A massive sell-off ensued for GMT, the digital currency associated with the STEPN platform. This event occurred following the release of a substantial amount of tokens, totaling 79.2 million, with an estimated value of around $30.24 million. This process took place on January 8 and could have significant implications for the market dynamics of this cryptocurrency, potentially leading to an increase in volatility.
The distribution of these tokens was carried out in a unique manner, as STEPN transferred the vast majority, precisely 79.2 million, to four distinct addresses. These addresses played a crucial role in the subsequent token distribution, which occurred in two stages. In a surprisingly short span of 50 minutes, 55.3 million GMT were distributed to 45 unique addresses. Raising questions about the potential consequences for market stability and investor strategies.
Post-Token Release, GMT Price Started Plummeting
It is interesting to note that only a small percentage, approximately 6.8%, of the unlocked tokens were deposited on the Binance platform. This suggests a cautious approach by the majority of recipients in choosing where to place their newly acquired tokens. Additionally, 22 GMT addresses consistently held the tokens for at least three previous releases, demonstrating a pattern of long-term investment among certain holders.
The market’s reaction to this event was more negative than positive. Following the massive token sell-off, there were flashes of growth that seemed encouraging. However, the digital currency started plummeting. According to the latest data published on CoinMarketCap, GMT is trading at $0.3168, reflecting an approximate 17% drop within a 24-hour period. Its market capitalization fell nearly 13%, and trading volume plunged by 70%.
On the other hand, from a technical perspective. GMT shows signs of a potential breakout on the weekly chart, despite facing resistance around $0.527. Analysts speculate the possibility of a rebound, potentially reaching the next resistance zone at $0.793. This scenario could pave the way for gains of 50% or more. Offering an attractive outlook for investors closely monitoring its evolution in the market.
