Celestia (TIA) Token Unlock Event Begins, Crypto Analyst Will Clemente Says the Selloff Is Largely Overblown

Modular blockchain network Celestia has begun a large unlock of its native token, TIA, valued at roughly $890 million at current prices.

Modular blockchain network Celestia's (CELT) native token, TIA, has undergone a large unlock, with 175 million tokens set to be distributed to core contributors, early investors and seed investors.

At current prices, the TIA that is being unlocked is valued at roughly $890 million.

According to data from CoinGecko, TIA is down nearly 20% in the last seven days and has crashed 77% from its all-time high as the unlock takes place.

Token unlocks are often seen as bearish for a crypto asset as it implies more available supply for selling. However, unlocks don’t always result in corrections or crashes, and sometimes even precede rallies.

In the case of Celestia, the large unlock has had minimal impact on the asset's price performance, with much of the sell pressure being absorbed by over-the-counter (OTC) investors looking to enter positions after a long reaccumulation period.

Crypto analyst Will Clemente says that the narrative surrounding the TIA unlock is largely overblown.

“I think this BTC price action has further slid the probability of Thursday’s TIA unlock being bearish towards “no.”

6 months of reaccumulation after 80% drawdown, ton of OTC volume, most widely telegraphed unlock in crypto history, 9 figs short, BTC nearing ATHs.

Am long right now.”

Recently, Chris Burniske, partner at venture capital firm Placeholder, doubled down on Celestia despite the large unlock and said that anything below $5 for TIA is a prime opportunity for bulls.

Said Burniske,

“What TIA bottom trolls aren’t grasping:

1)Celestia as an ecosystem is firing on all cylinders, with an ideologically committed & diverse set of builders experimenting with zeal. Reminds me of early Bitcoin, Ethereum and Solana energy.

2) The ‘evil VCs’ that’re given liquidity are unlikely to calmly unload as anticipated in October because they see the ecosystem traction and aspirations of the team. Many of TIA’s biggest backers are less short-term oriented than portrayed.

3) When the unlock happens, it’s likely Mr. Market realizes there’s far less sell pressure than these shorts are anticipating, and the shorts get blown out, if they don’t get blown out before.

4) Buyers that have been sitting on their hands, worried about the overhang of the unlock, will both be reassured by positive price action, as well as the reduction of uncertainty, allowing them to take action.

5) TIA market released from its current semi-paralysis.”

At time of writing, TIA is trading at $4.76.

The above is the detailed content of Celestia (TIA) Token Unlock Event Begins, Crypto Analyst Will Clemente Says the Selloff Is Largely Overblown. For more information, please follow other related articles on the PHP Chinese website!