie Infinity, the NFT-based video game platform, released 21.5 million AXS tokens regarding the token unlock event, which led to considerable sell pressure on the token.
According to the data released by TokenUnlocks, 21.5 million tokens were released on 24 October, after the vesting period. These tokens were released as inflationary tokens, taking into account the losses the company had faced during its bearish period.
As per the details provided by TokenUnlocks, almost half of the unlocked tokens were released for providing to the members of the developer team, advisors, and early investors. The rest of the tokens, almost 11 million, were intended for future staking rewards, play-to-earn rewards, and ecosystem funds.
As during the vesting period, the early investors and insiders are required to hold their funds without selling them for a reasonable period of time, there arise serious selling pressures when the tokens get unlocked and investors sell their holdings.
Following the prior unlocking event, the AXS price dropped as pointed out by a community member in a tweet. According to Etherscan, Arca, the digital asset firm, received $4 million while taking part in an AXS private sale on October 24.
Similarly, another investor received an amount of $1.7 million and moved it to the Binance account. Consequently, the platform had been struggling through these market movements by which AXS fell to a 90-day low of 8.21 on October 24.
AXS Price on 24 October
Though after the fall of the price, the coin managed to bounce back slightly, with the current trading price of $9.16, it had not been able to show a significant rise. Notably, the current price of the coin depicts a 26% fall from its last month’s price.
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Source: Cryptocurrency - investing.com
