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Storj Announces Upcoming Lockup 245 Million Tokens Worth More Than $300 Million
Storj has revealed to CoinDesk that it plans to announce a lock-up of tokens worth roughly $300 million for a duration of six months.
The blockchain-based file storage network disclosed its plans for the upcoming lock-up to cryptocurrency news website Coinbase. The lock-up is expected to involve roughly 245 million tokens that are valued at around $300 million. The announcement comes just a few months after a previous announcement in May, during which Storj announced that it would create 500 million new tokens on Ethereum. Storj then sold 70 million of those tokens publicly.
The recent announcement reveals that very few investors are able to keep up with the dates during which firms associated with the development of tokens will gain access to their liquidity. ConsenSys entrepreneur, Ryan Selkis highlighted the problem during Token Summit II which was held this month when he talked about numerous vague token distribution schedules involving illustrious blockchain projects.
Storj was scheduled to release its reserve tokens on December 20th though the company’s executives decided to hold on to those reserves until a better project timeline that is easy to understand is created. This move is expected to help boost stability. It is difficult to achieve clarity and market players are aware of the massive problem that arises due to secrecy in distribution.
“You’ve got these quasi-fiduciaries selling quasi-securities over a quasi-vesting period. Since these coin offerings are so new, there’s a real need to be transparent. There’s some market makers out there trying to manipulate these coins,” stated Matthew May the Chief Financial Officer at Storj.
The company is expected to gain access to a large amount of cash once it releases the tokens and that money can be put to good use such as hiring more employees and seeking more partnerships. It might thus appear suspicious that the company decided to push back the date on which it plans to release the tokens.
Philip Hutchins, the chief technology officer at Storj clarified that money is currently not a problem. He stated that the firm has all the cash that it requires for a period of 6 months and also added that this should be an indicator that the company is currently experiencing stability and that it also plans to be in the market in the long term. Hutchins also pointed out that the Storj has been taking time to understand the pace at which the cadence of the token changes.
The Storj executive also added that the extra time taken by the company is part of its plan to come up with a better understanding of the flow. The rapid changes in cryptocurrency prices have been making things difficult for the company and Hutchins stated that Storj is currently addressing the confusion with the highest level of transparency that it can offer.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
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