Berachain Foundation Denies Massive Token Unlock, Confirms Airdrop Plan
Berachain is experiencing volatility due to rumors of a substantial token unlock involving 10 million BERA tokens, which constitutes nearly 2% of its total supply. This potential unlock has triggered a short-term selling spree among investors concerned about whale manipulation.
Details on Token Unlock
- The 10 million BERA token unlock, valued at $132.1 million, will occur over the next week, with daily releases exceeding $1 million.
- Concerns have arisen regarding possible impacts on market prices due to these large unlocks.
Foundation's Clarification
- Berachain Foundation's Nezha stated that the distribution is part of an airdrop scheme, not a general token unlock.
- Tokens will be allocated to users depositing funds through Boyco and given as rewards upon maturity in early May.
Market Recovery Indicators
- Total value locked (TVL) in Berachain increased from nearly $2 billion to approximately $3.5 billion.
- Daily transactions are reported between 1.5 million and 2.5 million.
- The TVL to fully diluted valuation (FDV) ratio is around 0.76, outperforming most Layer-1 blockchains.