Kaito is experiencing significant liquidity pressure as approximately 8 million KAITO tokens are set to enter the market following their release from the unstaking cooldown queue. This represents nearly one-third of the total staked tokens, a situation that is uncommon and often seen as a systemic liquidity warning. The release is concentrated over a 48-hour period, with 4.85 million tokens becoming withdrawable on January 22 and an additional 2.1 million on January 23.
The potential for a "stampede of unstaking" looms, as the remaining 23.97 million staked tokens could be forced into the market if prices face downward pressure. This could create a negative feedback loop, exacerbating selling pressure. Additionally, on February 20, a further 33.09 million KAITO tokens will be unlocked, adding to the medium-term liquidity challenges. The recent suspension of Kaito's Yaps operations and a 20% drop in token price have further eroded market confidence, highlighting ongoing liquidity risks.
Kaito Faces Liquidity Pressure as 8M Tokens Enter Market
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