92.65 million of this cryptocurrency unlocked: the price collapses

One of the main layer-2 blockchains of Ethereum (ETH) yesterday, April 16, released almost 100 million tokens as foreseen by the smart contract.

The smart contract has unlocked 92.65 million ARB which went to the wallets of the team that founded the project and the first investors.

Massive unlocking of ARB tokens and the price cannot withstand inflationary pressure

Yesterday was not a sporadic initiative, but a stage in the roadmap planned to release rewards to the team that worked on the development of the project. Even the first supporters who invested at the beginning of the launch of the well-known layer-2 platform received a share of the reward.

The developer team, Team, Future Team and Advisors they obtained a total of 56.13 million tokens worth $63.98 million. While the Investors 36.52 million ARBs worth $41.63 million went.

In the balance of the token’s overall supply, the recent unlock was not painless. It was a significant amount of ARB which increased the quantity of currency, triggering fears about the consequent pressure on supply and the reasonable consequent sell-off of tokens.

In total, 3.5% of Arbitrum’s entire market value was released yesterday, which amounts to $3.03 billion compared to $2.65 billion in ARBs already in circulation.

Last March 16 Arbitrum had already unlocked a significant amount of ARBs, 11.1 billion for a value of over 2 billion dollars. This transaction alone represented inflation above 75% and had a direct impact on the asset price.

How much does token inflation weigh on the real price of ARB

The economic effects of this massive inflation of supply have yet to be fully assimilated by the market. The fact is that the recent operation did not go unnoticed and produced a strong shock in the daily price chart of ARB.

Before the March unlock, Arbitrum was trading at $2.11 two days before the actual unlock. Subsequently, on March 19, the price suffered a loss of 31% until reaching the minimum value of $1.44. Today ARB is trading at $1.15, a decline of 46% in these 33 days.

It must be said that the Relative Strength Index (RSI) on a daily basis reveals weak momentum for Arbitrum, a condition that was not evident during the previous unlock. In March, ARB missed the opportunity of the rally limited to the central two weeks and which instead affected a large part of the market. Now that the rest of the crypto market is suffering due to geopolitical tensions, ARB’s situation could prove more complex than expected.

Technical indicators currently suggest a bearish trend for Arbitrum.

New altcoins with solid fundamentals

The future of Arbitrum may be uncertain in the short term despite it resting on solid fundamentals and confirming itself as one of the most effective Ethereum scaling projects. The countdown to the halving is running out and the immediate effects of this event are not always positive for the market.

Investors could choose options that are not yet susceptible to market fluctuations and focus on alternatives that are still on presale but with good prospects.

One of the most recent and promising examples comes from 5th Scape (5SCAPE)an upcoming decentralized VR gaming platform.

5th Scape recently opened pre-sales and has already raised over $5 million.

Developed on Ethereum, 5th Scape has proven its ability to convince investors with its plans to develop a VR gaming ecosystem that exploits cryptocurrencies.

The platform will launch in the next few weeks and is scheduled to release a wide range of interesting games.

These include the online fighting game Cage Conquest, the racing game Thrust Hunter and the alternative to immersive FIFA soccer games, Kickoff.

They will all be multiplayer games, so 5th Scape aims to build a thriving community of players.

The project’s VR headset and its own VR chair will also be presented, which will further increase immersion.

The 5SCAPE native token will be the payment token on the 5th Scape ecosystem and its gamesthe maximum supply will be 5.21 billion.

The pre-sale aims to raise $15 million. To do this, it has allocated 80% of the total to pre-sales, 10% will be allocated to liquidity, while another 10% will be allocated to development.

Investors can already participate by visiting the official 5th Scape website, where 1 5SCAPE token costs $0.00215.

The price will rise to $0.0087 by the 12th and final presale round and could grow much higher once the token is listed on trading platforms in the future.

Cryptocurrencies are highly volatile and unregulated. No consumer protection. A profit tax may apply.

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