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Unlocking of FLOW at 23:00 on the 16th! Quickly understand the market conditions, what are the key points to know?

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Unlocking of FLOW at 23:00 on the 16th! Quickly understand the market conditions, what are the key points to know?

This article is authorized to be reprinted from WOO Network, written by Panda

Kronos Research trader James posted some research analysis on Flow on Twitter, stating that token FLOW will unlock 242.8 million on October 16th, James believes: "The unlocking of FLOW will trigger a trading war, which could be a good trading opportunity for high-frequency traders or institutions."

Let's find out why he says so!

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About Flow Blockchain

The FLOW token mentioned above refers to the token issued by Flow Blockchain. So why is Flow Blockchain so hot? It all started in 2017 when a company called Dapper Labs released a game on the Ethereum blockchain called CryptoKitties, where you could breed, collect, and trade NFT cats. The NFT cats at that time also raised issues of high Ethereum transaction fees. Years later, Dapper Labs officially launched its own blockchain called Flow Blockchain.

Fundraising Overview

The fundraising was mainly divided into three rounds: the Private Sale round, the Community Sale round, and the Auction using the Dutch auction format.

Private Sale

Pricing: $0.1

According to information on Coinlist, the sale price for the Community Sale was the same as that for VC participants. (Conditions: lock-up period of two years with unlocking in two stages - half after the first year, and the rest unlocked in batches each month).

We can also see the allocation of investment by VCs on the FLOW token distribution page. Well-known investors like a16z and the Taiwanese accelerator AppWorks were early investors in FLOW.

Community Sale

Pricing: $0.1

The Community Sale started at midnight on September 23, 2020, and ended at 8 am on October 3, with a limit of one thousand US dollars.

Conditions: lock-up period of two years with unlocking in two stages - half after the first year, and the rest unlocked in batches each month.

Dutch Auction

Starting price: $0.1 - $1

End fundraising price: $0.38

The Dutch auction started on October 6, 2020, and the final fundraising price was $0.38. The lock-up period is one year, with 100% released upon expiration.

Details of the Community Sale and Dutch Auction:

Token circulation overview:

FLOW Token Basics

According to the chart below, the contract holdings of FLOW have reached 57.8 million tokens, which include both long and short positions of FLOW. The current status of the currency can also be seen in the chart below.

* Record time is 5:00 PM on October 14, 2021

bybt.com Candlestick Chart: FLOWPERP Contract Holdings:

FLOW Circulating Market Cap:

Token Unlocking Costs

  • The Private Sale raised about 107 million FLOW tokens at a price of $0.1, which is now about 180 times the initial price.
  • The Community Sale raised about 67.85 million FLOW tokens at a price of $0.1, which is now about 180 times the initial price.
  • The Dutch auction raised about 25 million FLOW tokens at a price of $0.38, which is now about 47.36 times the initial price.

Based on the post-unlocking market value, if the price remains the same, FLOW's total market value will rise from 80th to 36th place.

Exchanges

We also shared the exchanges where FLOW can currently be traded. James also mentioned, "It will be very difficult to transfer out from Coinlist on that day. You can pay attention to which exchanges can deposit FLOW tokens, like some Taiwanese users who deposited FLOW from Coinlist to the Blocto wallet, where they can trade directly on BloctoSwap without going to other exchanges."

Exchanges where FLOW is currently tradable:

Trading Opportunities / Insights

Here are some insights from Kronos trader James:

High-frequency traders/institutions will be able to profit from significant volatility when FLOW token unlocks on October 16.

FLOW has great long-term potential. From a supply and demand perspective, shorting FLOW in the short term is a way for James to protect the profits of the tokens he holds. He also mentioned in his tweet that he did not go all-in on shorting, but only partially to protect the profits of the tokens he holds.

If you are optimistic about the development of the FLOW project in the long term, consider starting a grid trading strategy on October 16 to profit from price fluctuations. Even if the FLOW price drops significantly, you won't be hurt because buying FLOW in a low-cost way for long-term investment is possible. You can even place orders at very low prices on exchanges and, if lucky, get very cheap tokens.

Conclusion

Expected to unlock on the night of October 16. As mentioned earlier, there will be a large number of users unlocking from Coinlist that day. If the network is congested, users are likely to trade on Coinlist Pro and on Blocto Swap, a platform popular among Taiwanese users. You can refer to the token-related information shared by James earlier to plan your trading strategy on the unlocking day.

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