Is This Upcoming Solana Catalyst a Reason to Buy $5,000 of It, or to Sell It All?
Sometimes it isn't clear whether a catalyst will be have a positive or negative impact on an asset's price, either in the short term or the long term. For holders of Solana (CRYPTO: SOL), this is a particularly concerning conundrum, as in early March there will be a key event which could send prices soaring, or send them right into the ground.
Let's analyze what's going to happen and whether it's a worthy buying opportunity with $5,000, -- which could get you a few dozen tokens -- or whether it's a sign you should dump your tokens and move on.
In cryptocurrencies that are launched using a pool of capital from a group of early investors, it's normal for those investors to have their portion of the total outstanding supply locked and unavailable for selling for periods as long as years. Then, over a vesting schedule, their tokens are unlocked and they can be transferred or sold. Given that such early investors typically have disproportionately large holdings, it's a common fear in the cryptocurrency sector that supply unlocks are equivalent to one of the four horsemen of the apocalypse.
Source Fool.com
