Kusama Rallies 13% After Crowdloan Token Unlock 


Key Takeaways

KSM, the native token of the Kusama network, surged 13.5% Monday.
1.1 million KSM tokens locked up from the network’s first five parachain auctions have been returned to holders.
Despite the unlock increasing the KSM token supply by approximately 12%, it appears demand has also swelled.

Share this article

Despite more tokens entering circulation, the price of KSM has increased by over 13%.

Kusama Surges on Bullish Unlock

It appears that investors have taken the recent Kusama token unlock as an opportunity to buy more. 

KSM, the native token of the Kusama network, jumped 13.5% Monday after 1.1 million tokens locked up from the network’s first five crowdloans were released back to participants. Kusama is currently trading for $83.11, one of only a handful of tokens to register gains today as the rest of the market fell. 

KSM/USD chart. Source: CoinGecko

Kusama is part of the broader Polkadot ecosystem and acts as a canary network on which projects can test their applications in a live environment. In June 2021, Kusama launched its first parachain auctions, giving KSM holders the ability to lend out their tokens to help bootstrap promising projects. 

Projects that received the most KSM contributions gained access to one of the Kusama network’s parachain slots for a one-year period. Holders who contributed would receive their KSM tokens back at the end of the lease, along with additional native tokens distributed weekly throughout the lease period. Karura was the first project to win a parachain slot on Jun. 22, followed by Moonriver, Shiden, Khala, and Bitfrost Finance. 

Almost a year later, the 1.1 million KSM tokens that holders contributed to the first five auctions have been unlocked and returned to participants. While some onlookers had predicted that the influx of KSM tokens would add selling pressure and drive down the token’s price, the opposite has happened. 

Additionally, the native tokens of several parachain winners have also increased in value, presumably due to emissions given out to crowdloan contributors ending. Moonriver’s MOVR token is up 13.6% on the day, while Karura’s KAR token has rallied 7.4%.

With the conclusion of the first round of Kusama parachain auctions, the Polkadot ecosystem has demonstrated its crowdloan model to be effective in successfully bootstrapping projects. Several original parachain winners such as Moonriver and Shiden have already secured new parachain leases through direct purchase or winning a second auction. Whether Polkadot will receive a similar boost when the DOT tokens contributed to its first parachain auctions unlock in October 2023 remains to be seen. 

Disclosure: At the time of writing this piece, the author owned DOT and several other cryptocurrencies. 

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source

Recommended For You

About the Author:

Leave a Reply

Your email address will not be published. Required fields are marked *

PHP Code Snippets Powered By : XYZScripts.com