Upcoming Gaming Token Unlocks Could Impact Market Prices
Some significant gaming token unlocks are scheduled to occur by the end of February, which could affect the circulating supply of tokens associated with games like The Sandbox (SAND) and Parallel (PRIME). Traders should closely monitor these unlocks as they may influence market prices.
The Sandbox Unlock
According to estimates from crypto dashboard TokenUnlocks, around 205.59 million SAND tokens are expected to be unlocked on Wednesday. These tokens are allocated to the team, advisors, and company reserves. This unlock represents approximately $99.2 million worth of SAND and accounts for about 9.2% of the current circulating supply.
ApeCoin Unlock
On February 16, approximately 15.6 million ApeCoin (APE) tokens will be unlocked. These tokens are distributed to Bored Ape Yacht Club maker Yuga Labs, founders, launch contributors, the ApeCoin DAO, and charitable efforts. The unlock represents about $23.1 million worth of Ethereum tokens or roughly 2.6% of the circulating supply.
Immutable Unlock
Starting on February 22, Immutable will begin a 28-day linear unlock of 1.22 million IMX tokens per day. This amounts to around $29.3 million worth of unlocks before the end of February, representing less than 1% of the current circulating supply.
Parallel PRIME Token Unlock
On February 28, approximately 1.66 million PRIME tokens tied to collectible card game Parallel will be unlocked. This release is equivalent to just under 5% of the current circulating supply.
Yield Guild Games (YGG) Token Unlock
Web3 gaming guild organization Yield Guild Games has an unlock for its YGG token scheduled for February 27. Around 16.69 million tokens will be unlocked, valued at $7.89 million, which represents nearly 5.7% of the circulating supply.
Stepn GMT Token Unlock
Move-to-earn game Stepn will begin a 31-day linear unlock of GMT tokens on February 29. Approximately $833,000 worth of tokens will be unlocked daily in February, with an additional $25 million worth unlocked in March.
What Are Token Unlocks?
Token unlocks occur when new tokens tied to games, apps, and other crypto projects are released gradually over time to grow the circulating supply. These allocations often go to team members, community-controlled DAO treasuries, and ecosystem development funds. Traders pay attention to unlock dates as a large influx of tokens into the market can signal sell pressure and impact token prices.
Hot Take: Impact on Market Prices
The upcoming gaming token unlocks have the potential to influence market prices. While these unlocks may introduce additional supply, it’s important to note that some of the mentioned tokens have experienced recent gains. IMX, ApeCoin, and PRIME have all seen notable increases in value over the past month. Traders should closely monitor these developments and consider the potential impact on their investment strategies.
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