نشر
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CRYPTO MECHANIC
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People always ask me how Token unlocks affect the Price? For example $ENA is going to unlock 2 Billion tokens next month which is 13.75% of it's total supply.
I will explain it in simplest way possible.
Price movements are fully based on supply and demand.
If there is good enough demand for the token new supply will be absorbed by the demand and it will have least affect on price. It may go up depending on how much demand is there or it may just do nothing.
If there is not much demand for that token and the project unlocks more supply. It can have a negative impact on price.
Let me share a simple economic rule
More supply + Less Demand = Price goes down
More demand + Less Supply = Price goes up
More Supply + More Demand = Price stays the same.
Now you know how it works and You can apply it on any token.
I will explain it in simplest way possible.
Price movements are fully based on supply and demand.
If there is good enough demand for the token new supply will be absorbed by the demand and it will have least affect on price. It may go up depending on how much demand is there or it may just do nothing.
If there is not much demand for that token and the project unlocks more supply. It can have a negative impact on price.
Let me share a simple economic rule
More supply + Less Demand = Price goes down
More demand + Less Supply = Price goes up
More Supply + More Demand = Price stays the same.
Now you know how it works and You can apply it on any token.
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