The native token of Conflux Network, CFX, has demonstrated impressive performance since its listing on multiple exchanges in 2021. However, March 29 marked a day of notable price fluctuations for CFX, driven by two key events:
Early Token Unlock Announcement:
- Conflux Foundation released a statement at 11:00 AM (UTC+8) confirming that CFX had met the criteria for early token release (price sustained above $1 for 5 consecutive days).
- Approved private investors received accelerated access to their locked CFX holdings, increasing circulating supply.
Binance Listing Announcement:
- At 14:54 (UTC+8), Binance announced zero-fee listings for CFX/BTC, CFX/BUSD, and CFX/USDT pairs, with trading commencing at 19:00.
- Initial hype propelled CFX from $1.3 to $1.85, but prices later corrected to ~$1.3 due to profit-taking.
Key Factors Behind the Volatility
1. Investor Behavior Post-Unlock
- Per Conflux’s Tokenomics Whitepaper, early unlocks incentivized some private investors to sell portions of their holdings, creating sell pressure.
- Retail traders’ panic selling exacerbated the downturn.
2. Market Reaction to Binance Listing
- Short-term speculators capitalized on the listing news, triggering a pump-and-dump pattern.
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FAQs
Q: Will CFX price stabilize after the unlock?
A: Yes, as the market absorbs the new supply, volatility typically subsides unless further unlocks occur.
Q: Why did Binance restrict deposits to BEP-20 CFX?
A: This streamlined integration with Binance Smart Chain (BSC) but limited cross-chain flexibility temporarily.
Q: Is CFX a long-term hold?
A: Conflux’s tech partnerships (e.g., China’s blockchain initiatives) suggest strong fundamentals, but monitor token release schedules.