ONDO Unlocks Amid RWA Momentum and TRUMP Memecoin Launch
RWA Alpha
3 min read
Ondo Finance (ONDO) is a decentralized investment bank that focuses on real world assets (RWAs) by tokenizing tangible items like bonds, real estate, and loans, allowing them to be traded digitally on the blockchain. Nearly 1.94 billion ONDO governance tokens, which represent 19.41% of the total supply, entered the circulating supply on January 18, following a scheduled unlock. This date also marks the one-year anniversary of ONDO becoming publicly tradable, following the release of its global lock-up after the May 12, 2022, initial coin offering (ICO).
ONDO is one of many RWA-related coins available in the crypto market. The utility or use-case of the ONDO token itself is strictly governance, with staked holdings providing weighted votes on Ondo Finance’s decentralized autonomous organization (DAO) proposals. Unlike other RWA-focused assets, ONDO does not directly offer yield dynamics or any link to the operation of the Ondo Finance platform, focusing solely on its role in decision-making.
The token unlock stirred some FUD (fear, uncertainty, and doubt) in the blockchain community, although many suggest that this widely anticipated event was not news and had already been priced into the market. While an increase in circulating supply would typically prompt an immediate adjustment in token value, this isn’t always the case in crypto markets. The inefficiencies of a decentralized and largely unregulated sector can delay or even mute the expected market response.
Unlike traditional financial markets, which benefit from tools like Bloomberg terminals and brokers offering real-time adjustments to supply and market data, blockchain token holders often face confusion and delayed reactions due to fragmented messaging and the absence of standardized practices. Many crypto participants rely on information shared by community managers on platforms like Telegram and Discord, not the typical investor relations departments or brokers of Wall Street.
ONDO reached an all-time high on December 15, 2024, of $2.14 USD with its market cap climbing to a little over $3B. One month later, just prior to the unlock, the price had fallen to ~$1.35. Moments after the token release itself, the price experienced a quick drop of ~11.1% down to $1.20 and seems to be holding this level at the time of writing.
It is worth noting the ONDO release occurred the same day as the release of the OFFICIAL TRUMP token(TRUMP) which appears to have attracted a large swath of overall market liquidity at the expense of the rest of the general crypto market, including ONDO.
The increase in ONDO's token supply from the unlock reflects the norms of crypto markets, where such events are structured and communicated through mechanisms like whitepapers. However, the lack of clear guidelines under the SEC has left the space without standardized practices for informing and protecting less-engaged holders. Many projects, including ONDO, are actively engaging in and contributing to initiatives that support increased regulatory guidance within the United States, aiming to find the clarity investors and projects seek.
This differs from the highly regulated TradFi arena, where supply changes are often incremental and supported by systems designed to engage even the most apathetic shareholders, such as proxy statements, financial disclosures, and regulatory filings like SEC Form 8-K. While ONDO acted in alignment with crypto standards, the decentralized nature of the space can leave some holders without the same level of accessible guidance found in traditional markets.
Ondo Finance has celebrated a bullish inaugural year of trading, where its token price a year ago was a mere $0.20. In addition to being an innovative and dynamic RWA project, Ondo Finance demonstrated its commitment to shaping the future of digital assets with the team announcing a $1 million donation to Donald Trump's Inauguration Fund and sponsored the Donald J. Trump Inaugural Crypto Ball held in Washington last night.
With figures like Larry Fink championing tokenization as the future of finance, ONDO’s progress underscores the growing excitement around RWA projects. The growing momentum in the sector points to 2025 as the year when 'everything will be tokenized' starts to become a reality.
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Disclaimer: Please note, none of this article is to be construed as financial advice or an endorsement to purchase any digital assets. Do your own research and consult a professional financial advisor prior to making any investments.
Disclosure: The author(s) of this article may have a financial interest in the token of the company or blockchain covered in this publication. The views expressed in this article accurately reflect the personal views of the author(s) about the subject, securities, or issuers, and no part of the compensation of the author(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this commentary. The author(s) may hold a long/short position in the token of the blockchain or company (if any) discussed in this article, and as content contributors, they are not subject to no-trade lists.
