Crypto Projects Axie Infinity, Optimism, and Aptos Prepare for Token Unlocks
In October, several crypto projects are scheduled to unlock a significant number of tokens. Axie Infinity, the blockchain-based NFT game, will release the largest number of tokens. On October 20, they will unlock 15.1 million AXS tokens, which account for 11.5% of the circulating supply and are valued at approximately $71.8 million.
The majority of these tokens will go to the project’s team, with smaller portions allocated to staking rewards, play-to-earn incentives, an ecosystem fund, and advisors. After Axie Infinity’s last unlock in July, the price of AXS dropped by nearly 10%. Currently, the token is trading at $4.73, down 22% for the year.
Optimism and Aptos Unlock $61 Million Worth of Tokens
In addition to Axie Infinity, other projects unlocking tokens in October include Optimism and Aptos. Ethereum Layer 2 solution Optimism is set to release 24.2 million OP tokens on October 30, worth $35.3 million. These tokens will be distributed among core contributors and investors.
Aptos, a Layer 1 blockchain founded by ex-Meta execs, will unlock 4.5 million APT tokens on October 12. These tokens are worth around $26 million and will be divided between the community and the Aptos Foundation.
Avalanche Prepares for $93.4 Million Token Unlock in November
Looking ahead to November, Avalanche is expected to unlock $93.5 million worth of AVAX tokens on November 24. This represents approximately 2.7% of the circulating supply.
Hot Take: Token Unlocks Pose Challenges for Crypto Projects
Token unlocks can have a significant impact on the price and performance of crypto projects. In the case of Axie Infinity, previous unlocks have led to price drops for the AXS token. It remains to be seen how the upcoming unlocks for Optimism, Aptos, and Avalanche will affect their respective tokens.
While token unlocks provide liquidity and opportunities for stakeholders, they also introduce additional supply into the market, which can put downward pressure on prices. Crypto investors and enthusiasts should closely monitor these unlock events and consider their potential impact on the projects involved.
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