The price of Biconomy’s BICO token saw a significant 25% price increase today after major backer Eden Block claimed over 1.5 million BICO worth around $417,000 from a vesting wallet, as reported by LookOnChain.
Unlike previous claims where Eden Block staked the newly acquired BICO, this time the VC claimed 210,717 BICO worth around $56,000 as staking rewards. This has led to speculation in crypto circles that Eden Block may look to sell some or all of the newly acquired BICO to take profits, now that the token price has jumped.
This behavior of claiming vesting rewards right before a potential sell-off mirrors what occurred recently with FTX, where Alameda Research claimed staking rewards right before dumping large amounts of FTT tokens. Many analysts see today’s BICO claim by Eden Block in a similar light.
Biconomy, which facilitates easy onboarding to layer-2 scaling solutions, has seen its BICO token rise 32% in last month. However, some analysts are concerned this rapid growth is unsustainable long-term.
The BICO tokenomics and actions of major holders like Eden Block are being closely analyzed by investors to gauge the likelihood of a pullback in the token price after its parabolic rise. For now, BICO remains on an upward price trajectory following the vesting wallet claim, but historical examples suggest the price could reverse if the claimed tokens are sold en masse.
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