Chainlink unlocks 300 million of LINK triggers massive selloff on Binance
On June 21, Chainlink (LINK) unlocked 21 million non-circulating tokens valued at nearly $300 million through vesting contracts. This release of tokens has led to a significant increase in the supply of LINK, with potential economic implications that could impact its price as investors begin to sell off.
A report from SpotOnChain revealed that the Chainlink team transferred 18.75 million of the unlocked tokens to a Binance deposit address, indicating their intention to sell approximately 88% of the newly inflated supply immediately, at a market value of $265 million.
Additionally, 2.25 million LINK was sent to the multisig wallet address 0xD50f, which currently holds over 6 million LINK. This address still has 391.5 million LINK for future unlocks, valued at $5.4 billion, posing a potential threat to the market.
Chainlink has been gradually unlocking and selling its tokens since August 2022, unlocking a total of 127 million LINK and depositing 107.7 million LINK to Binance over the past two years. With a circulating supply of 608.10 million LINK, these unlocks have resulted in a 26.4% inflation over the two-year period.
Despite the regular sell-offs, the price of Chainlink has remained relatively stable, with the token currently trading at $13.78, reflecting a 127.6% gain year-over-year. This performance suggests that there is strong demand for LINK, highlighting the value of Chainlink’s Oracle solution in the growing market for real-world assets (RWA).
Major players in traditional finance, such as BlackRock (NYSE: BLK) and Franklin Templeton, have expressed interest in the tokenization of real-world assets, signaling potential growth opportunities for projects in the cryptocurrency market as institutional capital continues to flow in.
Please note that the information provided in this article is not investment advice and investing in cryptocurrencies carries risks. Your capital is at risk when investing in speculative assets.
