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UXLINK price drops 15% as team plans early token unlock vote

UXLINK price drops 15% as team plans early token unlock vote

TheCryptoUpdatesTheCryptoUpdates2025/10/03 23:00
By:Mridul Srivastava

Price Decline and Trading Activity

UXLINK’s price dropped to $0.120 today, marking a 15% decline in just 24 hours. The token has been struggling for some time now—down 5% over the past week and a significant 62% over the past month. Looking at the bigger picture, it’s trading 96% below its all-time high of $3.68 from December 2025. The trading range over the past seven days shows considerable volatility, moving between $0.1066 and $0.1907.

What’s interesting is that the selloff actually drove a massive increase in trading activity. Daily spot volume surged by 612% to reach $119.9 million. Derivatives trading saw an even bigger jump, with CoinGlass reporting a 733% increase in volume. But here’s the catch—open interest actually declined by 15%, which suggests traders are closing positions rather than increasing their exposure to the token.

Governance Vote and Hack Background

This all comes ahead of a critical governance vote scheduled for October 4th on the Ethereum mainnet. UXLINK announced the proposal on October 3rd, asking holders to decide whether to unlock portions of community, team, and treasury allocations ahead of their original 24-48 month schedule.

The early unlock is directly tied to compensation plans for users affected by the September 22nd hack. Security firms PeckShield and Hacken estimated the hack drained between $30-44 million from the protocol. UXLINK has already taken some steps to address the situation—they deployed a new audited contract with a fixed supply and launched a migration portal on October 1st.

Holders who held tokens before the hack are eligible for 1:1 swaps, while those who bought during or after the hack face adjusted compensation tiers. The early unlock vote is meant to speed up compensation payments and support trading resumption on major exchanges.

Community Reaction and Market Outlook

Community sentiment appears divided on the proposal. Analysts suggest that if the early unlock passes, we could see 5-10% of the token supply entering circulation sooner than expected. This creates a bit of a dilemma—on one hand, there are legitimate concerns about dilution from the additional supply hitting the market. On the other hand, quicker compensation could help stabilize sentiment and potentially lead to a recovery similar to what we’ve seen with other projects after major hacks.

The derivatives data showing reduced exposure suggests traders are being cautious. There’s a real possibility of further price declines if the proposal gets rejected or if exchange relistings face delays. The near-term performance really hinges on whether the governance vote provides a credible path toward restoring liquidity and getting back on major exchanges.

I think what makes this situation particularly tricky is the timing. The market is already showing signs of uncertainty with that decline in open interest, and now we have this governance decision hanging over everything. It’s one of those moments where the community’s decision could either accelerate recovery or prolong the current downturn.

Perhaps the most challenging aspect is balancing the immediate need for compensation against the potential long-term effects of early token unlocks. It’s not an easy decision for token holders, and the market seems to be reflecting that uncertainty in the price action we’re seeing today.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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