Space ID Token Unlock 6% Circulating Supply

Space ID will unlock ID tokens worth 4.42 million USD at 20:00 UTC on December 22, accounting for 6% of the circulating supply from marketing allocation. Multiple calendar websites have confirmed this unlock.

This is a routine unlock event for the decentralized domain service project, and the 6% ratio is relatively high. It may exert pressure on the price in the short term, especially since marketing allocations are typically used for incentives and expenditures, leading to a higher likelihood of inflow into the market. Investors need to pay attention to price trends and trading volume changes after the unlock.

From the project's perspective, Space ID provides domain services within the BNB Chain and multi-chain ecosystem, similar to the traditional internet DNS system. As Web3 adoption increases, the demand for on-chain identities and domains continues to grow. However, the valuation of domain projects heavily relies on actual registration numbers and renewal rates, making it necessary to observe core metrics rather than just the token price.

Investment Advice: The eve of the unlock typically faces selling pressure risks. It may be wise to wait and observe the market response after the unlock. If the price experiences excessive declines and the project's fundamentals remain strong, it could present a buying opportunity. Key data includes total domain registrations, active user counts, and comparisons with competitors like ENS. In terms of token economics, attention should also be paid to the subsequent unlock schedule. If there is a significant unlock risk in the short term, Space ID's multi-chain strategy is a differentiated advantage, but it needs to prove that it can achieve actual adoption across various chains. It is recommended to allocate a small position and set stop-loss orders.