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Aster Debates Token Lockups Ahead of $320 Million Airdrop

Key Takeaways

  • ​Aster is weighing lockup periods for its next token giveaway to limit immediate selling and stabilize the ASTER token’s value;
  • CEO Leonard said the team is still deciding how to distribute 320 million ASTER tokens to community participants;
  • The final plan will consider both new recipients and existing holders, as releasing 4% of the supply at once may create sell pressure.

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Aster Debates Token Lockups Ahead of $320 Million Airdrop

Aster, a decentralized trading platform, is deciding whether to include holding periods for recipients of its next token giveaway.

This consideration was shared by the platform’s CEO, Leonard, during a livestream held on September 29.

Leonard explained that such a lockup could help reduce the chances of a large sell-off once tokens are distributed.

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He noted that granting users full access to their tokens immediately might lead to immediate selling, which could impact the token’s value. A staggered release could instead encourage users to stay involved longer.

The concept of vesting, or distributing tokens gradually over time, is a common practice in the cryptocurrency industry. It helps avoid quick sell pressure, especially when new tokens enter the market.

Aster has already set aside over half of its total token supply for community-based giveaways. For its current giveaway round, the project plans to distribute 320 million ASTER tokens. Based on recent market prices, this amount is worth around $600 million.

Although the allocation is confirmed, the method for distributing the tokens is still under discussion. Leonard mentioned that the team is evaluating whether releasing 4% of the total token supply at once would have negative effects.

He said the decision must take into account both the new participants and those who already own ASTER.

On September 22, DBA Asset Management introduced a plan to cut the total number of HYPE tokens in circulation by 45%. Why? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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