Chainlink Unlocks 19 Million LINK and Deposits Majority on Binance

ChainLink banner and an unlocked padlock

Chainlink, a leading decentralized oracle network, continues its multi-year token distribution plan, recently unlocking 19 million LINK ($341 million) and depositing a significant portion (15.95 million, $287 million) on the Binance exchange. This aligns with their strategy to gradually release tokens for wider adoption and network growth.

19M $LINK ($341M) was unlocked from 3 Chainlink: Noncirculating supply contracts ~2hrs ago, of which:

• 15.95M $LINK ($287M) deposited to #Binance
• 3.05M $LINK ($54.3M) moved to Multisig 0xD50f

Since Aug 2022, #Chainlink has unlocked 106M $LINK, and then moved 88.95M $LINKhttps://t.co/tqzkKvxE4V pic.twitter.com/aTnEem5d0k

— Spot On Chain (@spotonchain) February 2, 2024

Chainlink, the leading decentralized oracle network, has unlocked another tranche of its tokens, distributing 19 million LINK (worth roughly $341 million) from three non-circulating supply contracts. Notably, a significant portion, 15.95 million LINK ($287 million), were deposited onto the Binance exchange.

This latest unlocking aligns with Chainlink’s ongoing token distribution strategy initiated in August 2022. Since then, a total of 106 million LINK have been unlocked, with $88.95 million worth (roughly $805 million at the time) moved to Binance at an average price of $9.06 per LINK. These distributions aim to gradually release tokens into circulation, fostering wider adoption and network growth.

Probable Motive for the Move

While the specific reasons for depositing such a large portion on Binance remain undisclosed, potential factors include:

Market liquidity: Binance boasts a significant trading volume for LINK, facilitating efficient buying and selling for investors.

Ecosystem development: Binance Labs actively supports projects building on Chainlink, potentially creating synergies and network effects.

User convenience: Many Chainlink users might already hold funds or trade on Binance, making it a familiar and convenient platform to receive their unlocked tokens.

Long-Term Distribution

It’s important to note that Chainlink’s token distribution plan is designed to unfold over several years, with specific vesting schedules and unlock mechanisms in place. This measured approach aims to balance the need for network growth with maintaining token value and ecosystem stability.

The continued unlocking of LINK and its presence on major exchanges like Binance highlight Chainlink’s commitment to expanding its reach and influence within the blockchain ecosystem. While the ultimate impact of these distributions remains to be seen, they undoubtedly contribute to the growing adoption and awareness of Chainlink’s oracle services.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.