AVAX token flat before $130M token unlock

On Sunday, millions of AVAX tokens will be released and distributed to key players in the Avalanche blockchain ecosystem, resulting in a significant increase of 1.2% in the total supply. AVAX is the native cryptocurrency of the Avalanche blockchain and the 9.3 million tokens that will be released are worth approximately $130 million. According to Patrick Sutton, Avalanche’s communications chief, the tokens will be distributed to the Avalanche Foundation, strategic partners, Ava Labs, and through an airdrop. Sutton clarified that the tokens will not be automatically put to use and the Foundation will have discretion over when and how to use them. AVAX is used as gas for Avalanche’s smart contracts ecosystem and staking to secure the blockchain. The current price of AVAX stands at $14.20. Lindsey Winder, the CEO of token infrastructure firm Hedgey Finance, said that while token unlocks may cause concern, the upcoming Avalanche unlock has been planned for some time and most sophisticated actors have prepared for it. According to crypto analytics firm Token Insights, 358.55 million AVAX tokens remain locked, although Sutton disputes this figure and says that only 96.06 million tokens remain locked.

Edited by Danny Nelson.