The Release of 20 Million APT by Aptos: What It Means for Crypto Investors
According to data from “Token Unlocks,” the Aptos project is set to release 20 million APT tokens in November. This amounts to about 112% of the total daily trading volume, which could potentially have a negative impact on the crypto market and worry investors.
Three Altcoins at Risk: SOL, APE, and OP
While the focus is currently on three specific cryptocurrencies, namely SOL, APE, and OP, there may be significant liquidity releases as early as September. This raises concerns about the future of these altcoins and their stability in the market.
Aptos’ Plan for the Release of 20 Million APT
The layer-1 Aptos blockchain protocol has announced that it will release a massive 20 million APT tokens on November 12, 2023. This information comes from a vesting plan tracked by “Token Unlocks.” The release is expected to put additional selling pressure on the cryptocurrency and attract speculative positions from traders.
In terms of value, the unlock represents approximately $103.8 million based on the current market price of APT at $5.19. This release accounts for more than 8.5% of Aptos’ circulating supply.
Typically, crypto projects implement such plans to prevent partners and early investors from liquidating their positions all at once, which could lead to a significant drop in coin market value.
Past Token Release and Potential Impact on APT’s Price
Aptos recently carried out another token release worth $24.85 million, but it had no negative effect on the price of APT. On that day, the crypto actually experienced a 0.50% increase in value.
However, according to research firm The Tie, the November release of 20 million APT could have a strongly negative impact on its price due to the significant liquidity it will free up. This amount is equivalent to 112% of the average trading volume over the past 30 days.
Hot Take: Implications for the Crypto Market
The upcoming release of 20 million APT tokens by Aptos has raised concerns among investors. With such a large amount of liquidity being freed up, there is a potential risk of negative price impact on not only APT but also other cryptocurrencies in the market. Traders and investors should closely monitor the situation and consider adjusting their strategies accordingly to mitigate any potential downturns.
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