Known for its rapid growth and community support, the Sui Network is on the verge of a remarkable event. On September 3, there will be a huge amount of SUI tokens, worth about $18.7 million unlocked.
Given its nature and the significant amount involved, this move could have some implications for the altcoin market dynamics in the coming days.
A rewarding gesture for the early risers?
The details surrounding this unlock event have been transparently shared with the public. According to Token Unlocks, a crypto monitoring platform, this release will include 35.6 million SUI tokens.
This quantity represents about 5% of the current circulating supply and interestingly enough, a predominant portion of these tokens could be earmarked for the network’s early supporters.
🚨Remarkable Unlocks Warning 🚨
🗓️ Note the date [ September 3rd ] 🗓️
🔓 35.6 million in three days $SUI will be unlocked, equivalent to a value of $18.7 million
🔥 Get ready and mark your calendar!
Reference:https://t.co/58X45YBAzy pic.twitter.com/zVwTuECUaS
— Token Unlocks (@Token_Unlocks) August 30, 2023
With this event, there is a good chance that some of the planned unlocked tokens can probably be used as a reward SUI’s Active Contributors and Early Supporters (ACES) program.
If set by the SUI developer Mysten Labs earlier this year, the ACES program was developed as a gesture of gratitude. It was intended to recognize and reward the SUI discord members whose contributions were critical before the altcoin’s launch on the mainnet.
Furthermore, data from Token Unlocks, in addition to this unlock, suggests that SUI also plans to set aside some of the unlocked tokens for staking incentives.
What can you expect from SUI?
With such a significant amount of money available, there may be a temptation for some early supporters to sell, especially if a portion is rewarded to active contributors and early supporters. This could potentially lead to a sale.
Historically, massive token unlocks have sometimes led to price drops in the short term given increased market supply.
Moreover, the network, which has expanded rapidly, has done so included a user base rose from 3 million to 5 million users in just 14 days and then further to 6 million active accounts within another three days.
Immediately addition of about 1 million active accounts per week in recent weeks, such growth numbers could soften any bearish fallout.
1 million new accounts in less than 12 hours 😱 pic.twitter.com/4dShywYoGn
— Suipiens 🦍💧 (@suipiens) August 30, 2023
Meanwhile, SUI ranks 89th among the larger cryptos by market capitalization and has seen a notable drop of nearly 10% over the past seven days. And even in the past 24 hours, the carnage continues as the asset registers a 1.3% drop with a market price of $0.49 at the time of writing.
Featured image of Unsplash, chart from TradingView