In today’s cryptocurrency market, the story of the AEVO token has attracted a lot of attention. Especially in May 2023, the unlocking event of AEVO tokens triggered violent market fluctuations. This article will delve into the background of the AEVO token, unlocking events and its impact on the market, helping readers better understand the dynamics of this emerging token.
The origin of AEVO tokens
The AEVO token was launched by options trading platform Aevo, developed by on-chain structured products Ribbon Finance. In April 2023, the Aevo mainnet was officially launched, marking the birth of the AEVO token. Unlike traditional tokens, AEVO is not created out of thin air, but is a rebranding of Ribbon Finance’s previous governance token RBN. Aevo mentioned in the white paper that the AEVO token was launched to better serve its ecosystem.
Before the launch of the AEVO token, most of the RBN tokens were locked in the DAO Treasury, making it difficult to use them effectively. In order to optimize the use of resources, Aevo proposed a more dynamic and functional allocation of the treasury in the AGP-1 proposal. Finally, AEVO tokens will be officially listed on Binance Launchpool in March 2024, with a total token supply of 1 billion and an initial circulation of 110 million.
Price fluctuations of RBN and AEVO
Before AEVO was launched, the price of RBN experienced a round of fluctuations. On March 6, 2023, the price of RBN was approximately 0.79 USDT. Subsequently, after the news of AEVO’s listing was announced, the price rose rapidly and reached a high of 1.83 USDT on March 13. Although after AEVO went online, there was still a price difference of 90%-100% between the two, but as time went by, this price difference gradually narrowed.
The panic of unlocking huge amounts of tokens
On May 15, 2023, rumors began to circulate in the market that AEVO would unlock tokens worth up to $1.06 billion. This news caused panic. Many investors worry that this will lead to violent market fluctuations and even crashes. According to data from the token unlocking website token.unlocks, AEVO’s unlocked amount is equivalent to 770% of its circulating market value. However, this unlocking does not mean the actual "unlocking" of the token, but the conversion of RBN's circulating market value into that of AEVO.
Market reaction after unlocking event
On the day the unlocking event occurred, the price of AEVO tokens fell by 16%. The market reaction to this event was swift and violent, with many investors choosing to sell their tokens at this time. Surprisingly, the Aevo team did not provide a clear clarification on the market panic immediately after the incident, but instead provided relevant information about the conversion of RBN to AEVO.
Clarification and rebound from the Aevo team
On May 16, the Aevo team finally clarified the unlocking incident, emphasizing that this "unlocking" was not an internal unlocking or team unlocking in the traditional sense, but the process of RBN holders migrating their tokens to AEVO. To show its commitment to the market, the Aevo team also stated that it will voluntarily re-lock approximately 15% of the supply by the end of 2024. The announcement quickly triggered a rally in the market, with the AEVO token rising by more than 10% in just three hours.
in conclusion
The story of the AEVO token reflects the complexity and uncertainty of the cryptocurrency market. Although the Aevo team has successfully shouldered the historical burden of the Ribbon Finance period, the token spread of up to 100%, the overwhelming power of conversion rather than unlocking, and the clarifications made after the sale have all made people doubt the market. Manipulation creates doubt.
As the AEVO token enters nearly full circulation, future market performance will depend on whether the team can effectively promote its business development. Investors need to remain vigilant when participating in such tokens and conduct in-depth research on their background and market dynamics to make more informed decisions.