Solana – SOL is a cryptocurrency that has seen significant price fluctuations in the past, and the release of locked funds, or “unlocks,” may potentially affect its price once more. The twitter profile Unlocks Calendar made a spreadsheet with all SOL unlock dates of 2023, which could be helpful to protect yourself from further dumps and price decline of Solana – SOL.
First Unlock of 2023 and Potential Impact on Price
On January 21, 2023, $25 million worth of Solana (2.5 million coins) will be unlocked, which could potentially affect the price of the coin.
However, it is worth noting that the release of locked funds does not necessarily mean that they will all be sold, as early investors may choose to hold onto their coins. Venture capital firms who invested in Solana at the seed stage at a price of $0.04 per coin and later rounds at prices between $0.20-$0.25 have seen an average return on investment of 4000%. As a result, they may be inclined to lock in their profits by selling their holdings when the opportunity arises.
Other Factors to Consider
In the case of Solana – SOL, the total value locked in DeFi platforms is $300 million, while the market capitalization of the coin is $3.6 billion. It is also important to consider the overall health and adoption of a cryptocurrency, as well as its technology and use cases, when determining its potential for success. While the ROI of a coin may be a factor to consider, it is not the only factor that determines its future success.
The inflationary emission rate of Solana – SOL, with $5 billion worth of new coins being added to the supply through a feature called “forced token vaporization.” The overall state of the cryptocurrency market and broader economic conditions.
How to Short Solana – SOL
You can short Solana – SOL on a futures market, such as Bybit. A futures market is a platform where you can buy/sell a contract specifying when and at what price a token will be sold. If you sell a futures contract for Solana – SOL, it suggests a prediction that the price of the coin will decline. You can short Solana – SOL by purchasing contracts that bet on a lower price for the coin.
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