RIZE Token Plummets Over 40% Following Major Exchange Listing

RIZE token, part of the T-RIZE project, experienced a significant drop of over 40% just after its launch on major exchanges like Kraken. The decrease was linked to unrestricted trading by private investors while airdrop tokens remained locked, resulting in sell pressure. RIZE aims to tokenize real-world assets and has garnered significant public attention despite the downturn.

RIZE, the native token of the T-RIZE project, has recently faced a notable crash, losing over 40% of its value in less than 24 hours. As of the morning of May 16, in Asia, it traded at around $0.046, a stark decline from its initial trading value.

This downturn follows RIZE’s listing on prominent exchanges like Kraken, which took place shortly after its Token Generation Event (TGE) and mainnet launch on May 15. Following its debut, reports indicated that RIZE tumbled nearly 48%. The token operates on the Base blockchain, a Layer 2 solution developed by Coinbase.

In addition to Kraken, RIZE also listed on decentralized exchange Aerodrome and the DEX aggregator Matcha (operating on Base). Upon launching, the circulating supply was around $27 million out of a total capped supply of 5 billion.

Of the total, 4% — specifically, 200 million tokens — were designated for future airdrops but remain locked due to vesting regulations; a one-month cliff followed by a six-month vesting period applies here, restricting immediate trading for recipients. Meanwhile, private investors received 7% of the supply, or about 350 million tokens, with no such lockup. This lack of restrictions likely contributed to the selling spree that impacted RIZE’s value soon after it became available for trading.

Additionally, both liquidity and treasury allocations, each holding 10% of the supply, are unrestricted, which may have intensified the sell-off. Notably, seed and growth investors have a six-month cliff, while the team’s share of 14% is locked for two years. Governance tokens are set to unlock progressively over a three-year period after a year-long cliff.

Market sell-offs like what RIZE has experienced aren’t uncommon in the cryptocurrency landscape, particularly when tokens launch on significant exchanges during their TGE. This kind of volatility can stem from early investors eager to realise profits, even if the long-term potential of a project remains strong.

Interestingly, RIZE’s launch garnered considerable public interest, even trending on Google amid its price dip. Such attention could potentially increase demand, suggesting potential for new investors to step in and alleviate some of the pressure from sellers.

To explain what RIZE actually is: it’s tied to T-RIZE Group, focusing on the tokenization of real-world assets, including real estate and infrastructure. Built on Rizenet, a Layer 1 blockchain leveraging Avalanche technology, the platform aims to facilitate decentralised machine learning and secure asset tokenization.

RIZE tokens serve various functions, including governance rights, payment for gas fees, and access to exclusive investment opportunities. Additionally, they play a part in federated learning, enabling data collaboration without sacrificing user privacy.

T-RIZE Group operates out of Montreal, Canada, and has already pulled off a significant tokenization deal worth $300 million. The project is also supported by École de technologie supérieure (ÉTS), a leading tech university in Canada, along with notable partners like Canton Network, Hashlock, and IBC Group.

It’s crucial to note that this article does not constitute investment advice. Readers should approach the content as educational material only.