AltLayer (ALT) Plummets Ahead of $100 Million Token Unlock
AltLayer’s crypto token, ALT, has experienced a significant decline, dropping over 17% since Monday. This downtrend arrives just as the blockchain scalability platform prepares for a massive token unlock today.
The project will release approximately $100 million in ALT tokens today.
AltLayer Faces Risk of Heavy VC Sell-Off
AltLayer is a project focusing on enhancing blockchain scalability through Restaked Rollups. Consequently, it is set to increase the circulating supply of its ALT token by an impressive 42.09%. This release will introduce 684.33 million ALT tokens, valued at about $100.37 million, into the market.
According to data from TokenUnlocks, the distribution includes:
- 188 million tokens worth $27.57 million for the team,
- 308 million tokens worth $45.17 million for investors,
- 83 million tokens worth $12.17 million for advisors,
- 35.5 million tokens worth $5.21 million for protocol development,
- 25 million tokens worth $3.67 million for the community, and
- 44.83 million tokens worth $6.58 million for the treasury.
Read more: Top 10 Cheapest Cryptocurrencies to Invest in July 2024
The upcoming influx of tokens could potentially introduce heavy selling pressure on the ALT token. According to the crypto analytics platform DYOR, AltLayer has significant venture capitalist (VC) dominance , with these investors seeing an average unrealized profit multiple of 12.41X. Therefore, the potential for high profits not yet realized could prompt some VCs to sell their holdings, further pushing down the ALT price.
Moreover, the market is witnessing proactive moves by some investors who anticipate a further drop in the token price. They are attempting to front-run the unlock by shorting ALT, labeling it a risky bet in its current state. This sentiment is fueled by the disparity between its current $250 million market capitalization and a fully diluted valuation of $1.5 billion.
“Taking a thematic ALT short. My strategy right now is simple. Long ETH and good beta, short bad beta,” pseudonymous crypto trader “Crypto Bully” said .
Despite the bearish outlook, AltLayer has responded to community concerns by amending the vesting schedule to mitigate potential fallout. This adjustment means that after today’s initial token release, AltLayer will not unlock tokens until January 25, 2025.
“In a strategic move, all stakeholders have agreed to accept a 6-month pause in the vesting schedule following the first unlock on July 25, 2024,” AltLayer announced .
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
When vesting resumes, it will follow a linear monthly release for investors and strategic partners over two years and a three-year timeline for the team, treasury, and other involved parties. Such a structured release plan aims to stabilize the token’s valuation and secure a more controlled distribution of the remaining 84% of the locked supply, which will gradually become available until January 2028.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
When Will FTX Refunds, Alleged to Revitalize the Cryptocurrency Market, Start?
FTX refunds, where payments will be made in dollars, could spark movement in the cryptocurrency market.
![](https://img.bitgetimg.com/multiLang/web/d716bc06d972c63aef232727f38dde67.jpeg)
Cardano Set for Short-Term Turbulence but Poised for Big Gains, Expert Warns
![](https://img.bitgetimg.com/multiLang/image/social/fb6163d1f9b3eff4cd09e5c927e1c5d01725701224210.webp)
VanEck to Liquidate Ethereum Futures ETF Amid Waning Interest
![](https://img.bitgetimg.com/multiLang/image/social/949f95a83a0f3596ce6bf5610702aa861725685935927.jpeg)
Arthur Hayes Predicts Bitcoin Could Fall Below $50,000 What It Means for Bitcoin’s Next Move
![](https://img.bitgetimg.com/multiLang/image/social/87487d4b2b110649e9adf7558db2275a1725680529626.jpg)