The Impact of Token Unlocks on the Crypto Market
Over $174 million worth of tokens are set to be unlocked this month, raising concerns about potential market reactions. Bitcoin (BTC) is struggling near $26,000, and altcoins are experiencing gradual losses. With significant unlocks scheduled for various altcoins, further downside may be expected.
ApeCoin (APE)
- ApeCoin has already unlocked 50% of its supply, and the remaining vesting schedule may pose challenges for token holders.
- On September 17, ApeCoin will unlock 40.60 million tokens, valued at $58.47 million, which accounts for 11.02% of the circulating supply.
- The unlocked APE tokens will be distributed among seven beneficiaries, including the founder of Yuga Labs, Launch Contributors 1-3, charity, and the Treasury.
Optimism (OP)
- On September 30, Optimism will unlock 24.16 million OP tokens, equivalent to 3.03% of the circulating supply, potentially adding a selling supply worth $33.34 million.
- The fresh tokens will be allocated to core contributors and investors, with 12.75 million tokens for core contributors and 11.41 million tokens for investors.
- Recent unlocks have already resulted in a 7.73% drop in the OP token price, which is currently trading at $1.383.
Aptos (APT)
- Aptos is scheduled to unlock 4.54 million tokens worth $25.22 million on September 12, with 1.33 million tokens for the foundation and 3.21 million tokens for the community.
Sui (SUI)
- On September 3, Sui will release 34.62 million SUI tokens worth $17.43 million as part of the community access program, contributing 4.37% to the circulating supply.
Token unlocks have the potential to impact the crypto market, resulting in price fluctuations and increased selling supply. Investors should closely monitor these unlocks and their potential effects on the market.
Hot Take:
Token unlocks pose a significant risk to the crypto market, as they can lead to increased selling pressure and price declines. Investors should exercise caution and closely track the unlock schedules of different tokens to make informed decisions.
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