Preparing for Token Unlocks: November Edition
In the upcoming month, there will be several token unlocks that could have an impact on the market. These unlocks will release over $400 million worth of assets into circulation.
Unlocking Tokens in November
The first token to be unlocked this month is SUI on November 3rd. Around $15.9 million worth of SUI tokens will be allocated to the Community Access Program.
On November 12th, Aptos, a layer 1 blockchain developed by former Meta executives, will unlock 24.8 million APT tokens. This release will be distributed to core contributors, investors, the community, and the Aptos Foundation.
ApeCoin (APE) is scheduled for a token unlock on November 17th. Approximately $121.22 million worth of APE tokens will be released.
AVAX, the native token of Avalanche’s layer-1 blockchain, will have a token unlock on November 24th. This release will include 9.54 million AVAX tokens valued at around $9112.50 million.
The last token unlock in November is for Optimism (OP), which will occur on November 30th. Around $34.31 million worth of OP tokens will be unlocked.
Market Impact
Token lockups or vesting periods restrict the trading or conversion of tokens into cash for a specific duration determined by the team’s strategy. The introduction of unlocked tokens can increase selling pressure on assets as they enter cryptocurrency exchanges.
Historically, previous token unlocks have caused downward pressure on the market. However, with the current market recovery, a significant downturn is not expected.
Hot Take: Token Unlocks Bring Uncertainty to the Market
As November approaches, the crypto market is bracing itself for a series of token unlocks. These events will release over $400 million worth of assets into circulation, potentially impacting the market. Token lockups, which prevent the trading or conversion of tokens for a specific period, are set to expire for various tokens such as SUI, APT, APE, AVAX, and OP.
While these unlocks may generate selling pressure and introduce new tokens into exchanges, the market’s recent recovery suggests that a significant downturn is unlikely. Nevertheless, investors should closely monitor these token unlocks and their potential effects on prices and trading dynamics.
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